Cerebras Systems (NASDAQ:CBRS) Shares Up 1.7% - What's Next?

Key Points

• Cerebras Systems shares rose 1.7% to $110.82 in Friday trading, with volume essentially in line with its average. The company has a $26.33 billion market capitalization and trades well below its 50-day moving average of $181.84.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $289.90, despite recent target-price reductions from TD Cowen and Citigroup.
• Cerebras reported $209.87 million in quarterly revenue, up 74.3% year over year, but missed EPS estimates by a wide margin. Insiders sold 1.86 million shares worth approximately $387.7 million during the last quarter.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report) shares were up 1.7% during trading on Friday. The stock traded as high as $114.65 and last traded at $110.82. 7,564,544 shares changed hands during mid-day trading, a decline of 0% from the average daily volume of 7,573,979 shares. The stock had previously closed at $108.94.

Analysts Set New Price Targets

Several brokerages have commented on CBRS. TD Cowen decreased their target price on shares of Cerebras Systems from $275.00 to $175.00 and set a "buy" rating on the stock in a research report on Monday. Jefferies Financial Group upgraded shares of Cerebras Systems to an "outperform" rating in a research note on Monday, October 5th. Citigroup decreased their price objective on shares of Cerebras Systems from $340.00 to $320.00 and set a "buy" rating on the stock in a report on Thursday, August 13th. Freedom Capital upgraded shares of Cerebras Systems from a "hold" rating to a "strong-buy" rating in a research report on Friday, October 2nd. Finally, Weiss Ratings upgraded Cerebras Systems from a "sell (d-)" rating to a "sell (d)" rating in a report on Wednesday. Two equities research 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 issued a Sell rating to the company. According to data from MarketBeat, Cerebras Systems has a consensus rating of "Moderate Buy" and an average price target of $289.90.

Cerebras Systems Price Performance

The business has a 50-day moving average price of $181.84. The firm has a market cap of $26.33 billion and a P/E ratio of -1,385.25. 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 earnings results on Wednesday, August 12th. The company reported ($2.98) EPS for the quarter, missing analysts' consensus estimates of ($0.21) by ($2.77). The business had revenue of $209.87 million during the quarter. The company's revenue for the quarter was up 74.3% on a year-over-year basis. As a group, sell-side analysts forecast that Cerebras Systems Inc. will post -0.52 EPS for the current year.

Insiders Place Their Bets

In related news, COO Dhiraj Mallick sold 396,000 shares of the firm's stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $204.04, for a total transaction of $80,799,840.00. Following the sale, the chief operating officer owned 396,000 shares in the company, valued at approximately $80,799,840. This trade 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 can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew D. Feldman sold 237,559 shares of Cerebras Systems stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $199.27, for a total transaction of $47,338,381.93. Following the completion of the sale, the chief executive officer directly owned 16,853 shares of the company's stock, valued at $3,358,297.31. The trade was a 93.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 1,864,452 shares of company stock valued at $387,680,754.

Institutional Investors Weigh In On Cerebras Systems

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

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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