Cerebras Systems (NASDAQ:CBRS) Stock Price Up 6.4% – Time to Buy?

Cerebras Systems Inc. (NASDAQ:CBRS)’s stock price rose 6.4% during mid-day trading on Tuesday. The company traded as high as $210.00 and last traded at $209.3180. Approximately 1,644,481 shares traded hands during trading, a decline of 76% from the average daily volume of 6,886,335 shares. The stock had previously closed at $196.74.

More Cerebras Systems News

Here are the key news stories impacting Cerebras Systems this week:

• Positive Sentiment: Gimlet Labs partnership supports demand for Cerebras hardware. Gimlet will combine Cerebras’ wafer-scale computing systems with its inference cloud, targeting speeds of up to 3,000 tokens per second. The companies expect the first data center deployment this year, providing a potentially meaningful proof point for Cerebras’ technology in AI inference. Cerebras to supply AI systems to cloud computing startup Gimlet Labs
• Positive Sentiment: The deal could improve Cerebras’ competitive positioning in AI infrastructure. A large-scale, 100-megawatt customer commitment may reinforce investor expectations that Cerebras can win cloud and inference workloads beyond AI model training. Gimlet Labs Adds Cerebras to Deliver Ultrafast AI Inference through Gimlet Cloud
• Neutral Sentiment: Analyst sentiment remains broadly favorable but valuation and execution risks persist. Cerebras has a reported consensus rating of “Moderate Buy” and an average price target of $299.90. However, its most recent quarterly loss substantially exceeded analyst expectations, despite 74.3% year-over-year revenue growth.
• Negative Sentiment: Insider selling adds some pressure. CTO Sean Lie sold 120,000 shares for approximately $25.1 million, reducing his holdings by 27.93%. The transaction was made under a pre-arranged Rule 10b5-1 plan, which may lessen its signaling impact, but the size of the sale could still concern investors. Cerebras CTO stock sale SEC filing

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. Weiss Ratings cut shares of Cerebras Systems from a “sell (d)” rating to a “sell (d-)” rating in a report on Friday. Rosenblatt Securities reissued a “buy” rating and issued a $300.00 price target on shares of Cerebras Systems in a research report on Wednesday, August 19th. Citigroup cut 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. Zacks Research upgraded Cerebras Systems to a “hold” rating in a report on Tuesday, June 9th. Finally, Mizuho cut their price target on Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating on the stock 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 given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $299.90.

Cerebras Systems Trading Up 6.7%

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 business has a fifty day moving average of $203.85.

Cerebras Systems (NASDAQ:CBRS) last announced its quarterly earnings data 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 for the quarter. Cerebras Systems’s revenue for the quarter was up 74.3% on a year-over-year basis. Equities analysts forecast that Cerebras Systems Inc. will post -0.52 earnings per share for the current fiscal year.

Insider Buying and Selling at Cerebras Systems

In other news, Director Steven Vassallo sold 50,000 shares of the firm’s stock in a transaction dated 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 sale, the director owned 171,977 shares of the company’s stock, valued at approximately $36,166,763.10. This trade represents a 22.52% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Yagnesh Patel sold 4,574 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $222.22, for a total value of $1,016,434.28. Following the completion of the transaction, the chief accounting officer directly owned 16,676 shares of the company’s stock, valued at $3,705,740.72. This trade represents a 21.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 1,434,632 shares of company stock worth $299,996,249.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Silicon Valley Capital Partners purchased a new position in shares of Cerebras Systems in the 2nd quarter valued at $44,000. IFP Advisors Inc purchased a new stake in Cerebras Systems in the second quarter valued at $169,000. Integrated Wealth Concepts LLC purchased a new stake in Cerebras Systems in the second quarter valued at $197,000. Corient Private Wealth LP acquired a new position in Cerebras Systems in the second quarter valued at $205,000. Finally, Tiger Pacific Capital LP acquired a new position in Cerebras Systems in the second quarter valued at $221,000.

About Cerebras Systems

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.