Cerebras Systems (NASDAQ:CBRS) Receives Buy Rating from Rosenblatt Securities

Key Points

• Rosenblatt Securities reaffirmed its Buy rating on Cerebras Systems and set a $300 price target, implying 36.36% upside from the previous close. Analysts overall assign the stock a “Moderate Buy” consensus rating with an average target of $299.90.
• Cerebras reported quarterly revenue of $209.87 million, up 74.3% year over year, but posted an EPS loss of $2.98 that significantly missed the expected loss of $0.21.
• Shares opened at $220.01 after trading between $160.81 and $386.34 over the past year, while insiders sold approximately $31.6 million of stock over the last three months.

Cerebras Systems (NASDAQ:CBRS - Get Free Report)'s stock had its "buy" rating reissued by equities research analysts at Rosenblatt Securities in a research note issued on Wednesday,Benzinga reports. They presently have a $300.00 price objective on the stock. Rosenblatt Securities' target price would indicate a potential upside of 36.36% from the company's previous close.

CBRS has been the subject of a number of other research reports. UBS Group boosted their target price on Cerebras Systems from $320.00 to $330.00 and gave the stock a "buy" rating in a research report on Thursday, August 13th. Weiss Ratings started coverage on Cerebras Systems in a report on Thursday, August 13th. They set a "sell (d)" rating for the company. Mizuho reduced their price objective on shares of Cerebras Systems from $310.00 to $300.00 and set an "outperform" rating for the company in a research note on Thursday, August 13th. TD Cowen initiated coverage on Cerebras Systems in a report on Monday, June 8th. They issued a "buy" rating and a $275.00 price target on the stock. Finally, Zacks Research upgraded shares of Cerebras Systems to a "hold" rating in a report on Tuesday, June 9th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $299.90.

Cerebras Systems Trading Down 12.7%

Shares of CBRS stock opened at $220.01 on Wednesday. The firm's fifty day simple moving average is $209.37. Cerebras Systems has a 12 month low of $160.81 and a 12 month high of $386.34.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The company reported ($2.98) earnings per share 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 firm's revenue was up 74.3% on a year-over-year basis. As a group, analysts expect that Cerebras Systems will post -0.52 earnings per share for the current year.

Insider Activity at Cerebras Systems

In other news, COO Dhiraj Mallick sold 36,131 shares of the firm's stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $169.28, for a total value of $6,116,255.68. Following the completion of the sale, the chief operating officer owned 33,314 shares in the company, valued at approximately $5,639,393.92. This trade represents a 52.03% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Sean Lie sold 10,033 shares of Cerebras Systems stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $170.07, for a total transaction of $1,706,312.31. Following the transaction, the chief technology officer directly owned 10,033 shares of the company's stock, valued at approximately $1,706,312.31. This represents a 50.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 167,547 shares of company stock valued at $31,585,799 over the last three months.

Institutional Trading of Cerebras Systems

Institutional investors have recently added to or reduced their stakes in the company. Bank of New York Mellon Corp bought a new position in shares of Cerebras Systems during the second quarter valued at approximately $6,118,000. Ratan Capital Management LP purchased a new stake in shares of Cerebras Systems in the second quarter worth approximately $4,641,000. Finally, Tiger Pacific Capital LP bought a new stake in shares of Cerebras Systems during the 2nd quarter worth approximately $221,000.

Cerebras Systems News Summary

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

• Positive Sentiment: CS-4 targets the AI inference market. Cerebras says its new system can deliver performance up to 30 times faster than GPU-based solutions, while its wafer-scale architecture is designed to reduce latency in chatbot and AI-agent workloads. The launch could expand Cerebras’ position as enterprises shift spending toward real-time inference. Cerebras Unveils CS-4
• Positive Sentiment: Commercial momentum remains substantial. Cerebras is associated with hyperscale opportunities involving OpenAI, AMD and Amazon, and reports approximately $25.4 billion in remaining performance obligations. Revenue grew 74.3% year over year to $209.9 million in the latest quarter, while management projects full-year core revenue of $880 million to $890 million.
• Positive Sentiment: Needham reaffirmed its Buy rating and assigned a $300 price target, implying significant potential upside from the stock’s recent level. The target is consistent with the broader analyst consensus near $299.90. Needham Buy Rating and Price Target
• Neutral Sentiment: The CS-4 announcement is a catalyst but also a test. Reports emphasize Cerebras’ potential to outperform traditional GPUs, but investors may wait for independent benchmarks, customer deployments and revenue contribution before treating the claims as proven. Cerebras Launches New Server Chip
• Negative Sentiment: Profitability remains a major concern. Cerebras reported a quarterly loss of $2.98 per share, far below the expected loss of $0.21. The earnings miss and the stock’s wide trading range may be encouraging profit-taking despite strong revenue growth.
• Negative Sentiment: Insider selling adds pressure. Director Steven Vassallo sold 50,000 shares for approximately $10.9 million, cutting his ownership by 50.2%. The filing does not explain the sale, but its size may weigh on sentiment. SEC Form 4 Insider Sale

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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