UBS Group Has Lowered Expectations for Cerebras Systems (NASDAQ:CBRS) Stock Price

Key Points

• UBS lowered its price target for Cerebras Systems from $330 to $250 while maintaining a “buy” rating, implying 159.44% upside from the stock’s $96.36 price. The analyst consensus remains “Moderate Buy,” with an average target of $281.90.
• Cerebras shares fell 11.7% in Monday trading and are near their 12-month low of $95.03, following a quarterly EPS miss despite 74.3% year-over-year revenue growth to $209.87 million.
• Company insiders sold approximately 1.92 million shares worth $394.6 million over the past three months, while several institutional investors—including Value Aligned Research Advisors and Wellington Management—built new positions.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) had its price objective dropped by equities research analysts at UBS Group from $330.00 to $250.00 in a research report issued to clients and investors on Monday, Benzinga reports. The firm currently has a "buy" rating on the stock. UBS Group's target price indicates a potential upside of 159.44% from the stock's current price.

A number of other research firms have also commented on CBRS. Needham & Company LLC restated a "buy" rating and set a $300.00 price objective on shares of Cerebras Systems in a research note on Wednesday, August 19th. Jefferies Financial Group upgraded Cerebras Systems to an "outperform" rating in a research report on Monday, October 5th. Rosenblatt Securities reissued a "buy" rating and set a $300.00 target price on shares of Cerebras Systems in a report on Wednesday, August 19th. Morgan Stanley raised their price target on Cerebras Systems from $273.00 to $279.00 and gave the stock an "overweight" rating in a research report on Thursday, August 13th. Finally, TD Cowen decreased their price target on Cerebras Systems from $275.00 to $175.00 and set a "buy" rating on the stock in a research report on Monday, October 19th. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $281.90.

Cerebras Systems Trading Down 11.7%

NASDAQ CBRS traded down $12.82 during trading on Monday, reaching $96.36. The company's stock had a trading volume of 13,041,672 shares, compared to its average volume of 7,820,107. The company has a debt-to-equity ratio of 0.02, a current ratio of 5.82 and a quick ratio of 5.80. The stock has a market cap of $22.89 billion and a price-to-earnings ratio of -1,204.50. Cerebras Systems has a 12 month low of $95.03 and a 12 month high of $386.34. The company has a 50 day moving average of $168.82.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last announced its earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.21) by ($2.77). The business had revenue of $209.87 million for the quarter. The company's revenue for the quarter was up 74.3% on a year-over-year basis. On average, equities analysts forecast that Cerebras Systems will post -0.52 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Steven Vassallo sold 50,000 shares of Cerebras Systems stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $210.30, for a total value of $10,515,000.00. Following the transaction, the director directly owned 171,977 shares of the company's stock, valued at $36,166,763.10. This trade represents a 22.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Eric Vishria sold 68,268 shares of the business's stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $229.77, for a total transaction of $15,685,938.36. Following the transaction, the director owned 31,383 shares of the company's stock, valued at approximately $7,210,871.91. This represents a 68.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,924,452 shares of company stock valued at $394,628,154 over the last three months.

Hedge Funds Weigh In On Cerebras Systems

A number of institutional investors have recently modified their holdings of CBRS. Value Aligned Research Advisors LLC acquired a new stake in Cerebras Systems in the second quarter valued at about $241,934,000. Wellington Management Group LLP acquired a new position in Cerebras Systems during the second quarter worth about $194,853,000. State Street Corp acquired a new position in Cerebras Systems during the second quarter worth about $105,343,000. Dragoneer Investment Group LLC bought a new position in shares of Cerebras Systems in the second quarter worth about $88,400,000. Finally, Sumitomo Mitsui Trust Group Inc. lifted its holdings in shares of Cerebras Systems by 59.6% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 490,139 shares of the company's stock worth $87,073,000 after acquiring an additional 183,035 shares during the last quarter.

About Cerebras Systems

Cerebras Systems is a technology company that develops specialized computing systems for artificial intelligence and high-performance computing. Its core product is the Wafer-Scale Engine, a processor designed to provide large-scale computing capacity and high-speed data movement for training and running AI models.

The company offers integrated AI computing systems, including the Cerebras CS series, which combines its wafer-scale processors with supporting hardware and software. Cerebras also provides access to its technology through cloud-based services, enabling businesses, research organizations and other users to develop and deploy AI applications without operating the underlying systems themselves.

Founded in 2015 and headquartered in Sunnyvale, California, Cerebras serves customers in sectors such as technology, government, scientific research and other data-intensive industries.

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