Cerebras Systems Inc. $CBRS Stock: Frank Rimerman Advisors LLC Raises Holdings

Key Points

• Frank Rimerman Advisors increased its Cerebras Systems stake by 3,681.7% in the third quarter, bringing its holdings to 56,271 shares worth approximately $10 million. Several other major institutional investors also initiated sizable positions.
• Analysts maintain a generally positive outlook, with Cerebras receiving a consensus “Moderate Buy” rating and an average price target of $299.90, despite mixed target-price revisions.
• Cerebras shares fell 10.5% amid significant volatility, while the company reported a quarterly EPS loss of $2.98—well below estimates—despite 74.3% year-over-year revenue growth. Insiders sold approximately $387.7 million of stock during the latest quarter.

Frank Rimerman Advisors LLC raised its position in shares of Cerebras Systems Inc. (NASDAQ:CBRS - Free Report) by 3,681.7% in the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 56,271 shares of the company's stock after acquiring an additional 54,783 shares during the period. Frank Rimerman Advisors LLC's holdings in Cerebras Systems were worth $9,997,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Value Aligned Research Advisors LLC acquired a new stake in Cerebras Systems during the 2nd quarter worth approximately $241,934,000. Wellington Management Group LLP bought a new stake in Cerebras Systems in the 2nd quarter valued at $194,853,000. State Street Corp bought a new stake in Cerebras Systems in the 2nd quarter valued at $105,343,000. Dragoneer Investment Group LLC acquired a new position in Cerebras Systems in the 2nd quarter valued at $88,400,000. Finally, Montanova Capital LLC acquired a new position in Cerebras Systems in the 2nd quarter valued at $37,990,000.

Wall Street Analysts Forecast Growth

CBRS has been the topic of several recent research reports. Freedom Capital upgraded Cerebras Systems from a "hold" rating to a "strong-buy" rating in a research report on Friday, October 2nd. Morgan Stanley boosted their target price on shares of Cerebras Systems from $273.00 to $279.00 and gave the company an "overweight" rating in a research report on Thursday, August 13th. Wedbush upped their price target on shares of Cerebras Systems from $280.00 to $290.00 and gave the company an "outperform" rating in a research note on Thursday, August 13th. Rosenblatt Securities reaffirmed a "buy" rating and set a $300.00 price target on shares of Cerebras Systems in a research report on Wednesday, August 19th. Finally, Mizuho lowered their price target on shares of Cerebras Systems from $310.00 to $300.00 and set an "outperform" rating on the stock in a research report on Thursday, August 13th. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Cerebras Systems presently has a consensus rating of "Moderate Buy" and an average price target of $299.90.

Cerebras Systems Trading Down 10.5%

NASDAQ CBRS opened at $127.21 on Friday. The company has a current ratio of 5.82, a quick ratio of 5.80 and a debt-to-equity ratio of 0.02. The firm has a market capitalization of $30.22 billion and a P/E ratio of -1,590.12. The company has a 50 day simple moving average of $191.68. Cerebras Systems Inc. has a 1-year low of $126.05 and a 1-year high of $386.34.

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

Insider Activity at Cerebras Systems

In related news, CFO Robert Patrick Jr. Komin sold 32,500 shares of the firm's stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $203.53, for a total value of $6,614,725.00. Following the transaction, the chief financial officer owned 30,670 shares in the company, valued at approximately $6,242,265.10. This trade represents a 51.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Steven Vassallo sold 50,000 shares of the business's stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $210.30, for a total value of $10,515,000.00. Following the completion of the transaction, the director directly owned 171,977 shares of the company's stock, valued at approximately $36,166,763.10. This trade represents a 22.52% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 1,864,452 shares of company stock worth $387,680,754 in the last quarter.

Cerebras Systems Company Profile

Cerebras Systems is an artificial intelligence computing company that develops specialized hardware and software for training and deploying large AI models. The company's technology is designed to address the computational demands of generative AI, deep learning and other data-intensive workloads.

Its core products include the Wafer-Scale Engine, a purpose-built AI processor produced on a single silicon wafer, and the CS-3 AI supercomputer, which incorporates that processor into an integrated computing system.

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