Knollwood Investment Advisory LLC Makes New $4.58 Million Investment in Cerebras Systems Inc. $CBRS

Key Points

• Knollwood Investment Advisory acquired 20,706 Cerebras Systems shares worth approximately $4.58 million in the second quarter. Several other institutions, including Wellington Management and Montanova Capital, also initiated sizable positions.
• Cerebras insiders sold heavily, with the CEO selling 237,559 shares and a director selling 68,268 shares; insiders sold 1.29 million shares worth about $266 million over the past 90 days.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $299.90. However, Cerebras reported a quarterly loss of $2.98 per share—well below estimates—despite revenue rising 74.3% year over year to $209.87 million.

Knollwood Investment Advisory LLC bought a new stake in Cerebras Systems Inc. (NASDAQ:CBRS - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 20,706 shares of the company's stock, valued at approximately $4,576,000.

A number of other institutional investors have also recently made changes to their positions in CBRS. TD Waterhouse Canada Inc. purchased a new stake in Cerebras Systems in the 2nd quarter worth about $630,000. Proficio Capital Partners LLC purchased a new stake in Cerebras Systems during the second quarter valued at about $1,383,000. Montanova Capital LLC purchased a new stake in Cerebras Systems during the second quarter valued at about $37,990,000. Wellington Management Group LLP bought a new position in Cerebras Systems during the second quarter worth about $194,853,000. Finally, Ratan Capital Management LP bought a new position in Cerebras Systems during the second quarter worth about $4,641,000.

Insider Transactions at Cerebras Systems

In other Cerebras Systems news, Director Eric Vishria sold 68,268 shares of the firm's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $229.77, for a total value of $15,685,938.36. Following the completion of the transaction, the director directly owned 31,383 shares of the company's stock, valued at $7,210,871.91. This trade represents a 68.51% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Feldman sold 237,559 shares of the business's stock in a transaction on Friday, August 21st. The shares were sold at an average price of $199.27, for a total transaction of $47,338,381.93. Following the transaction, the chief executive officer owned 16,853 shares of the company's stock, valued at $3,358,297.31. This trade represents a 93.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 1,291,278 shares of company stock worth $265,966,662.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on CBRS shares. Zacks Research raised shares of Cerebras Systems to a "hold" rating in a research report on Tuesday, June 9th. Citigroup cut their price objective on shares of Cerebras Systems from $340.00 to $320.00 and set a "buy" rating for the company in a report on Thursday, August 13th. Wedbush lifted their price objective 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. Barclays initiated coverage on shares of Cerebras Systems in a report on Monday, June 8th. They set an "overweight" rating and a $280.00 target price on the stock. Finally, Wall Street Zen upgraded Cerebras Systems from a "sell" rating to a "hold" rating in a research report on Saturday, August 15th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $299.90.

Cerebras Systems Trading Up 3.2%

Shares of CBRS opened at $190.44 on Friday. The firm's 50-day moving average is $202.90. Cerebras Systems Inc. has a twelve month low of $160.81 and a twelve month high of $386.34.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last released 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 firm had revenue of $209.87 million for the quarter. Cerebras Systems's quarterly revenue was up 74.3% on a year-over-year basis. As a group, sell-side analysts predict that Cerebras Systems Inc. will post -0.52 earnings per share for the current fiscal year.

Cerebras Systems Company Profile

Cerebras Systems is a technology company focused on building artificial intelligence infrastructure, including hardware and software designed to accelerate deep learning and large-scale AI workloads. The company is best known for its wafer-scale processor architecture, which is intended to provide high-performance compute for training and inference applications.

In addition to its AI chips, Cerebras offers systems and related software tools that support researchers and enterprises working with machine learning models.

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