Cerebras Systems (NASDAQ:CBRS) Reaches New 12-Month Low - What's Next?

Key Points

• Cerebras Systems shares fell 7.3% to a new 52-week low of $155.50, well below the 50-day moving average of $199.54.
• Analyst sentiment remains broadly positive, with an average “Moderate Buy” rating and a $299.90 price target, despite several recent target reductions.
• The company reported quarterly revenue of $209.87 million, up 74.3% year over year, but its $2.98 adjusted loss per share significantly missed the $0.21 consensus estimate. Insiders also sold $387.7 million worth of shares in the last quarter.

Shares of Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report) reached a new 52-week low during mid-day trading on Monday. The company traded as low as $155.50 and last traded at $152.4270, with a volume of 2,101,527 shares changing hands. The stock had previously closed at $164.17.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on CBRS shares. Weiss Ratings cut Cerebras Systems from a "sell (d)" rating to a "sell (d-)" rating in a report on Friday, September 25th. Wedbush lifted their price objective on Cerebras Systems from $280.00 to $290.00 and gave the stock an "outperform" rating in a report on Thursday, August 13th. 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. Freedom Capital upgraded Cerebras Systems from a "hold" rating to a "strong-buy" rating in a research report on Friday, October 2nd. Finally, Citigroup lowered their target price on Cerebras Systems from $340.00 to $320.00 and set a "buy" rating on the stock in a report on Thursday, August 13th. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Cerebras Systems presently has an average rating of "Moderate Buy" and an average price target of $299.90.

Cerebras Systems Trading Down 7.3%

The firm has a market capitalization of $36.16 billion and a P/E ratio of -1,896.19. The company has a 50 day simple moving average of $199.54. The company has a current ratio of 5.82, a quick ratio of 5.80 and a debt-to-equity ratio of 0.02.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The company reported ($2.98) 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% compared to the same quarter last year. On average, equities research analysts expect that Cerebras Systems Inc. will post -0.52 earnings per share for the current fiscal year.

Insider Transactions at Cerebras Systems

In other news, CTO Sean Lie sold 120,000 shares of the company's stock in a transaction dated Friday, September 25th. The shares were sold at an average price of $208.97, for a total transaction of $25,076,400.00. Following the completion of the transaction, the chief technology officer owned 309,569 shares of the company's stock, valued at $64,690,633.93. This represents a 27.93% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Steven Vassallo sold 50,000 shares of the company's stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $210.30, for a total transaction of $10,515,000.00. Following the transaction, the director directly owned 171,977 shares of the company's stock, valued at approximately $36,166,763.10. This represents a 22.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,864,452 shares of company stock worth $387,680,754 in the last quarter.

Institutional Investors Weigh In On Cerebras Systems

Several hedge funds have recently modified their holdings of the stock. Value Aligned Research Advisors LLC acquired a new position in shares of Cerebras Systems in the 2nd quarter valued at $241,934,000. Wellington Management Group LLP purchased a new position in Cerebras Systems in the second quarter valued at approximately $194,853,000. State Street Corp acquired a new position in Cerebras Systems during the second quarter valued at approximately $105,343,000. Dragoneer Investment Group LLC acquired a new position in Cerebras Systems during the second quarter valued at approximately $88,400,000. Finally, Montanova Capital LLC purchased a new stake in Cerebras Systems during the second quarter worth approximately $37,990,000.

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.

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