Cerebras Systems (NASDAQ:CBRS) Shares Down 2.2% - Here's What Happened

Key Points

• Cerebras Systems shares fell 2.2% to $108.37, with trading volume slightly above average. The stock is well below its 50-day moving average of $179.68.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and an average price target of $289.90, although TD Cowen sharply reduced its target to $175 from $275.
• The company reported strong 74.3% year-over-year revenue growth to $209.87 million but missed earnings expectations significantly, while insiders sold approximately $387.7 million of shares over the past 90 days.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report)'s share price traded down 2.2% on Monday. The stock traded as low as $106.27 and last traded at $108.37. Approximately 7,709,996 shares changed hands during mid-day trading, an increase of 2% from the average daily volume of 7,581,396 shares. The stock had previously closed at $110.82.

Analysts Set New Price Targets

Several brokerages recently weighed in on CBRS. Wedbush upped their target price on shares of Cerebras Systems from $280.00 to $290.00 and gave the stock an "outperform" rating in a research note on Thursday, August 13th. TD Cowen decreased their target price on Cerebras Systems from $275.00 to $175.00 and set a "buy" rating for the company in a report on Monday, October 19th. Jefferies Financial Group upgraded Cerebras Systems to an "outperform" rating in a report on Monday, October 5th. Weiss Ratings upgraded shares of Cerebras Systems from a "sell (d-)" rating to a "sell (d)" rating in a research note on Wednesday. Finally, Morgan Stanley increased their price objective on shares of Cerebras Systems from $273.00 to $279.00 and gave the company an "overweight" rating in a research report on Thursday, August 13th. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $289.90.

Cerebras Systems Trading Down 2.2%

The company has a debt-to-equity ratio of 0.02, a quick ratio of 5.80 and a current ratio of 5.82. The firm has a market cap of $25.74 billion and a price-to-earnings ratio of -1,354.62. The company's fifty day moving average price is $179.68.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last posted its 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 company had revenue of $209.87 million during the quarter. The business's revenue was up 74.3% on a year-over-year basis. On average, research 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 news, CTO Sean Lie sold 120,000 shares of the company's stock in a transaction on Friday, September 25th. The shares were sold at an average price of $208.97, for a total value of $25,076,400.00. Following the completion of the transaction, the chief technology officer owned 309,569 shares in the company, valued at approximately $64,690,633.93. This represents a 27.93% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible 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 stock in a transaction on 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 completion of the transaction, the director directly owned 171,977 shares in the company, valued at $36,166,763.10. This trade represents a 22.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 1,864,452 shares of company stock worth $387,680,754.

Hedge Funds Weigh In On Cerebras Systems

Large investors have recently bought and sold shares of the stock. Frank Rimerman Advisors LLC lifted its holdings in shares of Cerebras Systems by 3,681.7% in 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 during the last quarter. ICG Advisors LLC grew its stake in Cerebras Systems by 179.9% during the 3rd quarter. ICG Advisors LLC now owns 15,000 shares of the company's stock worth $2,665,000 after buying an additional 9,641 shares during the last quarter. NFSG Corp grew its stake in Cerebras Systems by 1,483.7% during the 3rd quarter. NFSG Corp now owns 8,821 shares of the company's stock worth $1,567,000 after buying an additional 8,264 shares during the last quarter. Cohen Capital Management Inc. acquired a new position in Cerebras Systems during the third quarter worth approximately $1,444,000. Finally, State Street Corp acquired a new position in Cerebras Systems during the second quarter worth 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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