Cerebras Systems (NASDAQ:CBRS) Shares Up 10.1% - Here's What Happened

Key Points

• Cerebras Systems shares rose 10.1% to $119.31 in mid-day trading, with volume reaching 14.2 million shares—86% above the average daily volume.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $289.90, despite TD Cowen cutting its target to $175.
• The company reported 74.3% year-over-year revenue growth to $209.87 million but missed quarterly EPS expectations, while insiders sold approximately $387.7 million of stock over the past 90 days.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report)'s share price traded up 10.1% during mid-day trading on Tuesday. The company traded as high as $120.50 and last traded at $119.31. Approximately 14,239,073 shares traded hands during trading, an increase of 86% from the average daily volume of 7,641,579 shares. The stock had previously closed at $108.37.

Wall Street Analyst Weigh In

CBRS has been the topic of a number of recent analyst reports. TD Cowen dropped their price objective on Cerebras Systems from $275.00 to $175.00 and set a "buy" rating on the stock in a report on Monday, October 19th. Weiss Ratings raised shares of Cerebras Systems from a "sell (d-)" rating to a "sell (d)" rating in a report on Wednesday, October 21st. Needham & Company LLC reissued a "buy" rating and set a $300.00 price target on shares of Cerebras Systems in a research note on Wednesday, August 19th. Mizuho lowered their price target on Cerebras Systems from $310.00 to $300.00 and set an "outperform" rating on the stock in a report on Thursday, August 13th. Finally, Morgan Stanley raised their price objective on Cerebras Systems from $273.00 to $279.00 and gave the company an "overweight" rating in a research note on Thursday, August 13th. Two 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.com, the company currently has an average rating of "Moderate Buy" and an average target price of $289.90.

Cerebras Systems Stock Performance

The company has a debt-to-equity ratio of 0.02, a current ratio of 5.82 and a quick ratio of 5.80. The firm has a market cap of $28.34 billion and a PE ratio of -1,491.38. The business's fifty day moving average price is $179.86.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last announced 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 business had revenue of $209.87 million for the quarter. Cerebras Systems's revenue was up 74.3% compared to the same quarter last year. Sell-side analysts forecast that Cerebras Systems Inc. will post -0.52 EPS for the current fiscal year.

Insider Activity at Cerebras Systems

In other news, COO Dhiraj Mallick sold 396,000 shares of the company's stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $204.04, for a total value of $80,799,840.00. Following the sale, the chief operating officer directly owned 396,000 shares in the company, valued at $80,799,840. This represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Feldman sold 237,559 shares of the stock in a transaction 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 sale, the chief executive officer directly owned 16,853 shares in the company, valued at approximately $3,358,297.31. The trade was a 93.38% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,864,452 shares of company stock valued at $387,680,754 in the last ninety days.

Hedge Funds Weigh In On Cerebras Systems

Several institutional investors and hedge funds have recently modified their holdings of CBRS. Wealth Enhancement Trust Services Inc. purchased a new position in Cerebras Systems during the third quarter worth about $26,000. GK Wealth Management LLC acquired a new position in shares of Cerebras Systems during the 3rd quarter valued at about $31,000. Silicon Valley Capital Partners acquired a new position in shares of Cerebras Systems during the 2nd quarter valued at about $44,000. Mather Group LLC. purchased a new position in shares of Cerebras Systems during the 3rd quarter worth about $44,000. Finally, CoreCap Advisors LLC purchased a new position in shares of Cerebras Systems during the 3rd quarter worth about $52,000.

Cerebras Systems Company Profile

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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