Cerebras Systems (NASDAQ:CBRS) Stock Price Up 17.9% - Still a Buy?

Key Points

• Cerebras Systems stock jumped 17.9% on Tuesday, trading as high as $210.64 after closing at $176.88 the prior day, with volume slightly below average.
• Recent analyst coverage has been broadly positive, with multiple firms issuing Buy ratings and price targets ranging from $275 to $340; the consensus target is $299.30.
• The company also reported a smaller-than-expected loss of $0.04 per share and revenue of $193.41 million, both beating Wall Street estimates, though several insiders recently sold shares.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report)'s share price shot up 17.9% during trading on Tuesday . The company traded as high as $210.64 and last traded at $208.57. 6,189,864 shares traded hands during trading, a decline of 13% from the average session volume of 7,151,940 shares. The stock had previously closed at $176.88.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on CBRS. TD Cowen assumed coverage on Cerebras Systems in a research report on Monday, June 8th. They set a "buy" rating and a $275.00 target price for the company. Citigroup assumed coverage on Cerebras Systems in a research report on Monday, June 8th. They issued a "buy" rating and a $340.00 price target on the stock. Wedbush upped their price objective on shares of Cerebras Systems from $270.00 to $280.00 and gave the stock an "outperform" rating in a research report on Wednesday, June 24th. Needham & Company LLC reiterated a "buy" rating and set a $300.00 price objective on shares of Cerebras Systems in a research note on Wednesday, June 24th. Finally, Rosenblatt Securities reissued a "buy" rating and issued a $300.00 target price on shares of Cerebras Systems in a report on Wednesday, June 24th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $299.30.

Cerebras Systems Stock Performance

The business's 50-day moving average is $221.93.

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, beating analysts' consensus estimates 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.

Insiders Place Their Bets

In other Cerebras Systems news, CAO Yagnesh Patel sold 3,954 shares of the business's stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $174.03, for a total transaction of $688,114.62. Following the completion of the transaction, the chief accounting officer owned 3,954 shares of the company's stock, valued at approximately $688,114.62. The trade was a 50.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CTO Sean Lie sold 10,033 shares of the 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 completion of the transaction, the chief technology officer directly owned 10,033 shares of the company's stock, valued at $1,706,312.31. This trade represents 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. Over the last ninety days, insiders 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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