Cerebras Systems (NASDAQ:CBRS) Sees Strong Trading Volume - Should You Buy?

Key Points

• Cerebras Systems saw unusually heavy trading volume, with 5.88 million shares changing hands as the stock rose to $215.85, up about 3.8% on the day.
• Recent analyst coverage remains broadly positive, with multiple firms reiterating buy ratings and price targets ranging from $280 to $340; the consensus view is a Moderate Buy with an average target of $299.30.
• The company reported stronger-than-expected quarterly results, posting an EPS loss of $0.04 versus estimates for a $0.14 loss and revenue of $193.41 million versus expectations of $180.70 million, while insiders also sold shares in recent weeks.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report) saw unusually-high trading volume on Wednesday . 5,880,271 shares were traded during mid-day trading, a decline of 17% from the previous session's volume of 7,064,786 shares.The stock last traded at $215.8510 and had previously closed at $208.57.

Wall Street Analyst Weigh In

A number of analysts have recently commented on CBRS shares. Needham & Company LLC restated a "buy" rating and set a $300.00 price objective on shares of Cerebras Systems in a report on Wednesday, June 24th. Rosenblatt Securities restated a "buy" rating and issued a $300.00 price target on shares of Cerebras Systems in a report on Wednesday, June 24th. Craig Hallum initiated coverage on Cerebras Systems in a report on Monday, June 8th. They set a "buy" rating and a $325.00 target price on the stock. Citigroup assumed coverage on Cerebras Systems in a report on Monday, June 8th. They issued a "buy" rating and a $340.00 price target for the company. Finally, Barclays started coverage on shares of Cerebras Systems in a research report on Monday, June 8th. They issued an "overweight" rating and a $280.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $299.30.

Cerebras Systems Trading Up 3.8%

The firm has a fifty day simple moving average of $221.65.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last issued its earnings results on Tuesday, June 23rd. The company reported ($0.04) EPS for the quarter, beating analysts' consensus estimates of ($0.14) by $0.10. The company had revenue of $193.41 million during the quarter, compared to analyst estimates of $180.70 million.

Insider Activity

In other Cerebras Systems news, CTO Sean Lie sold 10,033 shares of the business's stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $170.07, for a total transaction of $1,706,312.31. Following the completion of the transaction, the chief technology officer directly owned 10,033 shares of the company's stock, valued at $1,706,312.31. The trade was a 50.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Dhiraj Mallick sold 10,000 shares of the firm's stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $206.51, for a total transaction of $2,065,100.00. Following the completion of the sale, the chief operating officer owned 10,000 shares in the company, valued at $2,065,100. The trade was a 50.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 117,547 shares of company stock valued at $20,676,799.

About Cerebras Systems

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.

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