Waverly Advisors LLC Acquires Shares of 6,965 Cerebras Systems Inc. $CBRS

Key Points

• Institutional interest is growing: Waverly Advisors acquired 6,965 Cerebras Systems shares worth approximately $1.54 million in the second quarter. Several other funds, including UNC Management and Readystate Asset Management, also opened new positions.
• Analysts remain broadly bullish: Cerebras has a consensus “Moderate Buy” rating and an average price target of $299.90, with recent targets ranging from $280 to $325.
• Strong revenue growth contrasts with a major earnings miss: Second-quarter revenue rose 74.3% year over year to $209.87 million, but the company reported a loss of $2.98 per share versus the consensus loss estimate of $0.21. Insiders sold approximately $295.6 million of stock during the last quarter.

Waverly Advisors LLC bought a new position 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 and Exchange Commission. The fund bought 6,965 shares of the company's stock, valued at approximately $1,539,000.

Several other institutional investors and hedge funds also recently made changes to their positions in the business. Allianz Asset Management GmbH bought a new position in shares of Cerebras Systems in the 2nd quarter worth $508,000. Corient Private Wealth LP bought a new stake in Cerebras Systems in the second quarter valued at about $205,000. Carlson Financial Inc. bought a new stake in Cerebras Systems in the second quarter valued at about $322,000. Readystate Asset Management LP acquired a new position in Cerebras Systems in the second quarter valued at about $2,320,000. Finally, UNC Management Company Inc. acquired a new position in Cerebras Systems in the second quarter valued at about $4,439,000.

Analysts Set New Price Targets

Several research firms have recently issued reports on CBRS. Craig Hallum initiated coverage on Cerebras Systems in a research report on Monday, June 8th. They set a "buy" rating and a $325.00 target price 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. Needham & Company LLC reissued a "buy" rating and set a $300.00 price objective on shares of Cerebras Systems in a research note on Wednesday, August 19th. Barclays started coverage on shares of Cerebras Systems in a report on Monday, June 8th. They set an "overweight" rating and a $280.00 price objective for the company. Finally, Freedom Capital raised shares of Cerebras Systems to a "hold" rating in a research note on Monday, June 29th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $299.90.

Cerebras Systems Stock Performance

CBRS stock opened at $191.93 on Monday. Cerebras Systems Inc. has a 1-year low of $160.81 and a 1-year high of $386.34. The business's 50-day simple moving average is $201.89.

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

Insider Buying and Selling at Cerebras Systems

In related news, COO Dhiraj Mallick sold 38,889 shares of the stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $222.22, for a total transaction of $8,641,913.58. Following the completion of the sale, the chief operating officer directly owned 120,000 shares of the company's stock, valued at approximately $26,666,400. This represents a 24.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Andrew Feldman sold 37,441 shares of the firm's stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $210.46, for a total transaction of $7,879,832.86. Following the sale, the chief executive officer owned 16,853 shares in the company, valued at $3,546,882.38. This trade represents a 68.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,432,179 shares of company stock worth $295,596,648 in the last quarter.

Cerebras Systems Profile

Cerebras Systems develops specialized computing systems and software for artificial intelligence (AI) and machine-learning workloads. The company's technology is designed to accelerate the training and deployment of large AI models by combining high-performance processors, memory, networking and software into integrated computing platforms.

Its principal products include the Wafer-Scale Engine (WSE), a processor built on a single semiconductor wafer, and the CS-3 AI supercomputer, which is based on the company's wafer-scale architecture.

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