Wellington Management Group LLP Acquires Shares of 881,688 Cerebras Systems Inc. $CBRS

Key Points

• Wellington Management acquired 881,688 Cerebras shares worth approximately $194.9 million, giving it a 0.39% stake; several other hedge funds also initiated positions during the second quarter.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and a $299.90 price target, despite CBRS opening at $184.19 and trading well below its 12-month high of $386.34.
• Cerebras reported $209.87 million in quarterly revenue, up 74.3% year over year, but its $2.98 loss per share missed expectations by $2.77. Insiders sold roughly 1.29 million shares worth $266 million over the past three months.

Wellington Management Group LLP acquired a new position in shares of Cerebras Systems Inc. (NASDAQ:CBRS - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm acquired 881,688 shares of the company's stock, valued at approximately $194,853,000. Wellington Management Group LLP owned 0.39% of Cerebras Systems at the end of the most recent reporting period.

Other hedge funds also recently modified their holdings of the company. Bank of New York Mellon Corp bought a new stake in Cerebras Systems during the 2nd quarter worth $6,118,000. Tiger Pacific Capital LP acquired a new stake in Cerebras Systems during the 2nd quarter valued at approximately $221,000. Finally, Ratan Capital Management LP bought a new position in Cerebras Systems during the second quarter worth $4,641,000.

Analysts Set New Price Targets

A number of research firms have recently issued reports on CBRS. Morgan Stanley increased 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. TD Cowen began coverage on Cerebras Systems in a research note on Monday, June 8th. They set a "buy" rating and a $275.00 price target on the stock. Wedbush increased their target price on Cerebras Systems from $280.00 to $290.00 and gave the stock an "outperform" rating in a report on Thursday, August 13th. Rosenblatt Securities reiterated a "buy" rating and set a $300.00 price target on shares of Cerebras Systems in a research note on Wednesday, August 19th. Finally, UBS Group lifted their price objective on shares of Cerebras Systems from $320.00 to $330.00 and gave the stock a "buy" rating in a report on Thursday, August 13th. One equities research 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 currently has a consensus rating of "Moderate Buy" and a consensus price target of $299.90.

Cerebras Systems Price Performance

Shares of NASDAQ:CBRS opened at $184.19 on Tuesday. The company's 50 day moving average price is $203.51. Cerebras Systems Inc. has a 12 month low of $160.81 and a 12 month high of $386.34.

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

Insiders Place Their Bets

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

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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