Cerebras Systems (NASDAQ:CBRS) Stock Jumps 8.8% After Analyst Upgrade

Key Points

• Cerebras Systems shares surged 8.8% to about $181 after Jefferies upgraded the stock to “outperform.” Analysts’ consensus rating is “Moderate Buy,” with an average price target of $299.90.
• The company reported quarterly revenue of $209.87 million, up 74.3% year over year, but missed EPS expectations by $2.77 with a loss of $2.98 per share.
• Insiders have sold approximately $387.7 million worth of shares over the past 90 days, while several institutional investors—including State Street—established new positions during the second quarter.

Shares of Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report) shot up 8.8% during trading on Monday after Jefferies Financial Group upgraded the stock to an outperform rating. The stock traded as high as $184.79 and last traded at $181.0320. 4,795,897 shares traded hands during trading, a decline of 33% from the average session volume of 7,127,809 shares. The stock had previously closed at $166.43.

A number of other equities analysts have also issued reports on CBRS. Mizuho reduced their target price on shares of Cerebras Systems from $310.00 to $300.00 and set an "outperform" rating on the stock in a research report on Thursday, August 13th. Morgan Stanley upped their price target on Cerebras Systems from $273.00 to $279.00 and gave the company an "overweight" rating in a research note on Thursday, August 13th. Wall Street Zen upgraded shares of Cerebras Systems from a "sell" rating to a "hold" rating in a report on Saturday, August 15th. TD Cowen began coverage on shares of Cerebras Systems in a report on Monday, June 8th. They issued a "buy" rating and a $275.00 target price on the stock. Finally, Citigroup decreased their price target on shares of Cerebras Systems from $340.00 to $320.00 and set a "buy" rating for the company in a report on Thursday, August 13th. Two 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's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $299.90.

Insiders Place Their Bets

In other Cerebras Systems news, CAO Yagnesh Patel sold 1,320 shares of the business's stock in a transaction that occurred on Monday, September 28th. The stock was sold at an average price of $204.50, for a total value of $269,940.00. Following the sale, the chief accounting officer owned 15,356 shares in the company, valued at approximately $3,140,302. The trade was a 7.92% decrease in their position. The transaction was disclosed in a legal 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 Cerebras Systems stock in a transaction that occurred 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 sale, the director 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,864,452 shares of company stock worth $387,680,754 in the last 90 days.

Hedge Funds Weigh In On Cerebras Systems

A number of large investors have recently modified their holdings of CBRS. State Street Corp acquired a new position in Cerebras Systems during the second quarter valued at approximately $105,343,000. Situational Awareness LP acquired a new position in shares of Cerebras Systems during the 2nd quarter worth approximately $2,210,000. Proficio Capital Partners LLC acquired a new position in shares of Cerebras Systems during the 2nd quarter worth approximately $1,383,000. Ratan Capital Management LP bought a new stake in shares of Cerebras Systems during the 2nd quarter worth approximately $4,641,000. Finally, UNC Management Company Inc. acquired a new stake in shares of Cerebras Systems in the 2nd quarter valued at approximately $4,439,000.

Cerebras Systems Price 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 company's 50 day simple moving average is $201.27. The stock has a market capitalization of $43.11 billion and a price-to-earnings ratio of -2,262.50.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last posted 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. The company's quarterly revenue was up 74.3% compared to the same quarter last year. Analysts anticipate that Cerebras Systems Inc. will post -0.52 EPS for the current fiscal year.

Cerebras Systems Company Profile

Cerebras Systems is an artificial intelligence computing company that develops specialized hardware and software for training and deploying large AI models. The company's technology is designed to address the computational demands of generative AI, deep learning and other data-intensive workloads.

Its core products include the Wafer-Scale Engine, a purpose-built AI processor produced on a single silicon wafer, and the CS-3 AI supercomputer, which incorporates that processor into an integrated computing system.

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