Cerebras Systems Inc. (CBRS) - What Are Brokerages Thinking About This Stock?

Key Points

• Analysts hold a moderately bullish view: Fourteen firms give Cerebras Systems a consensus “Moderate Buy” rating, with ten buys and two strong buys. The average 12-month price target is $299.90, well above the reported $164.17 share price.
• Insiders have sold heavily: Executives sold approximately 1.86 million shares worth $387.7 million over the past 90 days, including substantial sales by the COO and CTO under pre-arranged trading plans.
• Growth remains strong but profitability is weak: Quarterly revenue rose 74.3% year over year to $209.87 million, but the company reported a $2.98 per-share loss, far worse than the expected $0.21 loss.

Shares of Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the fourteen research firms that are presently covering the company, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, one has issued a hold recommendation, ten have issued a buy recommendation and two have given a strong buy recommendation to the company. The average twelve-month price target among analysts that have issued a report on the stock in the last year is $299.90.

A number of equities research analysts have recently weighed in on CBRS shares. Needham & Company LLC reiterated a "buy" rating and issued a $300.00 price objective on shares of Cerebras Systems in a research report on Wednesday, August 19th. Wall Street Zen upgraded Cerebras Systems from a "sell" rating to a "hold" rating in a report on Saturday, August 15th. Weiss Ratings downgraded Cerebras Systems from a "sell (d)" rating to a "sell (d-)" rating in a report on Friday, September 25th. Mizuho dropped their price target on Cerebras Systems from $310.00 to $300.00 and set an "outperform" rating for the company in a research note on Thursday, August 13th. Finally, Jefferies Financial Group upgraded shares of Cerebras Systems to an "outperform" rating in a report on Monday, October 5th.

Insiders Place Their Bets

In other news, COO Dhiraj Mallick sold 396,000 shares of the firm's stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $204.04, for a total value of $80,799,840.00. Following the completion of the sale, the chief operating officer directly owned 396,000 shares of the company's stock, valued at approximately $80,799,840. This trade represents a 50.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Sean Lie sold 710,247 shares of the firm's stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $207.86, for a total transaction of $147,631,941.42. Following the completion of the sale, the chief technology officer owned 368,926 shares of the company's stock, valued at $76,684,958.36. This trade represents a 65.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 1,864,452 shares of company stock worth $387,680,754.

Hedge Funds Weigh In On Cerebras Systems

A number of institutional investors have recently added to or reduced their stakes in the company. Value Aligned Research Advisors LLC bought a new stake in Cerebras Systems during the second quarter worth about $241,934,000. Wellington Management Group LLP bought a new position in Cerebras Systems during the 2nd quarter valued at approximately $194,853,000. State Street Corp bought a new position in Cerebras Systems during the 2nd quarter valued at approximately $105,343,000. Dragoneer Investment Group LLC purchased a new position in Cerebras Systems during the second quarter valued at $88,400,000. Finally, Montanova Capital LLC purchased a new position in Cerebras Systems during the second quarter valued at $37,990,000.

Cerebras Systems Trading Down 2.2%

Cerebras Systems stock opened at $164.17 on Friday. The company has a current ratio of 5.82, a quick ratio of 5.80 and a debt-to-equity ratio of 0.02. The business's 50-day moving average price is $199.54. The stock has a market capitalization of $39.00 billion and a price-to-earnings ratio of -2,052.12. Cerebras Systems has a 1-year low of $160.81 and a 1-year high of $386.34.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last posted its earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.21) by ($2.77). The company had revenue of $209.87 million during the quarter. The firm's quarterly revenue was up 74.3% compared to the same quarter last year. Research analysts forecast that Cerebras Systems will post -0.52 earnings per share for the current fiscal year.

Cerebras Systems Company Profile

Cerebras Systems is an artificial intelligence computing company that develops specialized hardware and software for training and deploying large AI models. The company's technology is designed to address the computational demands of generative AI, deep learning and other data-intensive workloads.

Its core products include the Wafer-Scale Engine, a purpose-built AI processor produced on a single silicon wafer, and the CS-3 AI supercomputer, which incorporates that processor into an integrated computing system.

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