Cerebras Systems (NASDAQ:CBRS) Stock Price Down 5.1% - Should You Sell?

Key Points

• Cerebras Systems shares fell 5.1% to $120.66 in heavy trading, with volume 53% above its average; the stock is also well below its 50-day moving average of $191.68.
• Despite the decline, analysts remain broadly positive, assigning the stock a “Moderate Buy” consensus rating and an average price target of $299.90, though the company recently reported a significantly wider-than-expected quarterly loss.
• Insiders sold approximately 1.86 million shares worth $387.7 million last quarter, while several institutional investors—including State Street—established or increased positions.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report) fell 5.1% on Monday. The stock traded as low as $120.12 and last traded at $120.66. 11,525,599 shares changed hands during trading, an increase of 53% from the average session volume of 7,520,132 shares. The stock had previously closed at $127.21.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the stock. Jefferies Financial Group raised shares of Cerebras Systems to an "outperform" rating in a research note on Monday, October 5th. Rosenblatt Securities reaffirmed a "buy" rating and set a $300.00 price objective on shares of Cerebras Systems in a research report on Wednesday, August 19th. Freedom Capital raised shares of Cerebras Systems from a "hold" rating to a "strong-buy" rating in a research report on Friday, October 2nd. Citigroup dropped their target price on Cerebras Systems from $340.00 to $320.00 and set a "buy" rating on the stock in a report on Thursday, August 13th. Finally, Needham & Company LLC reissued a "buy" rating and set a $300.00 price target on shares of Cerebras Systems in a research report on Wednesday, August 19th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $299.90.

Cerebras Systems Trading Down 5.1%

The firm has a market cap of $28.66 billion and a P/E ratio of -1,508.25. The company has a 50 day moving average of $191.68. The company has a debt-to-equity ratio of 0.02, a current ratio of 5.82 and a quick ratio of 5.80.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last issued its quarterly earnings data on Wednesday, August 12th. The company reported ($2.98) earnings per share for the quarter, missing the consensus estimate of ($0.21) by ($2.77). The firm had revenue of $209.87 million for the quarter. Cerebras Systems's quarterly revenue was up 74.3% compared to the same quarter last year. As a group, sell-side analysts forecast that Cerebras Systems Inc. will post -0.52 EPS for the current fiscal year.

Insider Buying and Selling

In other Cerebras Systems news, COO Dhiraj Mallick sold 396,000 shares of the firm'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 owned 396,000 shares of the company's stock, valued at approximately $80,799,840. This trade represents a 50.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Steven Vassallo sold 50,000 shares of the company's stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $210.30, for a total transaction of $10,515,000.00. Following the transaction, the director owned 171,977 shares of the company's stock, valued at approximately $36,166,763.10. This represents a 22.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 1,864,452 shares of company stock valued at $387,680,754 in the last quarter.

Hedge Funds Weigh In On Cerebras Systems

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Frank Rimerman Advisors LLC raised its position in shares of Cerebras Systems by 3,681.7% during the third quarter. Frank Rimerman Advisors LLC now owns 56,271 shares of the company's stock worth $9,997,000 after acquiring an additional 54,783 shares during the last quarter. ICG Advisors LLC increased its stake in Cerebras Systems by 179.9% in the third quarter. ICG Advisors LLC now owns 15,000 shares of the company's stock valued at $2,665,000 after purchasing an additional 9,641 shares in the last quarter. NFSG Corp grew its stake in shares of Cerebras Systems by 1,483.7% in the 3rd quarter. NFSG Corp now owns 8,821 shares of the company's stock valued at $1,567,000 after buying an additional 8,264 shares during the period. Cohen Capital Management Inc. bought a new stake in Cerebras Systems in the 3rd quarter valued at about $1,444,000. Finally, State Street Corp acquired a new position in Cerebras Systems during the 2nd quarter worth approximately $105,343,000.

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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