Cerebras Systems (NASDAQ:CBRS) Shares Up 7.8% - Here's What Happened

Key Points

• Cerebras shares rose 7.8% to $96.70 on Monday, with trading volume about 7% above average.
• Analysts’ average rating is “Moderate Buy” with a $261.80 average price target, though UBS, Wedbush, and Morgan Stanley recently lowered their targets.
• The company’s latest quarterly revenue increased 74.3% year over year to $209.87 million, but its $2.98 per-share loss missed the consensus estimate; insiders also sold 1.92 million shares over the past quarter.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report)'s stock price traded up 7.8% on Monday. The stock traded as high as $97.46 and last traded at $96.70. Approximately 8,473,204 shares were traded during trading, an increase of 7% from the average session volume of 7,949,795 shares. The stock had previously closed at $89.68.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on CBRS. Wall Street Zen upgraded shares of Cerebras Systems from a "sell" rating to a "hold" rating in a report on Saturday, August 15th. UBS Group reduced their target price on shares of Cerebras Systems from $330.00 to $250.00 and set a "buy" rating on the stock in a report on Monday, November 2nd. Wedbush decreased their price target on shares of Cerebras Systems from $290.00 to $190.00 and set an "outperform" rating for the company in a research report on Monday. Morgan Stanley dropped their price target on shares of Cerebras Systems from $279.00 to $178.00 and set an "overweight" rating for the company in a research note on Monday. Finally, Freedom Capital upgraded shares of Cerebras Systems from a "hold" rating to a "strong-buy" rating in a report on Friday, October 2nd. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Cerebras Systems presently has an average rating of "Moderate Buy" and an average target price of $261.80.

Cerebras Systems Stock Up 7.8%

The company has a current ratio of 5.82, a quick ratio of 5.80 and a debt-to-equity ratio of 0.02. The company has a market capitalization of $22.97 billion and a P/E ratio of -1,208.75. The company's 50 day moving average price is $159.28.

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 the consensus estimate of ($0.21) by ($2.77). The company had revenue of $209.87 million during the quarter. The firm's quarterly revenue was up 74.3% on a year-over-year basis. On average, equities analysts expect that Cerebras Systems Inc. will post -0.52 earnings per share for the current year.

Insider Activity at Cerebras Systems

In other Cerebras Systems news, CTO Sean Lie sold 60,000 shares of the stock in a transaction that occurred on Tuesday, October 27th. The stock was sold at an average price of $115.79, for a total transaction of $6,947,400.00. Following the transaction, the chief technology officer directly owned 263,592 shares in the company, valued at approximately $30,521,317.68. This represents a 18.54% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Yagnesh Patel sold 1,320 shares of the company's stock in a transaction dated Monday, September 28th. The shares were sold at an average price of $204.50, for a total transaction of $269,940.00. Following the transaction, the chief accounting officer owned 15,356 shares in the company, valued at $3,140,302. This represents a 7.92% 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 have sold 1,924,452 shares of company stock worth $394,628,154 over the last quarter.

Institutional Trading of Cerebras Systems

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. McGuire Investment Group LLC lifted its holdings in shares of Cerebras Systems by 7.6% in the 3rd quarter. McGuire Investment Group LLC now owns 1,420 shares of the company's stock worth $252,000 after purchasing an additional 100 shares in the last quarter. Wealth Enhancement Trust Services Inc. bought a new stake in Cerebras Systems during the 3rd quarter valued at $26,000. Blue Bell Private Wealth Management LLC acquired a new position in Cerebras Systems during the third quarter worth $31,000. GK Wealth Management LLC acquired a new position in Cerebras Systems during the third quarter worth $31,000. Finally, Silicon Valley Capital Partners bought a new position in shares of Cerebras Systems in the second quarter valued at $44,000.

Cerebras Systems Company Profile

Cerebras Systems develops computing systems and software designed for artificial intelligence and other compute-intensive workloads. Its products are built around the Wafer-Scale Engine, a large processor designed to support AI model training and inference, and include the CS-3 system and related software.

The company also offers cloud-based access to its AI computing infrastructure, giving customers a way to run AI workloads without deploying its systems on site. Its offerings are aimed at organizations developing and operating large AI models, including businesses, research institutions and public-sector customers.

Founded in 2015, Cerebras is headquartered in Sunnyvale, California.

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