Value Aligned Research Advisors LLC Makes New $241.93 Million Investment in Cerebras Systems Inc. $CBRS

Key Points

• Value Aligned Research Advisors acquired 1.09 million Cerebras Systems shares worth approximately $241.9 million, representing about 0.48% of the company and 0.6% of the firm’s portfolio.
• Cerebras insiders sold heavily over the past 90 days, including CTO Sean Lie’s $147.6 million sale and director Eric Vishria’s $15.7 million sale; total insider sales reached approximately $266.0 million.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and average price target of $299.90, despite Cerebras missing quarterly EPS estimates by $2.77. Revenue rose 74.3% year over year to $209.87 million.

Value Aligned Research Advisors LLC acquired a new stake in shares of Cerebras Systems Inc. (NASDAQ:CBRS - Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 1,094,722 shares of the company's stock, valued at approximately $241,934,000. Cerebras Systems comprises 0.6% of Value Aligned Research Advisors LLC's holdings, making the stock its 27th largest position. Value Aligned Research Advisors LLC owned approximately 0.48% of Cerebras Systems as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also made changes to their positions in the company. Tiger Pacific Capital LP bought a new position in Cerebras Systems during the second quarter valued at about $221,000. TD Waterhouse Canada Inc. acquired a new stake in shares of Cerebras Systems during the 2nd quarter worth approximately $630,000. Proficio Capital Partners LLC bought a new stake in shares of Cerebras Systems during the second quarter valued at approximately $1,383,000. Situational Awareness LP acquired a new position in shares of Cerebras Systems in the second quarter valued at $2,210,000. Finally, Raiffeisen Bank International AG acquired a new position in shares of Cerebras Systems in the second quarter valued at $4,323,000.

Insider Activity

In other news, Director Eric Vishria sold 68,268 shares of the firm's stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $229.77, for a total transaction of $15,685,938.36. Following the completion of the sale, the director owned 31,383 shares of the company's stock, valued at approximately $7,210,871.91. This trade represents a 68.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible 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 Cerebras Systems stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $207.86, for a total transaction of $147,631,941.42. Following the completion of the transaction, the chief technology officer owned 368,926 shares of the company's stock, valued at $76,684,958.36. This trade represents a 65.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,291,278 shares of company stock worth $265,966,662 over the last ninety days.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the stock. Morgan Stanley lifted their price target on shares of Cerebras Systems from $273.00 to $279.00 and gave the stock an "overweight" rating in a research note on Thursday, August 13th. Craig Hallum began coverage on shares of Cerebras Systems in a report on Monday, June 8th. They set a "buy" rating and a $325.00 price objective for the company. Wall Street Zen upgraded shares of Cerebras Systems from a "sell" rating to a "hold" rating in a research report on Saturday, August 15th. TD Cowen began coverage on shares of Cerebras Systems in a research note on Monday, June 8th. They issued a "buy" rating and a $275.00 target price on the stock. Finally, Wedbush increased their price target on shares of Cerebras Systems from $280.00 to $290.00 and gave the stock an "outperform" rating in a research report on Thursday, August 13th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $299.90.

Cerebras Systems Trading Up 2.5%

Shares of NASDAQ:CBRS opened at $186.67 on Friday. The company has a fifty day moving average of $205.43. Cerebras Systems Inc. has a fifty-two week low of $160.81 and a fifty-two week 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 business had revenue of $209.87 million during the quarter. The business's quarterly revenue was up 74.3% compared to the same quarter last year. As a group, research analysts predict that Cerebras Systems Inc. will post -0.52 EPS 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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