Stock Traders Purchase High Volume of Call Options on Cerebras Systems (NASDAQ:CBRS)

Key Points

• Options activity surged: Traders purchased 61,002 Cerebras Systems call options, 48% above the typical daily volume. The stock rose $20.56 to $211, with trading volume also exceeding its average.
• Quarterly results missed expectations: Cerebras reported a quarterly loss of $2.98 per share versus the consensus estimate of a $0.21 loss, although revenue increased 74.3% year over year to $209.87 million.
• Analysts remain broadly optimistic despite insider selling: The stock carries a “Moderate Buy” consensus rating and an average target price of $299.90, while insiders sold 1.29 million shares worth approximately $266 million over the last quarter.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report) was the target of unusually large options trading activity on Friday. Traders purchased 61,002 call options on the stock. This is an increase of 48% compared to the typical daily volume of 41,246 call options.

Cerebras Systems Price Performance

CBRS traded up $20.56 during trading on Friday, reaching $211.00. The company's stock had a trading volume of 10,700,523 shares, compared to its average volume of 7,217,026. The stock has a fifty day simple moving average of $202.90. 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 posted its quarterly 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 firm had revenue of $209.87 million during the quarter. Cerebras Systems's revenue was up 74.3% on a year-over-year basis. On average, equities analysts anticipate that Cerebras Systems will post -0.52 earnings per share for the current fiscal year.

Insider Transactions at Cerebras Systems

In other news, Director Steven Vassallo sold 50,000 shares of the business's stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $218.18, for a total value of $10,909,000.00. Following the completion of the sale, the director directly owned 49,599 shares in the company, valued at $10,821,509.82. The trade was a 50.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Andrew D. Feldman sold 237,559 shares of the stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $199.27, for a total value of $47,338,381.93. Following the transaction, the chief executive officer owned 16,853 shares in the company, valued at $3,358,297.31. This trade represents a 93.38% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,291,278 shares of company stock worth $265,966,662 over the last quarter.

Institutional Investors Weigh In On Cerebras Systems

Hedge funds and other institutional investors have recently bought and sold shares of the company. Value Aligned Research Advisors LLC purchased a new stake in shares of Cerebras Systems in the 2nd quarter valued at approximately $241,934,000. Wellington Management Group LLP purchased a new stake in shares of Cerebras Systems during the 2nd quarter valued at approximately $194,853,000. Montanova Capital LLC acquired a new position in Cerebras Systems in the second quarter valued at approximately $37,990,000. Bank of New York Mellon Corp acquired a new position in Cerebras Systems in the second quarter valued at approximately $6,118,000. Finally, Ratan Capital Management LP purchased a new position in Cerebras Systems in the second quarter worth approximately $4,641,000.

Analyst Ratings Changes

CBRS has been the topic of several research analyst reports. Wedbush lifted their target price on shares of Cerebras Systems from $280.00 to $290.00 and gave the company an "outperform" rating in a research report on Thursday, August 13th. Freedom Capital upgraded Cerebras Systems to a "hold" rating in a research note on Monday, June 29th. Mizuho decreased their target price on Cerebras Systems from $310.00 to $300.00 and set an "outperform" rating on the stock in a research report on Thursday, August 13th. Morgan Stanley lifted their price target on Cerebras Systems from $273.00 to $279.00 and gave the stock an "overweight" rating in a research note on Thursday, August 13th. Finally, Needham & Company LLC restated a "buy" rating and issued a $300.00 price objective on shares of Cerebras Systems in a report on Wednesday, August 19th. 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 assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $299.90.

About Cerebras Systems

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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