Cerebras Systems (NASDAQ:CBRS) Hits New 52-Week Low - Time to Sell?

Key Points

• Cerebras Systems shares hit a new 52-week low, falling to $105.36 and last trading near $108.24, well below the 50-day moving average of $174.99.
• Despite the selloff, analysts maintain a consensus “Moderate Buy” rating with an average price target of $289.90, although TD Cowen recently cut its target from $275 to $175.
• The company reported a quarterly loss of $2.98 per share versus the expected $0.21 loss, though revenue rose 74.3% year over year to $209.87 million; insiders also sold approximately $387.7 million in stock over the past 90 days.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report) reached a new 52-week low on Wednesday. The company traded as low as $105.36 and last traded at $108.2430, with a volume of 12,528,431 shares. The stock had previously closed at $119.31.

Analyst Ratings Changes

A number of research analysts have recently commented on CBRS shares. UBS Group increased their price target on Cerebras Systems from $320.00 to $330.00 and gave the company a "buy" rating in a research note on Thursday, August 13th. Weiss Ratings upgraded Cerebras Systems from a "sell (d-)" rating to a "sell (d)" rating in a research report on Wednesday, October 21st. TD Cowen reduced their price objective on Cerebras Systems from $275.00 to $175.00 and set a "buy" rating on the stock in a research report on Monday, October 19th. Wedbush upped 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. Finally, Wall Street Zen upgraded Cerebras Systems from a "sell" rating to a "hold" rating in a research report on Saturday, August 15th. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $289.90.

Cerebras Systems Stock Performance

The company has a quick ratio of 5.80, a current ratio of 5.82 and a debt-to-equity ratio of 0.02. The business has a fifty day moving average of $174.99. The firm has a market capitalization of $26.25 billion and a PE ratio of -1,374.95.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last released 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 firm had revenue of $209.87 million for the quarter. The business's quarterly revenue was up 74.3% compared to the same quarter last year. As a group, analysts expect that Cerebras Systems Inc. will post -0.52 earnings per share for the current fiscal year.

Insider Buying and Selling at Cerebras Systems

In other Cerebras Systems news, CTO Sean Lie sold 710,247 shares of the company's stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $207.86, for a total value of $147,631,941.42. Following the sale, the chief technology officer owned 368,926 shares in the company, valued at approximately $76,684,958.36. The trade was a 65.81% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, COO Dhiraj Mallick sold 396,000 shares of the stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $204.04, for a total value of $80,799,840.00. Following the completion of the sale, the chief operating officer directly owned 396,000 shares of the company's stock, valued at approximately $80,799,840. The trade was a 50.00% 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. Insiders sold 1,864,452 shares of company stock worth $387,680,754 over the last 90 days.

Hedge Funds Weigh In On Cerebras Systems

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Frank Rimerman Advisors LLC boosted its position in shares of Cerebras Systems by 3,681.7% during the 3rd quarter. Frank Rimerman Advisors LLC now owns 56,271 shares of the company's stock valued at $9,997,000 after purchasing an additional 54,783 shares in the last quarter. ICG Advisors LLC increased its holdings in Cerebras Systems by 179.9% in the third quarter. ICG Advisors LLC now owns 15,000 shares of the company's stock worth $2,665,000 after purchasing an additional 9,641 shares in the last quarter. NFSG Corp increased its holdings in Cerebras Systems by 1,483.7% in the third quarter. NFSG Corp now owns 8,821 shares of the company's stock worth $1,567,000 after purchasing an additional 8,264 shares in the last quarter. Cohen Capital Management Inc. bought a new stake in Cerebras Systems in the third quarter worth approximately $1,444,000. Finally, State Street Corp acquired a new position in Cerebras Systems in the second quarter valued at approximately $105,343,000.

About Cerebras Systems

Cerebras Systems is a technology company that develops specialized computing systems for artificial intelligence and high-performance computing. Its core product is the Wafer-Scale Engine, a processor designed to provide large-scale computing capacity and high-speed data movement for training and running AI models.

The company offers integrated AI computing systems, including the Cerebras CS series, which combines its wafer-scale processors with supporting hardware and software. Cerebras also provides access to its technology through cloud-based services, enabling businesses, research organizations and other users to develop and deploy AI applications without operating the underlying systems themselves.

Founded in 2015 and headquartered in Sunnyvale, California, Cerebras serves customers in sectors such as technology, government, scientific research and other data-intensive industries.

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