Cerebras Systems (NASDAQ:CBRS) Trading Up 2.3% - Here's What Happened

Key Points

• Cerebras Systems shares rose 2.3% on Monday, trading as high as $181.94 after closing at $172.86, though volume was below average at 4.25 million shares.
• Several analysts recently raised price targets or reiterated bullish ratings, including Morgan Stanley, Citigroup, Wedbush, Needham, and TD Cowen. The stock now has an average Moderate Buy rating with an average target price of $299.30.
• The company beat quarterly earnings and revenue expectations, reporting EPS of -$0.04 versus -$0.14 expected and revenue of $193.41 million versus $180.70 million expected. Insider selling also continued, including recent sales by the CTO and CAO.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report)'s stock price traded up 2.3% during trading on Monday . The stock traded as high as $181.94 and last traded at $176.88. 4,253,864 shares were traded during mid-day trading, a decline of 41% from the average daily volume of 7,186,593 shares. The stock had previously closed at $172.86.

Analysts Set New Price Targets

A number of equities analysts recently commented on CBRS shares. Morgan Stanley lifted their price objective on Cerebras Systems from $250.00 to $273.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 24th. 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. Wedbush raised their target price on Cerebras Systems from $270.00 to $280.00 and gave the stock an "outperform" rating in a research note on Wednesday, June 24th. Needham & Company LLC reiterated a "buy" rating and set a $300.00 price target on shares of Cerebras Systems in a report on Wednesday, June 24th. Finally, TD Cowen began coverage on shares of Cerebras Systems in a research report on Monday, June 8th. They set a "buy" rating and a $275.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, Cerebras Systems currently has an average rating of "Moderate Buy" and an average target price of $299.30.

Cerebras Systems Stock Performance

The company's 50 day moving average is $222.91.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last released its quarterly 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 firm had revenue of $193.41 million for the quarter, compared to analysts' expectations of $180.70 million.

Insiders Place Their Bets

In other Cerebras Systems news, CTO Sean Lie sold 10,033 shares of Cerebras Systems stock in a transaction on Thursday, June 25th. The stock was sold at an average price of $170.07, for a total value of $1,706,312.31. Following the sale, the chief technology officer owned 10,033 shares in the company, valued at $1,706,312.31. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Yagnesh Patel sold 3,954 shares of the company's stock in a transaction on Friday, June 26th. The shares were sold at an average price of $174.03, for a total value of $688,114.62. Following the completion of the transaction, the chief accounting officer directly owned 3,954 shares in the company, valued at approximately $688,114.62. This trade represents a 50.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 117,547 shares of company stock worth $20,676,799 in the last three months.

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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