Cerebras Systems (NASDAQ:CBRS) Stock Price Down 4.9% - Time to Sell?

Key Points

• Cerebras Systems shares fell 4.9% on Monday, trading as low as $203.12 before closing at $204.62, with volume well below average.
• Despite the stock pullback, Wall Street sentiment remains mostly positive: the company has a Moderate Buy rating overall, with an average price target of $299.30, and several firms recently initiated or reiterated buy/overweight ratings.
• The company recently posted better-than-expected quarterly results, reporting a smaller-than-expected loss and revenue of $193.41 million versus the $180.70 million consensus estimate, even as insiders have sold shares in recent weeks.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report)'s share price traded down 4.9% during trading on Monday . The stock traded as low as $203.12 and last traded at $204.62. Approximately 3,471,080 shares changed hands during mid-day trading, a decline of 54% from the average session volume of 7,518,809 shares. The stock had previously closed at $215.08.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on CBRS shares. Barclays assumed coverage on Cerebras Systems in a research report on Monday, June 8th. They set an "overweight" rating and a $280.00 target price for the company. Citigroup began coverage on Cerebras Systems in a research note on Monday, June 8th. They issued a "buy" rating and a $340.00 price target for the company. Wall Street Zen raised shares of Cerebras Systems from a "strong sell" rating to a "sell" rating in a report on Sunday, June 21st. Rosenblatt Securities reiterated a "buy" rating and set a $300.00 price objective on shares of Cerebras Systems in a research report on Wednesday, June 24th. Finally, TD Cowen started coverage on shares of Cerebras Systems in a report on Monday, June 8th. They issued a "buy" rating and a $275.00 target price on the stock. One 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's stock. According to MarketBeat.com, Cerebras Systems presently has an average rating of "Moderate Buy" and an average price target of $299.30.

Cerebras Systems Stock Down 4.9%

The company has a fifty day moving average price of $227.02.

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

Insider Transactions at Cerebras Systems

In related news, COO Dhiraj Mallick sold 10,000 shares of the firm's stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $206.51, for a total value of $2,065,100.00. Following the completion of the transaction, the chief operating officer directly owned 10,000 shares of the company's stock, valued at approximately $2,065,100. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Andrew D. Feldman sold 17,990 shares of the company's stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $173.06, for a total transaction of $3,113,349.40. Following the sale, the chief executive officer directly owned 17,990 shares in the company, valued at approximately $3,113,349.40. The trade was a 50.00% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 117,547 shares of company stock valued at $20,676,799 over the last 90 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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