Sterling Investment Advisors Ltd. Makes New $1.67 Million Investment in Cerebras Systems Inc. $CBRS

Key Points

• Sterling Investment Advisors initiated a $1.67 million position in Cerebras Systems, while several other institutional investors also acquired significant stakes during the second quarter.
• Analysts maintain a generally positive outlook, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $299.90.
• Cerebras shares opened at $199.77 after declining 4.9%; the company missed quarterly EPS expectations despite 74.3% year-over-year revenue growth, while insiders sold approximately $295.6 million in stock over the past quarter.

Sterling Investment Advisors Ltd. bought a new stake in Cerebras Systems Inc. (NASDAQ:CBRS - Free Report) in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm bought 7,565 shares of the company's stock, valued at approximately $1,672,000.

Several other institutional investors and hedge funds have also recently bought and sold shares of CBRS. Value Aligned Research Advisors LLC acquired a new stake in Cerebras Systems in the 2nd quarter valued at about $241,934,000. Wellington Management Group LLP purchased a new stake in shares of Cerebras Systems during the second quarter worth approximately $194,853,000. Montanova Capital LLC purchased a new stake in shares of Cerebras Systems during the second quarter worth approximately $37,990,000. Bank of New York Mellon Corp acquired a new stake in Cerebras Systems in the second quarter valued at approximately $6,118,000. Finally, Ratan Capital Management LP purchased a new position in Cerebras Systems in the second quarter worth approximately $4,641,000.

Analyst Ratings Changes

Several research firms have recently issued reports on CBRS. Morgan Stanley lifted their price objective on shares of Cerebras Systems from $273.00 to $279.00 and gave the stock an "overweight" rating in a research report on Thursday, August 13th. Barclays assumed coverage on Cerebras Systems in a research note on Monday, June 8th. They issued an "overweight" rating and a $280.00 price target on the stock. Mizuho decreased their price target on Cerebras Systems from $310.00 to $300.00 and set an "outperform" rating for the company in a report on Thursday, August 13th. Zacks Research raised Cerebras Systems to a "hold" rating in a research report on Tuesday, June 9th. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $300.00 price objective on shares of Cerebras Systems in a report on Wednesday, August 19th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $299.90.

Cerebras Systems Stock Down 4.9%

Cerebras Systems stock opened at $199.77 on Wednesday. Cerebras Systems Inc. has a fifty-two week low of $160.81 and a fifty-two week high of $386.34. The firm has a 50-day moving average price of $202.92.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last announced its earnings results 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 revenue for the quarter was up 74.3% compared to the same quarter last year. On average, equities research analysts expect that Cerebras Systems Inc. will post -0.52 EPS for the current year.

Insider Buying and Selling at Cerebras Systems

In related news, CTO Sean Lie sold 710,247 shares of the firm's stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $207.86, for a total value of $147,631,941.42. Following the completion of the sale, the chief technology officer owned 368,926 shares in the company, valued at $76,684,958.36. This trade represents a 65.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Andrew Feldman sold 237,559 shares of Cerebras Systems stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $199.27, for a total value of $47,338,381.93. Following the completion of the sale, the chief executive officer owned 16,853 shares in the company, valued at approximately $3,358,297.31. This trade represents a 93.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 1,432,179 shares of company stock valued at $295,596,648.

Cerebras Systems Profile

Cerebras Systems is an artificial intelligence computing company that develops specialized hardware and software for training and running large AI models. Its technology is designed to provide high-performance computing while reducing the complexity associated with connecting large numbers of conventional processors.

The company's primary products include the Wafer Scale Engine, a processor built on a single silicon wafer, and the CS-2 and CS-3 AI systems that incorporate this technology.

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