Cerebras Systems (NASDAQ:CBRS) Stock Price Down 5.6% - What's Next?

Key Points

• Cerebras Systems shares fell 5.6% to $173.85 in midday trading, well below the 50-day moving average of $203.51, while trading volume was 86% below its daily average.
• Analysts remain broadly bullish, with a “Moderate Buy” consensus and an average price target of $299.90; recent targets range from $280 to $330.
• The company’s latest quarter showed 74.3% year-over-year revenue growth to $209.87 million, but its $2.98 loss per share significantly missed the $0.21 consensus estimate. Insiders sold about $266 million of shares over the past three months.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report)'s stock price fell 5.6% during mid-day trading on Tuesday . The company traded as low as $174.57 and last traded at $173.85. 1,017,577 shares changed hands during mid-day trading, a decline of 86% from the average daily volume of 7,125,078 shares. The stock had previously closed at $184.24.

Analyst Upgrades and Downgrades

CBRS has been the topic of a number of recent research reports. Wedbush upped their price target on Cerebras Systems from $280.00 to $290.00 and gave the company an "outperform" rating in a research report on Thursday, August 13th. UBS Group increased their target price on shares of Cerebras Systems from $320.00 to $330.00 and gave the stock a "buy" rating in a research report on Thursday, August 13th. Barclays assumed coverage on shares of Cerebras Systems in a research note on Monday, June 8th. They issued an "overweight" rating and a $280.00 target price for the company. Wall Street Zen upgraded shares of Cerebras Systems from a "sell" rating to a "hold" rating in a research note on Saturday, August 15th. Finally, Citigroup cut their price objective 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. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $299.90.

Cerebras Systems Price Performance

The stock has a 50-day moving average of $203.51.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last posted its quarterly 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 business had revenue of $209.87 million for the quarter. The business's revenue was up 74.3% compared to the same quarter last year. On average, equities analysts forecast that Cerebras Systems Inc. will post -0.52 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Eric Vishria sold 68,268 shares of the business's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $229.77, for a total value of $15,685,938.36. Following the completion of the sale, the director owned 31,383 shares of the company's stock, valued at approximately $7,210,871.91. The trade was a 68.51% 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, COO Dhiraj Mallick sold 38,889 shares of the business's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $222.22, for a total value of $8,641,913.58. Following the completion of the sale, the chief operating officer directly owned 120,000 shares of the company's stock, valued at approximately $26,666,400. This trade represents a 24.48% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 1,291,278 shares of company stock valued at $265,966,662 over the last three months.

Institutional Trading of Cerebras Systems

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Corient Private Wealth LP purchased a new stake in shares of Cerebras Systems during the second quarter valued at approximately $205,000. Tiger Pacific Capital LP bought a new stake in Cerebras Systems during the 2nd quarter valued at $221,000. Carlson Financial Inc. bought a new stake in Cerebras Systems during the 2nd quarter valued at $322,000. TD Waterhouse Canada Inc. purchased a new stake in Cerebras Systems during the 2nd quarter valued at $630,000. Finally, Fortitude Advisory Group L.L.C. bought a new stake in Cerebras Systems in the 2nd quarter worth $705,000.

About Cerebras Systems

Cerebras Systems is a technology company focused on building artificial intelligence infrastructure, including hardware and software designed to accelerate deep learning and large-scale AI workloads. The company is best known for its wafer-scale processor architecture, which is intended to provide high-performance compute for training and inference applications.

In addition to its AI chips, Cerebras offers systems and related software tools that support researchers and enterprises working with machine learning models.

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