Cerebras Systems (NASDAQ:CBRS) Stock Price Up 6.1% - Time to Buy?

Key Points

• Cerebras Systems shares rose 6.1% to approximately $183.18, though trading volume was 76% below the average session volume.
• Analysts maintain a broadly positive outlook, with a consensus “Moderate Buy” rating and an average price target of $299.90, despite recent target reductions by Citigroup and Mizuho.
• The company’s quarterly revenue increased 74.3% year over year to $209.87 million, but its $2.98 per-share loss significantly missed estimates; insiders also sold approximately $266 million of stock over the past quarter.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report)'s stock price traded up 6.1% during trading on Wednesday . The company traded as high as $180.83 and last traded at $183.1830. 1,684,139 shares changed hands during trading, a decline of 76% from the average session volume of 7,119,898 shares. The stock had previously closed at $172.62.

Analysts Set New Price Targets

Several research analysts recently issued reports on the company. Citigroup reduced their target price 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. Mizuho decreased their target price on shares of Cerebras Systems from $310.00 to $300.00 and set an "outperform" rating for the company in a research report on Thursday, August 13th. Wall Street Zen upgraded Cerebras Systems from a "sell" rating to a "hold" rating in a research report on Saturday, August 15th. Needham & Company LLC reissued a "buy" rating and set a $300.00 target price on shares of Cerebras Systems in a research note on Wednesday, August 19th. Finally, Zacks Research raised shares of Cerebras Systems to a "hold" rating in a research note on Tuesday, June 9th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Cerebras Systems currently has a consensus rating of "Moderate Buy" and a consensus price target of $299.90.

Cerebras Systems Price Performance

The business's fifty day moving average is $202.42.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last released its quarterly earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share for the quarter, missing analysts' consensus estimates of ($0.21) by ($2.77). The firm had revenue of $209.87 million during the quarter. The company's revenue was up 74.3% on a year-over-year basis. As a group, research analysts expect that Cerebras Systems Inc. will post -0.52 EPS for the current fiscal year.

Insider Activity at Cerebras Systems

In other Cerebras Systems news, CEO Andrew D. Feldman sold 237,559 shares of Cerebras Systems stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $199.27, for a total transaction of $47,338,381.93. Following the completion of the sale, the chief executive officer directly owned 16,853 shares in the company, valued at $3,358,297.31. This trade represents a 93.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Steven Vassallo sold 50,000 shares of Cerebras Systems stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $218.18, for a total transaction of $10,909,000.00. Following the sale, the director owned 49,599 shares of the company's stock, valued at approximately $10,821,509.82. This represents a 50.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,291,278 shares of company stock valued at $265,966,662 over the last quarter.

Institutional Trading of Cerebras Systems

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Corient Private Wealth LP purchased a new position in shares of Cerebras Systems during the second quarter worth $205,000. Tiger Pacific Capital LP purchased a new stake in shares of Cerebras Systems in the 2nd quarter valued at $221,000. Carlson Financial Inc. purchased a new stake in shares of Cerebras Systems in the 2nd quarter valued at $322,000. TD Waterhouse Canada Inc. acquired a new position in Cerebras Systems during the 2nd quarter worth about $630,000. Finally, Fortitude Advisory Group L.L.C. acquired a new position in Cerebras Systems during the 2nd quarter worth about $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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