Insider Selling: Cerebras Systems (NASDAQ:CBRS) COO Sells 396,000 Shares of Stock

Key Points

• Cerebras COO Dhiraj Mallick sold 396,000 shares at an average price of $204.04, generating approximately $80.8 million and reducing his ownership by 50%. The transaction was conducted under a pre-arranged Rule 10b5-1 plan.
• Cerebras shares fell to $177.65, while the company reported a quarterly loss of $2.98 per share, substantially below the consensus estimate of a $0.21 loss, despite 74.3% year-over-year revenue growth to $209.87 million.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $299.90, although concerns include insider selling, a large share unlock, and uncertainty over customer demand and competition from NVIDIA.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report) COO Dhiraj Mallick sold 396,000 shares of Cerebras Systems stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $204.04, for a total transaction of $80,799,840.00. Following the sale, the chief operating officer owned 396,000 shares of the company's stock, valued at approximately $80,799,840. This trade represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Dhiraj Mallick also recently made the following trade(s):

• On Tuesday, August 18th, Dhiraj Mallick sold 38,889 shares of Cerebras Systems stock. The shares were sold at an average price of $222.22, for a total transaction of $8,641,913.58.

Cerebras Systems Stock Performance

NASDAQ CBRS traded down $17.30 during mid-day trading on Wednesday, reaching $177.65. 13,826,933 shares of the stock were exchanged, compared to its average volume of 7,047,298. Cerebras Systems Inc. has a 1-year low of $160.81 and a 1-year high of $386.34. The firm's fifty day simple moving average is $203.58. The firm has a market capitalization of $42.20 billion and a PE ratio of -2,220.62. The company has a debt-to-equity ratio of 0.02, a current ratio of 5.82 and a quick ratio of 5.80.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last issued its quarterly earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share 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 revenue for the quarter was up 74.3% on a year-over-year basis. On average, analysts anticipate that Cerebras Systems Inc. will post -0.52 EPS for the current year.

Analyst Ratings Changes

Several research firms recently weighed in on CBRS. Wedbush increased their target price on Cerebras Systems from $280.00 to $290.00 and gave the stock an "outperform" rating in a research report on Thursday, August 13th. Craig Hallum started coverage on shares of Cerebras Systems in a research note on Monday, June 8th. They set a "buy" rating and a $325.00 price objective for the company. UBS Group raised their target price on shares of Cerebras Systems from $320.00 to $330.00 and gave the stock a "buy" rating in a research report on Thursday, August 13th. Citigroup dropped their price target on shares of Cerebras Systems from $340.00 to $320.00 and set a "buy" rating for the company in a research report on Thursday, August 13th. Finally, Zacks Research raised shares of Cerebras Systems to a "hold" rating in a research note on Tuesday, June 9th. One investment 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 issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $299.90.

Cerebras Systems News Summary

Here are the key news stories impacting Cerebras Systems this week:

• Positive Sentiment: New customer wins support inference growth. General Compute selected Cerebras to provide ultra-fast inference for agentic coding, expanding the company’s potential AI workload base. General Compute Selects Cerebras to Bring Ultra-Fast Inference to Agentic Coding
• Positive Sentiment: Gimlet Labs partnership adds another bullish catalyst. Reports tied the partnership to a sharp intraday gain, suggesting investors view Cerebras’ technology and software ecosystem as increasingly relevant to AI infrastructure demand. Cerebras Systems Stock Rises on Gimlet Labs Partnership
• Positive Sentiment: Backlog and capacity expansion remain long-term positives. Cerebras reportedly has a $25.4 billion backlog, while expanding data-center capacity and improving margins could help it compete with NVIDIA and AMD if demand converts into revenue. CBRS Backlog Rides on Strong AI Demand
• Neutral Sentiment: Options activity increased. Investors purchased about 45,379 call options, roughly 14% above average call volume, indicating heightened speculative interest but not guaranteeing a sustained rally.
• Neutral Sentiment: Analysts remain divided on the investment case. Commentary highlights Cerebras’ rapid AI growth and backlog, but also questions whether benchmark advantages translate into durable competitive strength. Revenue growth has been strong year over year, although recent sequential performance lagged Nebius. Cerebras Systems Benchmark Numbers Do Not Make This a Winner
• Negative Sentiment: A 19.4 million-share unlock is pressuring the stock. The newly available shares increase potential supply and dilution-related selling pressure. Cerebras Stock Falls as Share Unlock Hits
• Negative Sentiment: Reports that OpenAI may be shifting workloads toward NVIDIA chips weakened the bullish narrative. Investors are concerned that OpenAI’s latest model is not running on Cerebras hardware and that a reported OpenAI-NVIDIA partnership could limit Cerebras’ customer momentum. Cerebras Stock Plunges on OpenAI-NVIDIA Partnership Reports
• Negative Sentiment: Insider selling added to investor caution. CTO Sean Lie sold 120,000 shares worth approximately $25.1 million under a pre-arranged Rule 10b5-1 plan, reducing his holdings by about 28%. Cerebras CTO Share Sale

Institutional Investors Weigh In On Cerebras Systems

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Silicon Valley Capital Partners acquired a new position in shares of Cerebras Systems in the 2nd quarter valued at about $44,000. IFP Advisors Inc acquired a new stake in Cerebras Systems during the 2nd quarter worth approximately $169,000. Integrated Wealth Concepts LLC acquired a new stake in Cerebras Systems during the 2nd quarter worth approximately $197,000. Corient Private Wealth LP purchased a new position in Cerebras Systems in the second quarter valued at approximately $205,000. Finally, Tiger Pacific Capital LP acquired a new position in Cerebras Systems during the second quarter valued at approximately $221,000.

Cerebras Systems Company Profile

Cerebras Systems is an artificial intelligence computing company that develops specialized hardware and software for training and deploying large AI models. The company's technology is designed to address the computational demands of generative AI, deep learning and other data-intensive workloads.

Its core products include the Wafer-Scale Engine, a purpose-built AI processor produced on a single silicon wafer, and the CS-3 AI supercomputer, which incorporates that processor into an integrated computing system.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.