Cerebras Systems (NASDAQ:CBRS) Shares Up 14.7% - Still a Buy?

Key Points

• Cerebras Systems shares surged 14.7% in mid-day trading to about $194.37, although trading volume was 83% below the stock’s average daily volume.
• Analysts remain broadly positive, with a “Moderate Buy” consensus from MarketBeat and an average price target of $300.30; individual targets range from $275 to $340.
• The company exceeded quarterly expectations, reporting an adjusted loss of $0.04 per share versus estimates of $0.14 and revenue of $193.41 million versus $180.70 million expected. Insiders have nevertheless sold $20.7 million of stock over the past 90 days, reportedly to cover tax obligations on vested equity awards.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report)'s stock price rose 14.7% during mid-day trading on Thursday . The company traded as high as $191.49 and last traded at $194.3670. 1,207,513 shares changed hands during trading, a decline of 83% from the average daily volume of 7,011,002 shares. The stock had previously closed at $169.39.

Analyst Upgrades and Downgrades

Several research analysts have commented on CBRS shares. Barclays assumed coverage on shares of Cerebras Systems in a research report on Monday, June 8th. They set an "overweight" rating and a $280.00 price objective for the company. Rosenblatt Securities reissued a "buy" rating and issued a $300.00 price target on shares of Cerebras Systems in a research note on Wednesday, June 24th. Wedbush boosted their target price 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. TD Cowen started coverage on Cerebras Systems in a research report on Monday, June 8th. They set a "buy" rating and a $275.00 target price on the stock. Finally, Citigroup began coverage on Cerebras Systems in a report on Monday, June 8th. They issued a "buy" rating and a $340.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $300.30.

Cerebras Systems Stock Up 16.9%

The business's 50 day moving average is $212.95.

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

Insider Buying and Selling

In other Cerebras Systems news, CAO Yagnesh Patel sold 6,079 shares of the business's stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $171.53, for a total transaction of $1,042,730.87. Following the completion of the sale, the chief accounting officer directly owned 4,000 shares of the company's stock, valued at approximately $686,120. The trade was a 60.31% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Andrew D. Feldman sold 17,990 shares of the firm's stock in a transaction that occurred on 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 completion of the transaction, the chief executive officer owned 17,990 shares in the company, valued at $3,113,349.40. This represents a 50.00% decrease in their position. 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 have sold a total of 117,547 shares of company stock worth $20,676,799 over the last 90 days.

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.

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