Cerebras Systems Inc. $CBRS Position Increased by Vestor Capital LLC

Key Points

• Vestor Capital sharply increased its Cerebras stake by 14,652.9% in the third quarter, ending the period with 76,715 shares valued at about $13.6 million. Several other institutional investors also established or expanded positions.
• Analysts’ consensus rating is “Moderate Buy,” with an average price target of $261.80. Recent calls were mixed: some firms maintained or raised positive ratings, while TD Cowen cut its target from $275 to $175.
• Cerebras reported quarterly revenue of $209.87 million, up 74.3% year over year, but its loss of $2.98 per share missed estimates. Insiders sold nearly 1.92 million shares worth about $394.6 million over the past 90 days.

Vestor Capital LLC grew its position in shares of Cerebras Systems Inc. (NASDAQ:CBRS - Free Report) by 14,652.9% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 76,715 shares of the company's stock after buying an additional 76,195 shares during the period. Vestor Capital LLC's holdings in Cerebras Systems were worth $13,628,000 as of its most recent SEC filing.

Several other hedge funds also recently made changes to their positions in the company. Value Aligned Research Advisors LLC bought a new stake in shares of Cerebras Systems in the 2nd quarter valued at approximately $241,934,000. Wellington Management Group LLP acquired a new position in Cerebras Systems in the second quarter worth $194,853,000. State Street Corp acquired a new position in Cerebras Systems in the second quarter worth $105,343,000. Dragoneer Investment Group LLC acquired a new position in Cerebras Systems in the second quarter worth $88,400,000. Finally, Sumitomo Mitsui Trust Group Inc. increased its stake in Cerebras Systems by 59.6% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 490,139 shares of the company's stock valued at $87,073,000 after purchasing an additional 183,035 shares during the last quarter.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. Mizuho lowered their price objective on shares of Cerebras Systems from $310.00 to $300.00 and set an "outperform" rating for the company in a research report on Thursday, August 13th. Jefferies Financial Group upgraded Cerebras Systems to an "outperform" rating in a research note on Monday, October 5th. Rosenblatt Securities reissued a "buy" rating and set a $300.00 price target on shares of Cerebras Systems in a report on Wednesday, August 19th. TD Cowen lowered their price target on shares of Cerebras Systems from $275.00 to $175.00 and set a "buy" rating for the company in a research report on Monday, October 19th. Finally, Freedom Capital raised shares of Cerebras Systems from a "hold" rating to a "strong-buy" rating in a report on Friday, October 2nd. Two equities research 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 issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $261.80.

Cerebras Systems Trading Up 7.8%

CBRS opened at $96.70 on Tuesday. The company's 50 day simple moving average is $157.63. The company has a market capitalization of $22.97 billion and a PE ratio of -1,208.75. 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 Inc. has a twelve month low of $77.84 and a twelve month high of $386.34.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last issued its quarterly earnings data 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 company had revenue of $209.87 million during the quarter. Cerebras Systems's quarterly revenue was up 74.3% compared to the same quarter last year. As a group, analysts forecast that Cerebras Systems Inc. will post -0.52 EPS for the current year.

Insider Activity at Cerebras Systems

In other news, COO Dhiraj Mallick sold 396,000 shares of the stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $204.04, for a total value of $80,799,840.00. Following the completion of the transaction, the chief operating officer 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 transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Sean Lie sold 710,247 shares of the stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $207.86, for a total value of $147,631,941.42. Following the completion of the transaction, the chief technology officer directly owned 368,926 shares of the company's stock, valued at approximately $76,684,958.36. The trade was a 65.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,924,452 shares of company stock worth $394,628,154 in the last ninety days.

Cerebras Systems 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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