Cerebras Systems (NASDAQ:CBRS) Rating Increased to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded Cerebras Systems to “Hold” from “Sell,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $299.90.
• Cerebras reported 74.3% year-over-year revenue growth to $209.87 million, but its quarterly loss of $2.98 per share significantly missed the $0.21-per-share consensus estimate.
• Insiders sold 117,547 shares worth approximately $20.7 million over the past three months, with the CEO and COO identifying tax withholding obligations tied to vested equity awards as the reason for their sales.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued to investors on Saturday.

Other analysts also recently issued reports about the stock. TD Cowen assumed coverage on shares of Cerebras Systems in a report on Monday, June 8th. They issued a "buy" rating and a $275.00 price objective on the stock. Zacks Research raised shares of Cerebras Systems to a "hold" rating in a report on Tuesday, June 9th. UBS Group boosted their target price on shares of Cerebras Systems from $320.00 to $330.00 and gave the company a "buy" rating in a research report on Thursday. Needham & Company LLC reaffirmed a "buy" rating and issued a $300.00 price target on shares of Cerebras Systems in a report on Thursday. Finally, Weiss Ratings assumed coverage on Cerebras Systems in a research report on Thursday. They set a "sell (d)" rating on the stock. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Cerebras Systems presently has an average rating of "Moderate Buy" and an average target price of $299.90.

Cerebras Systems Price Performance

Shares of NASDAQ:CBRS opened at $218.98 on Friday. Cerebras Systems has a 52-week low of $160.81 and a 52-week high of $386.34. The business has a 50-day moving average price of $209.22.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last issued its earnings results on Wednesday, August 12th. The company reported ($2.98) EPS for the quarter, missing analysts' consensus estimates of ($0.21) by ($2.77). The company had revenue of $209.87 million during the quarter. Cerebras Systems's revenue was up 74.3% on a year-over-year basis. As a group, equities analysts predict that Cerebras Systems will post -0.89 earnings per share for the current fiscal year.

Insider Activity at Cerebras Systems

In other news, CEO Andrew D. Feldman sold 17,990 shares of Cerebras Systems stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $173.06, for a total value of $3,113,349.40. Following the sale, the chief executive officer owned 17,990 shares in the company, valued at $3,113,349.40. This trade represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Dhiraj Mallick sold 36,131 shares of the company's stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $169.28, for a total transaction of $6,116,255.68. Following the transaction, the chief operating officer owned 33,314 shares of the company's stock, valued at approximately $5,639,393.92. This trade represents a 52.03% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 117,547 shares of company stock valued at $20,676,799.

Hedge Funds Weigh In On Cerebras Systems

An institutional investor recently bought a new stake in Cerebras Systems stock. Bank of New York Mellon Corp bought a new stake in Cerebras Systems Inc. (NASDAQ:CBRS - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm bought 27,682 shares of the company's stock, valued at approximately $6,118,000.

Key Headlines Impacting Cerebras Systems

Here are the key news stories impacting Cerebras Systems this week:

• Positive Sentiment: Cerebras reported strong underlying demand: core revenue increased 103% year over year, while cloud-services revenue surged 287% as customers adopted its fast-inference technology. CBRS Q2 Earnings Beat Estimates as Cloud Revenues Surge 287%
• Positive Sentiment: The company raised its full-year revenue outlook and said it is expanding data-center and manufacturing capacity to support anticipated 2027 growth. Its remaining performance obligations reportedly exceed $25.4 billion, offering substantial long-term visibility. CBRS Q2 Earnings Call Focuses on Capacity for 2027 Growth
• Positive Sentiment: OpenAI selected Cerebras to power the ultrafast mode for GPT-5.6 Sol, strengthening Cerebras’ customer validation and positioning in the rapidly growing AI-inference market. Cerebras Powers Ultrafast Mode for OpenAI's GPT-5.6 Sol
• Positive Sentiment: Several analysts remain constructive: Wedbush raised its price target to $290 with an outperform rating, while Rosenblatt reaffirmed a $300 target and buy rating.
• Neutral Sentiment: Cerebras will livestream its 2026 SUPERNOVA event, where product announcements and demonstrations could provide a near-term catalyst, although the financial impact remains uncertain. Cerebras to Host Livestream of 2026 SUPERNOVA Event
• Negative Sentiment: Second-quarter revenue of approximately $180 million increased 74% year over year but missed analysts’ estimate of about $194 million. The shortfall raised concerns that Cerebras’ growth trajectory may be less predictable than expected. Cerebras Slumps as Mixed Quarterly Results Test AI Growth Narrative
• Negative Sentiment: Muted third-quarter growth expectations, margin pressure and a quarterly loss overshadowed the raised annual outlook. Investors also questioned whether Cerebras can scale quickly enough to challenge larger AI-chip competitors such as Nvidia.

Cerebras Systems Company Profile

Cerebras Systems is a technology company focused on building artificial intelligence infrastructure, including hardware and software designed to accelerate deep learning and large-scale AI workloads. The company is best known for its wafer-scale processor architecture, which is intended to provide high-performance compute for training and inference applications.

In addition to its AI chips, Cerebras offers systems and related software tools that support researchers and enterprises working with machine learning models.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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