10,439 Shares in Cerebras Systems Inc. $CBRS Bought by Revolve Wealth Partners LLC

Key Points

• Revolve Wealth Partners purchased 10,439 Cerebras Systems shares worth approximately $1.85 million, joining several major institutions that recently initiated positions in CBRS.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and average price target of $289.90, although TD Cowen reduced its target to $175.
• Cerebras reported 74.3% year-over-year revenue growth to $209.87 million but significantly missed EPS expectations, while the stock has fallen sharply from its 52-week high and insiders sold roughly $387.7 million of shares over the last quarter.

Revolve Wealth Partners LLC purchased a new stake in shares of Cerebras Systems Inc. (NASDAQ:CBRS - Free Report) during the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 10,439 shares of the company's stock, valued at approximately $1,854,000.

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

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on CBRS shares. UBS Group increased their price target on Cerebras Systems from $320.00 to $330.00 and gave the stock a "buy" rating in a research note on Thursday, August 13th. Needham & Company LLC reiterated a "buy" rating and set a $300.00 target price on shares of Cerebras Systems in a research report on Wednesday, August 19th. TD Cowen decreased their target price on Cerebras Systems from $275.00 to $175.00 and set a "buy" rating on the stock in a research note on Monday, October 19th. Weiss Ratings raised Cerebras Systems from a "sell (d-)" rating to a "sell (d)" rating in a report on Wednesday. Finally, Wedbush boosted their price target on Cerebras Systems from $280.00 to $290.00 and gave the stock an "outperform" rating in a report on Thursday, August 13th. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $289.90.

Key Stories Impacting Cerebras Systems

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

• Positive Sentiment: A bullish Seeking Alpha analysis argues that the selloff has created an attractive entry point. Cerebras reported 103% year-over-year growth in second-quarter core revenue, $25.4 billion in remaining performance obligations and more than $8.6 billion in cash. Management expects 2027 core revenue to more than triple, while AMD integration could potentially increase throughput by approximately fivefold. Cerebras: I Waited For This Entry Point
• Positive Sentiment: Another analysis says Wall Street analysts continue to raise their price targets despite Cerebras Systems having fallen more than 60% since its initial public offering, implying significant potential upside if the company meets its growth forecasts. Cerebras Systems Analyst Price Target Outlook
• Neutral Sentiment: A broader AI-chip feature highlights Nvidia and Broadcom rather than Cerebras, underscoring strong industry demand but offering no direct new catalyst for CBRS. 3 Magnificent AI Chip Stocks That Could Help Set You Up for Life
• Neutral Sentiment: Market-data coverage for Cerebras Systems provided financial summary information without identifying a new company-specific development. Cerebras Systems Financial Summary
• Negative Sentiment: Zacks said Applied Optoelectronics currently has an edge over Cerebras in the AI-infrastructure race because of stronger optical demand, capacity expansion and a better earnings outlook. AAOI vs. CBRS
• Negative Sentiment: TD Cowen trimmed its price target, while a separate report cited an analyst downgrade. These actions add pressure after Cerebras missed the latest quarterly EPS consensus by a wide margin, despite 74.3% year-over-year revenue growth. Cerebras Stock Gets Price Target Trim Cerebras Stock Price Down on Analyst Downgrade

Cerebras Systems Stock Performance

Shares of NASDAQ:CBRS opened at $110.82 on Monday. The company has a market capitalization of $26.33 billion and a price-to-earnings ratio of -1,385.25. The stock's fifty day moving average is $179.68. Cerebras Systems Inc. has a fifty-two week low of $106.13 and a fifty-two week high of $386.34. The company has a current ratio of 5.82, a quick ratio of 5.80 and a debt-to-equity ratio of 0.02.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last announced its quarterly earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.21) by ($2.77). The business had revenue of $209.87 million for the quarter. The firm's quarterly revenue was up 74.3% on a year-over-year basis. As a group, research analysts predict that Cerebras Systems Inc. will post -0.52 earnings per share for the current year.

Insider Activity

In other news, CEO Andrew Feldman sold 237,559 shares of the firm's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $199.27, for a total transaction of $47,338,381.93. Following the completion of the transaction, the chief executive officer owned 16,853 shares in the company, valued at $3,358,297.31. This trade represents a 93.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Eric Vishria sold 68,268 shares of Cerebras Systems stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $229.77, for a total value of $15,685,938.36. Following the completion of the sale, the director directly owned 31,383 shares in the company, valued at $7,210,871.91. This trade represents a 68.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 1,864,452 shares of company stock valued at $387,680,754.

Cerebras Systems Company Profile

Cerebras Systems is a technology company that develops specialized computing systems for artificial intelligence and high-performance computing. Its core product is the Wafer-Scale Engine, a processor designed to provide large-scale computing capacity and high-speed data movement for training and running AI models.

The company offers integrated AI computing systems, including the Cerebras CS series, which combines its wafer-scale processors with supporting hardware and software. Cerebras also provides access to its technology through cloud-based services, enabling businesses, research organizations and other users to develop and deploy AI applications without operating the underlying systems themselves.

Founded in 2015 and headquartered in Sunnyvale, California, Cerebras serves customers in sectors such as technology, government, scientific research and other data-intensive industries.

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.