Cerebras Systems (NASDAQ:CBRS) Stock Falls 2% Following Analyst Downgrade

Key Points

• Cerebras Systems shares fell 2% after TD Cowen cut its price target from $275 to $175, though the firm maintained a Buy rating. Trading volume was about 22% above average.
• Analyst sentiment remains broadly positive, with the stock carrying a Moderate Buy consensus and an average price target of $289.90, despite recent target reductions and mixed ratings.
• Insiders sold 1.86 million shares worth approximately $387.7 million over the past quarter, while several major institutional investors established new positions during the second quarter.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report) shares were down 2% on Tuesday after TD Cowen lowered their price target on the stock from $275.00 to $175.00. TD Cowen currently has a buy rating on the stock. Cerebras Systems traded as low as $116.22 and last traded at $118.24. Approximately 9,201,629 shares changed hands during trading, an increase of 22% from the average session volume of 7,516,375 shares. The stock had previously closed at $120.66.

CBRS has been the topic of several other reports. Citigroup lowered their price objective on Cerebras Systems from $340.00 to $320.00 and set a "buy" rating on the stock in a research report on Thursday, August 13th. Jefferies Financial Group raised Cerebras Systems to an "outperform" rating in a report on Monday, October 5th. Rosenblatt Securities restated a "buy" rating and issued a $300.00 price target on shares of Cerebras Systems in a research note on Wednesday, August 19th. Weiss Ratings cut Cerebras Systems from a "sell (d)" rating to a "sell (d-)" rating in a research note on Friday, September 25th. Finally, Wall Street Zen raised Cerebras Systems from a "sell" rating to a "hold" rating in a report on Saturday, August 15th. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Cerebras Systems presently has an average rating of "Moderate Buy" and an average target price of $289.90.

Insider Activity at Cerebras Systems

In other Cerebras Systems news, Director Eric Vishria sold 68,268 shares of the business's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $229.77, for a total transaction of $15,685,938.36. Following the completion of the sale, the director directly owned 31,383 shares in the company, valued at approximately $7,210,871.91. The trade was a 68.51% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 value of $10,515,000.00. Following the transaction, the director directly owned 171,977 shares in the company, valued at $36,166,763.10. The trade was a 22.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 1,864,452 shares of company stock valued at $387,680,754 over the last quarter.

Institutional Trading of Cerebras Systems

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

Cerebras Systems Stock Performance

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 capitalization of $28.09 billion and a PE ratio of -1,478.00. The firm's 50-day simple moving average is $189.49.

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 company had revenue of $209.87 million during the quarter. The firm's quarterly revenue was up 74.3% compared to the same quarter last year. As a group, equities research analysts expect that Cerebras Systems Inc. will post -0.52 earnings per share for the current year.

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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