Cerebras Systems (NASDAQ:CBRS) Stock Gets Price Target Cut from UBS Group

Key Points

• UBS cut its Cerebras price target to $155 from $250 but maintained a Buy rating, implying 46.75% upside from the prior close. Other analysts also lowered targets, while the consensus remains Moderate Buy with a $237.80 target.
• Cerebras reported quarterly EPS of $0.13, beating estimates, and raised its full-year revenue outlook to $940 million–$960 million; its quarterly revenue was $230.9 million.
• The stock traded at $105.62, while insiders sold about 1.87 million shares worth roughly $383.7 million last quarter. A reported delay in delivering AI capacity to OpenAI adds near-term execution risk.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) had its target price lowered by investment analysts at UBS Group from $250.00 to $155.00 in a research note issued on Friday, Benzinga reports. The firm currently has a "buy" rating on the stock. UBS Group's price objective points to a potential upside of 46.75% from the stock's previous close.

Several other research analysts have also recently commented on CBRS. TD Cowen lowered their price target on shares of Cerebras Systems from $275.00 to $175.00 and set a "buy" rating for the company in a report on Monday, October 19th. Morgan Stanley reduced their price objective on shares of Cerebras Systems from $279.00 to $178.00 and set an "overweight" rating on the stock in a report on Monday. Rosenblatt Securities restated a "buy" rating and issued a $300.00 price objective on shares of Cerebras Systems in a report on Wednesday, August 19th. Freedom Capital raised shares of Cerebras Systems from a "hold" rating to a "strong-buy" rating in a research report on Friday, October 2nd. Finally, Wedbush set a $205.00 target price on shares of Cerebras Systems in a research note on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $237.80.

Cerebras Systems Price Performance

Shares of Cerebras Systems stock traded up $7.87 on Friday, reaching $105.62. 22,367,411 shares of the company were exchanged, compared to its average volume of 8,139,307. Cerebras Systems has a 1-year low of $77.84 and a 1-year high of $386.34. The company has a market capitalization of $25.09 billion and a P/E ratio of -1,315.45. The company has a debt-to-equity ratio of 0.02, a quick ratio of 5.80 and a current ratio of 5.82. The stock's 50 day moving average is $152.65.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last released its earnings results on Thursday, November 12th. The company reported $0.13 earnings per share for the quarter, topping analysts' consensus estimates of ($0.13) by $0.26. The firm had revenue of $230.87 million for the quarter. On average, research analysts predict that Cerebras Systems will post -0.52 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CTO Sean Lie sold 710,247 shares of the firm's stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $207.86, for a total transaction of $147,631,941.42. Following the sale, the chief technology officer owned 368,926 shares of the company's stock, valued at approximately $76,684,958.36. This trade represents a 65.81% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Steven Vassallo sold 50,000 shares of the business's stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $210.30, for a total value of $10,515,000.00. Following the sale, the director owned 171,977 shares of the company's stock, valued at approximately $36,166,763.10. The trade was a 22.52% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 1,874,452 shares of company stock worth $383,719,154.

Institutional Trading of Cerebras Systems

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Value Aligned Research Advisors LLC purchased a new position in shares of Cerebras Systems in the 2nd quarter valued at $241,934,000. Washington University raised its stake in Cerebras Systems by 175.3% during the 3rd quarter. Washington University now owns 1,517,400 shares of the company's stock worth $269,566,000 after acquiring an additional 966,314 shares in the last quarter. Wellington Management Group LLP purchased a new stake in Cerebras Systems in the second quarter valued at $194,853,000. Lunate Capital Ltd purchased a new stake in Cerebras Systems in the third quarter valued at $115,351,000. Finally, State Street Corp acquired a new position in Cerebras Systems in the second quarter valued at $105,343,000.

Cerebras Systems News Roundup

Here's some of the latest news about CBRS:

• Positive Sentiment: Cerebras reported $230.9 million in third-quarter core revenue and earnings of $0.13 per share, above the consensus estimate of a loss of $0.13. It raised full-year revenue guidance to $940 million–$960 million, versus the $887 million consensus, and forecast fourth-quarter revenue of $310 million–$330 million, ahead of estimates. Reuters report on raised forecast
• Neutral Sentiment: Needham lowered its price target to $200 from $300 but maintained a Buy rating, signaling a more cautious valuation while still seeing potential upside. Needham analyst ratings
• Negative Sentiment: Cerebras has delayed delivery of AI capacity for OpenAI because of data-center construction delays, creating a near-term execution risk. Separately, a law firm announced an investor-claims investigation, which could add legal uncertainty. Report on OpenAI delivery delay Investor investigation announcement

About Cerebras Systems

Cerebras Systems develops computing systems and software designed for artificial intelligence and other compute-intensive workloads. Its products are built around the Wafer-Scale Engine, a large processor designed to support AI model training and inference, and include the CS-3 system and related software. The company also offers cloud-based access to its AI computing infrastructure, giving customers a way to run AI workloads without deploying its systems on site. Its offerings are aimed at organizations developing and operating large AI models, including businesses, research institutions and public-sector customers.

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