13,609 Shares in Cerebras Systems Inc. $CBRS Acquired by Brighton Jones LLC

Key Points

• Brighton Jones acquired 13,609 Cerebras shares in the third quarter, valued at about $2.42 million. Several other institutional investors also reported new or increased positions.
• Cerebras insiders sold a combined 1.92 million shares worth approximately $394.6 million in the last quarter. The COO’s 396,000-share sale was made under a pre-arranged Rule 10b5-1 plan.
• The stock opened at $96.70, well below its 50-day average of $157.63. The latest quarter brought 74.3% year-over-year revenue growth but an EPS miss; analysts’ average rating is “Moderate Buy,” with a consensus price target of $261.80.

Brighton Jones LLC acquired a new stake in Cerebras Systems Inc. (NASDAQ:CBRS - Free Report) during the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor acquired 13,609 shares of the company's stock, valued at approximately $2,418,000.

A number of other hedge funds and other institutional investors have also modified their holdings of the company. Value Aligned Research Advisors LLC purchased a new stake in shares of Cerebras Systems during the 2nd quarter worth $241,934,000. Wellington Management Group LLP purchased a new position in Cerebras Systems in the second quarter valued at $194,853,000. State Street Corp purchased a new position in Cerebras Systems in the second quarter valued at $105,343,000. Dragoneer Investment Group LLC acquired a new stake in Cerebras Systems in the second quarter valued at $88,400,000. Finally, Sumitomo Mitsui Trust Group Inc. raised its stake in Cerebras Systems by 59.6% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 490,139 shares of the company's stock valued at $87,073,000 after buying an additional 183,035 shares in the last quarter.

Insider Buying and Selling

In other news, COO Dhiraj Mallick sold 396,000 shares of the company'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 represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Steven Vassallo sold 50,000 shares of the stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $210.30, for a total transaction of $10,515,000.00. Following the sale, the director owned 171,977 shares of the company's stock, valued at $36,166,763.10. This trade represents a 22.52% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,924,452 shares of company stock valued at $394,628,154 in the last quarter.

Cerebras Systems Stock Performance

Shares of CBRS opened at $96.70 on Tuesday. The business's 50 day simple moving average is $157.63. Cerebras Systems Inc. has a 12-month low of $77.84 and a 12-month high of $386.34. The company has a debt-to-equity ratio of 0.02, a quick ratio of 5.80 and a current ratio of 5.82.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last released its quarterly earnings results on Wednesday, August 12th. The company reported ($2.98) EPS for the quarter, missing the consensus estimate of ($0.21) by ($2.77). The company had revenue of $209.87 million for the quarter. Cerebras Systems's revenue was up 74.3% on a year-over-year basis. As a group, 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 brokerages have issued reports on CBRS. Jefferies Financial Group raised Cerebras Systems to an "outperform" rating in a report on Monday, October 5th. UBS Group dropped their price objective on Cerebras Systems from $330.00 to $250.00 and set a "buy" rating on the stock in a report on Monday, November 2nd. Weiss Ratings lowered Cerebras Systems from a "sell (d)" rating to a "sell (d-)" rating in a research report on Wednesday, November 4th. TD Cowen decreased their target price on Cerebras Systems from $275.00 to $175.00 and set a "buy" rating for the company in a research note on Monday, October 19th. Finally, Citigroup lowered their price target on Cerebras Systems from $340.00 to $320.00 and set a "buy" rating for the company in a report on Thursday, August 13th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $261.80.

Cerebras Systems Company Profile

Cerebras Systems develops computing systems and software designed for artificial intelligence and other compute-intensive workloads. Its products are built around the Wafer-Scale Engine, a large processor designed to support AI model training and inference, and include the CS-3 system and related software.

The company also offers cloud-based access to its AI computing infrastructure, giving customers a way to run AI workloads without deploying its systems on site. Its offerings are aimed at organizations developing and operating large AI models, including businesses, research institutions and public-sector customers.

Founded in 2015, Cerebras is headquartered in Sunnyvale, California.

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