Cerebras Systems (NASDAQ:CBRS) Shares Down 9.7% - What's Next?

Key Points

• Cerebras Systems shares fell 9.7% on Wednesday, closing at $184.01 after trading as low as $182.50, with volume below its daily average.
• Despite the drop, several analysts remain bullish: the stock has a Moderate Buy consensus rating and an average price target of $299.30, with multiple firms recently initiating or raising targets.
• The company’s latest earnings beat expectations, reporting $(0.04) EPS versus an expected $(0.14) and revenue of $193.41 million; however, insider selling has been notable, including sales by the CTO and COO.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report)'s stock price fell 9.7% during mid-day trading on Wednesday . The stock traded as low as $182.50 and last traded at $184.01. Approximately 4,575,905 shares changed hands during trading, a decline of 38% from the average daily volume of 7,381,810 shares. The stock had previously closed at $203.81.

Analysts Set New Price Targets

A number of brokerages recently commented on CBRS. Craig Hallum assumed coverage on shares of Cerebras Systems in a research note on Monday, June 8th. They issued a "buy" rating and a $325.00 price objective on the stock. Wedbush upped their price target on shares of Cerebras Systems from $270.00 to $280.00 and gave the company an "outperform" rating in a report on Wednesday, June 24th. Wall Street Zen upgraded shares of Cerebras Systems from a "strong sell" rating to a "sell" rating in a research report on Sunday, June 21st. Freedom Capital upgraded Cerebras Systems to a "hold" rating in a research report on Monday, June 29th. Finally, TD Cowen began coverage on Cerebras Systems in a research note on Monday, June 8th. They issued a "buy" rating and a $275.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $299.30.

Cerebras Systems Stock Down 9.7%

The stock's fifty day simple moving average is $225.96.

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

Insider Activity at Cerebras Systems

In other Cerebras Systems news, CTO Sean Lie sold 10,033 shares of Cerebras Systems stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $170.07, for a total value of $1,706,312.31. Following the transaction, the chief technology officer owned 10,033 shares in the company, valued at $1,706,312.31. This trade represents a 50.00% decrease in their position. 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 10,000 shares of Cerebras Systems stock in a transaction 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 transaction, the chief operating officer owned 10,000 shares in the company, valued at approximately $2,065,100. This trade represents a 50.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 117,547 shares of company stock valued at $20,676,799 in the last ninety days.

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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