Needham & Company LLC Reaffirms Buy Rating for Cerebras Systems (NASDAQ:CBRS)

Key Points

• Needham reaffirmed its Buy rating on Cerebras Systems and maintained a $300 price target, implying 36.36% upside from the previous close. Analysts have a consensus “Moderate Buy” rating with an average target of $299.90.
• Cerebras reported a quarterly loss of $2.98 per share, substantially worse than the expected $0.21 loss, although revenue increased 74.3% year over year to $209.87 million.
• The stock opened at $220.01 and has traded between $160.81 and $386.34 over the past year. Recent insider selling totaled 167,547 shares worth approximately $31.6 million, while several institutional investors established new positions.

Cerebras Systems (NASDAQ:CBRS - Get Free Report)'s stock had its "buy" rating reiterated by equities researchers at Needham & Company LLC in a research note issued on Wednesday,Benzinga reports. They currently have a $300.00 price target on the stock. Needham & Company LLC's price target points to a potential upside of 36.36% from the company's previous close.

Several other equities research analysts have also recently issued reports on the company. Morgan Stanley raised their price objective on Cerebras Systems from $273.00 to $279.00 and gave the stock an "overweight" rating in a report on Thursday, August 13th. Rosenblatt Securities reiterated a "buy" rating and issued a $300.00 target price on shares of Cerebras Systems in a research note on Thursday, August 13th. Zacks Research upgraded Cerebras Systems to a "hold" rating in a research report on Tuesday, June 9th. Barclays started 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. Finally, Wedbush lifted their price target on Cerebras Systems from $280.00 to $290.00 and gave the company an "outperform" rating in a report on Thursday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Cerebras Systems presently has a consensus rating of "Moderate Buy" and an average target price of $299.90.

Cerebras Systems Stock Down 12.7%

NASDAQ:CBRS opened at $220.01 on Wednesday. The firm has a 50 day moving average price of $209.37. Cerebras Systems has a 1-year low of $160.81 and a 1-year high of $386.34.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last announced its earnings results 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 company had revenue of $209.87 million for the quarter. The business's revenue for the quarter was up 74.3% on a year-over-year basis. Research analysts anticipate that Cerebras Systems will post -0.52 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CAO Yagnesh Patel sold 6,079 shares of the stock in a transaction on Thursday, June 25th. The stock was sold at an average price of $171.53, for a total value of $1,042,730.87. Following the transaction, the chief accounting officer directly owned 4,000 shares of the company's stock, valued at approximately $686,120. This trade represents a 60.31% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Andrew D. Feldman sold 17,990 shares of the stock in a transaction on Thursday, June 25th. The stock was sold at an average price of $173.06, for a total value of $3,113,349.40. Following the completion of the transaction, the chief executive officer directly owned 17,990 shares in the company, valued at $3,113,349.40. This trade represents a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 167,547 shares of company stock worth $31,585,799 over the last 90 days.

Institutional Investors Weigh In On Cerebras Systems

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Bank of New York Mellon Corp purchased a new position in shares of Cerebras Systems in the 2nd quarter worth about $6,118,000. Ratan Capital Management LP purchased a new stake in shares of Cerebras Systems during the 2nd quarter worth about $4,641,000. Finally, Tiger Pacific Capital LP purchased a new stake in shares of Cerebras Systems during the 2nd quarter worth about $221,000.

Key Headlines Impacting Cerebras Systems

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

• Positive Sentiment: Cerebras introduced the CS-4, a wafer-scale AI accelerator designed to speed real-time inference and AI chatbot responses. The company says the platform can outperform GPU-based systems by as much as 30 times in certain workloads, strengthening its positioning as enterprises shift from AI training toward latency-sensitive inference. Cerebras Unveils CS-4
• Positive Sentiment: The CS-4 launch builds on Cerebras’ reported inference advantage, with the company citing speeds up to 14 times faster than conventional systems. Potential relationships involving OpenAI, AMD and Amazon Web Services provide possible distribution and demand catalysts. Cerebras launches new server chip and system
• Positive Sentiment: Earlier optimism about progress toward a potentially much larger OpenAI arrangement—reportedly worth up to $20 billion—helped drive investor interest. Such a deal could materially improve Cerebras’ revenue visibility if finalized. Wedbush flags bigger OpenAI deal opportunity
• Neutral Sentiment: The new product is strategically important, but the reported 20-to-30-times performance comparisons are company claims and may apply only to specific inference workloads. Investors will likely look for independent benchmarks, customer commitments and evidence of scalable production before assigning the CS-4 significant value.
• Negative Sentiment: Director Steven Vassallo sold 50,000 shares for approximately $10.9 million, cutting his reported holdings by 50.2%. The filing does not explain the sale, but the transaction can weigh on sentiment during a volatile period. SEC Form 4 insider sale
• Negative Sentiment: Cerebras’ latest quarterly results included a loss of $2.98 per share, far worse than the expected $0.21 loss, despite revenue of approximately $209.9 million growing 74.3% year over year. The substantial earnings miss and ongoing losses leave the stock vulnerable to selling when enthusiasm around new products fades.

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.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source