Cerebras Systems (NASDAQ:CBRS) Trading Down 4.2% - Should You Sell?

Key Points

• Cerebras Systems shares fell 4.2% on Friday, trading as low as $162.35 before last changing hands at $172.86, below the prior close of $180.46.
• Wall Street remains broadly positive: several analysts reiterated or initiated buy/outperform ratings, and the consensus price target is about $299.30, well above the current price.
• The company recently beat quarterly expectations, reporting a smaller-than-expected loss of $0.04 per share and revenue of $193.41 million, while insiders also sold shares in transactions tied to tax withholding on vested equity awards.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report)'s stock price traded down 4.2% during trading on Friday . The stock traded as low as $162.35 and last traded at $172.86. Approximately 5,252,538 shares traded hands during mid-day trading, a decline of 28% from the average session volume of 7,254,104 shares. The stock had previously closed at $180.46.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on CBRS shares. Needham & Company LLC reaffirmed a "buy" rating and set a $300.00 price target on shares of Cerebras Systems in a research note on Wednesday, June 24th. Craig Hallum began 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. Rosenblatt Securities reaffirmed a "buy" rating and issued a $300.00 price objective on shares of Cerebras Systems in a report on Wednesday, June 24th. UBS Group boosted their price objective on shares of Cerebras Systems from $300.00 to $320.00 and gave the company a "buy" rating in a research report on Wednesday, June 24th. Finally, Mizuho started coverage on Cerebras Systems in a research report on Monday, June 8th. They set an "outperform" rating and a $300.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $299.30.

Cerebras Systems Stock Down 4.2%

The firm's fifty day simple moving average is $224.02.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last issued its quarterly earnings data 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 company had revenue of $193.41 million for the quarter, compared to the consensus estimate of $180.70 million.

Insider Transactions at Cerebras Systems

In other news, CEO Andrew D. Feldman sold 17,990 shares of the company's stock in a transaction on Thursday, June 25th. The stock was sold at an average price of $173.06, for a total value of $3,113,349.40. Following the completion of the sale, 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 ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Sean Lie sold 10,033 shares of the firm's stock in a transaction dated 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 directly owned 10,033 shares of the company's stock, valued at $1,706,312.31. 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. In the last 90 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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