649,318 Shares of Cerebras Systems Inc. $CBRS Bought by Lunate Capital Ltd

Key Points

• Lunate Capital acquired 649,318 Cerebras shares in the third quarter, worth about $115.4 million. The holding represents 0.27% of Cerebras and 16.1% of Lunate’s portfolio, its second-largest position.
• Several other institutional investors also established new positions. Separately, Cerebras shares opened at $93.66 and were reported down 3.1%.
• Investor risks include analyst price-target cuts, potential selling after the IPO lockup expires, and ongoing losses; Cerebras is due to report third-quarter results Nov. 12. The article also notes a Bilt AI infrastructure deal serving a potential audience of more than eight million members, with no financial terms disclosed.

Lunate Capital Ltd purchased a new position in shares of Cerebras Systems Inc. (NASDAQ:CBRS - Free Report) in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 649,318 shares of the company's stock, valued at approximately $115,351,000. Cerebras Systems comprises about 16.1% of Lunate Capital Ltd's investment portfolio, making the stock its 2nd largest position. Lunate Capital Ltd owned 0.27% of Cerebras Systems as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of CBRS. Wealth Enhancement Trust Services Inc. purchased a new stake in Cerebras Systems during the 3rd quarter worth approximately $26,000. Blue Bell Private Wealth Management LLC acquired a new position in shares of Cerebras Systems during the third quarter valued at approximately $31,000. GK Wealth Management LLC acquired a new position in shares of Cerebras Systems during the third quarter valued at approximately $31,000. Silicon Valley Capital Partners purchased a new position in shares of Cerebras Systems in the second quarter valued at approximately $44,000. Finally, Torren Management LLC purchased a new position in shares of Cerebras Systems in the third quarter valued at approximately $39,000.

More Cerebras Systems News

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

• Positive Sentiment: Bilt selected Cerebras’ AI infrastructure for its Neighborhood OS and Bilt Concierge, services intended for more than eight million members. The deal provides a customer-validation point, though no financial terms were disclosed. Bilt selects Cerebras
• Neutral Sentiment: Pre-earnings commentary sees potential for strong AI-inference demand and cloud adoption, and Wedbush expects a modest beat and raise. However, margin pressure, ongoing losses, and valuation remain concerns; Q3 results are due Nov. 12. Q3 earnings outlook
• Negative Sentiment: Analyst price-target reductions may weigh on sentiment: Wedbush reportedly cut its target by $100, while Morgan Stanley lowered its target from $279 to $178 but kept an Overweight rating. Wedbush target cut
• Negative Sentiment: The IPO lockup expiration could allow early shareholders to sell, increasing potential share supply ahead of earnings. Lockup expiration
• Negative Sentiment: Pomerantz LLP announced an investigation into claims on behalf of Cerebras investors, adding legal uncertainty. The announcement does not establish wrongdoing. Pomerantz investigation announcement

Cerebras Systems Trading Down 3.1%

CBRS stock opened at $93.66 on Wednesday. The company has a debt-to-equity ratio of 0.02, a current ratio of 5.82 and a quick ratio of 5.80. The company has a 50-day simple moving average of $155.82. Cerebras Systems Inc. has a 12 month low of $77.84 and a 12 month high of $386.34.

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

Analyst Ratings Changes

A number of analysts have recently issued reports on CBRS shares. Morgan Stanley lowered their price target on Cerebras Systems from $279.00 to $178.00 and set an "overweight" rating on the stock in a research note on Monday. Rosenblatt Securities reissued a "buy" rating and issued a $300.00 price objective on shares of Cerebras Systems in a research note on Wednesday, August 19th. Mizuho decreased their price objective on Cerebras Systems from $310.00 to $300.00 and set an "outperform" rating on the stock in a report on Thursday, August 13th. Weiss Ratings cut shares of Cerebras Systems from a "sell (d)" rating to a "sell (d-)" rating in a research note on Wednesday, November 4th. Finally, Wall Street Zen raised shares of Cerebras Systems from a "sell" rating to a "hold" rating in a report on Saturday, August 15th. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $261.80.

Insider Transactions at Cerebras Systems

In related news, CTO Sean Lie sold 60,000 shares of the stock in a transaction that occurred on Tuesday, October 27th. The stock was sold at an average price of $115.79, for a total value of $6,947,400.00. Following the completion of the sale, the chief technology officer owned 263,592 shares of the company's stock, valued at approximately $30,521,317.68. This trade represents a 18.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Yagnesh Patel sold 1,320 shares of Cerebras Systems stock in a transaction that occurred on Monday, September 28th. The stock was sold at an average price of $204.50, for a total value of $269,940.00. Following the transaction, the chief accounting officer owned 15,356 shares in the company, valued at approximately $3,140,302. The trade was a 7.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 1,924,452 shares of company stock valued at $394,628,154.

About Cerebras Systems

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.

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