Dhiraj Mallick Sells 38,889 Shares of Cerebras Systems (NASDAQ:CBRS) Stock

Key Points

• COO Dhiraj Mallick sold 38,889 Cerebras shares for approximately $8.64 million at an average price of $222.22, reducing his position by 24.48%. The sale was made to cover tax withholding obligations tied to vested equity awards.
• Cerebras reported a quarterly loss of $2.98 per share, far worse than the expected $0.21 loss, despite revenue rising 74.3% year over year to $209.87 million.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and a $299.90 price target, although CBRS traded near $209.85 and continued insider selling and profitability concerns present risks.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report) COO Dhiraj Mallick sold 38,889 shares of the firm's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $222.22, for a total value of $8,641,913.58. Following the transaction, the chief operating officer owned 120,000 shares of the company's stock, valued at approximately $26,666,400. The trade was a 24.48% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Dhiraj Mallick also recently made the following trade(s):

• On Tuesday, June 30th, Dhiraj Mallick sold 10,000 shares of Cerebras Systems stock. The stock was sold at an average price of $206.51, for a total value of $2,065,100.00.
• On Thursday, June 25th, Dhiraj Mallick sold 36,131 shares of Cerebras Systems stock. The shares were sold at an average price of $169.28, for a total value of $6,116,255.68.
• On Friday, June 26th, Dhiraj Mallick sold 20,000 shares of Cerebras Systems stock. The shares were sold at an average price of $173.73, for a total value of $3,474,600.00.
• On Thursday, June 25th, Dhiraj Mallick sold 13,314 shares of Cerebras Systems stock. The stock was sold at an average price of $184.89, for a total value of $2,461,625.46.

Cerebras Systems Price Performance

Shares of CBRS traded down $5.84 during mid-day trading on Thursday, hitting $209.85. 6,684,719 shares of the stock were exchanged, compared to its average volume of 7,543,250. Cerebras Systems Inc. has a 52-week low of $160.81 and a 52-week high of $386.34. The stock has a 50-day simple moving average of $208.60.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last released its quarterly earnings data on Wednesday, August 12th. The company reported ($2.98) EPS for the quarter, missing the consensus estimate of ($0.21) by ($2.77). The business had revenue of $209.87 million for the quarter. The business's quarterly revenue was up 74.3% on a year-over-year basis. On average, sell-side analysts expect that Cerebras Systems Inc. will post -0.52 earnings per share for the current year.

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. Zacks Research upgraded shares of Cerebras Systems to a "hold" rating in a research note on Tuesday, June 9th. Craig Hallum initiated coverage on Cerebras Systems in a research note on Monday, June 8th. They issued a "buy" rating and a $325.00 target price on the stock. Mizuho decreased their price target on Cerebras Systems from $310.00 to $300.00 and set an "outperform" rating for the company in a report on Thursday, August 13th. Needham & Company LLC reiterated a "buy" rating and issued a $300.00 target price on shares of Cerebras Systems in a research note on Wednesday. Finally, Rosenblatt Securities reaffirmed a "buy" rating and set a $300.00 target price on shares of Cerebras Systems in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Cerebras Systems has a consensus rating of "Moderate Buy" and a consensus price target of $299.90.

Hedge Funds Weigh In On Cerebras Systems

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CBRS. Proficio Capital Partners LLC acquired a new position in Cerebras Systems in the second quarter valued at $1,383,000. Montanova Capital LLC acquired a new position in Cerebras Systems in the second quarter valued at $37,990,000. Wellington Management Group LLP purchased a new stake in shares of Cerebras Systems in the second quarter valued at about $194,853,000. Ratan Capital Management LP acquired a new stake in shares of Cerebras Systems during the second quarter worth about $4,641,000. Finally, Tiger Pacific Capital LP purchased a new position in shares of Cerebras Systems during the second quarter worth about $221,000.

Trending Headlines about Cerebras Systems

Here are the key news stories impacting Cerebras Systems this week:

• Positive Sentiment: Cerebras and Callosum announced a partnership to deliver ultra-low-latency, heterogeneous AI inference for agentic applications. The agreement strengthens Cerebras’ position in real-time AI workloads and could expand its commercial reach if customers adopt the combined offering. Cerebras and Callosum partnership
• Positive Sentiment: The company’s CS-4 rack-scale accelerator is being promoted as up to 30 times faster than GPU-based solutions for certain inference workloads. The launch supports Cerebras’ strategy of competing with Nvidia in fast, real-time AI processing. Cerebras CS-4 announcement
• Positive Sentiment: Rosenblatt Securities and Needham reaffirmed “buy” ratings with $300 price targets. Unusually heavy call-option activity and reports of manufacturing expansion, a large backlog, and potential growth in AI inference are also supporting bullish interest.
• Neutral Sentiment: The CS-4 speed advantage is primarily a company claim and must be validated through independent benchmarks, customer deployments, and sustained sales. The technology announcement may therefore boost sentiment before materially affecting financial results.
• Negative Sentiment: CEO Andrew Feldman sold 26,644 shares worth approximately $5.9 million to cover tax withholding tied to vested equity awards. Although the stated reason reduces its significance, the sale cut his ownership by 28.5%. Cerebras CEO insider sale
• Negative Sentiment: Director Eric Vishria sold about $15.7 million of stock, while director Steven Vassallo sold approximately $10.9 million. The transactions, even where conducted under trading plans, may reinforce profit-taking concerns.
• Negative Sentiment: Cerebras recently reported a $2.98-per-share loss versus the expected $0.21 loss, despite 74.3% year-over-year revenue growth to $209.9 million. The sharp earnings miss keeps profitability and valuation as important risks for CBRS.

Cerebras Systems Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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