Cerebras Systems (NASDAQ:CBRS) Sets New 12-Month Low – Should You Sell?

Shares of Cerebras Systems Inc. (NASDAQ:CBRS) hit a new 52-week low during mid-day trading on Monday. The stock traded as low as $155.50 and last traded at $152.4270, with a volume of 2,101,527 shares traded. The stock had previously closed at $164.17.

Key Headlines Impacting Cerebras Systems

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

• Positive Sentiment: A Wall Street analyst reportedly believes Cerebras could potentially double from current levels, citing the company’s AI infrastructure opportunity despite its substantial decline from its IPO-era highs. Cerebras Systems Could Double According to Analyst
• Positive Sentiment: Cerebras has accumulated a reported $25.4 billion backlog, creating the potential for significant future revenue and higher-margin growth if it can convert those commitments into shipments and operating profits. Cerebras Backlog and High-Margin Growth
• Positive Sentiment: CEO Andrew Feldman described a possible future in which households use dedicated AI appliances, highlighting a potentially large consumer market for Cerebras’ fast AI-computing technology. Cerebras CEO on Personal AI Assistants
• Neutral Sentiment: Cerebras generates more revenue than SoundHound AI and has grown rapidly, but its quarterly growth has been more volatile. The comparison reinforces strong scale while highlighting execution risk. Cerebras Versus SoundHound AI Revenue Trends
• Negative Sentiment: Up to 19.4 million additional shares could become eligible for sale under Cerebras’ staggered IPO lock-up, increasing the risk of insider and early-investor selling pressure. Cerebras Share Unlock
• Negative Sentiment: Reports that OpenAI assigned a high-profile workload to a rival, alongside Microsoft-related chip developments, have raised concerns about competition and Cerebras’ ability to win major AI customers. Cerebras OpenAI and Microsoft Chip News
• Negative Sentiment: One DCF analysis concludes CBRS may still be overvalued despite trading roughly half its early-2026 level, keeping valuation concerns prominent for risk-averse investors. Cerebras DCF Valuation Analysis

Analyst Ratings Changes

CBRS has been the subject of a number of research reports. Wall Street Zen upgraded shares of Cerebras Systems from a “sell” rating to a “hold” rating in a research note on Saturday, August 15th. Freedom Capital raised Cerebras Systems from a “hold” rating to a “strong-buy” rating in a report on Friday, October 2nd. Needham & Company LLC reiterated a “buy” rating and set a $300.00 price objective on shares of Cerebras Systems in a research report on Wednesday, August 19th. UBS Group increased their target price on Cerebras Systems from $320.00 to $330.00 and gave the company a “buy” rating in a report on Thursday, August 13th. Finally, Rosenblatt Securities reissued a “buy” rating and issued a $300.00 target price on shares of Cerebras Systems in a report on Wednesday, August 19th. Two investment 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 issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $299.90.

Cerebras Systems Stock Up 1.7%

The company has a current ratio of 5.82, a quick ratio of 5.80 and a debt-to-equity ratio of 0.02. The company has a fifty day moving average of $196.51.

Cerebras Systems (NASDAQ:CBRS) last announced its earnings results on Wednesday, August 12th. The company reported ($2.98) EPS for the quarter, missing analysts’ consensus estimates of ($0.21) by ($2.77). The business had revenue of $209.87 million for the quarter. The company’s revenue was up 74.3% compared to the same quarter last year. As a group, analysts expect that Cerebras Systems Inc. will post -0.52 EPS for the current year.

Insider Buying and Selling at Cerebras Systems

In other news, Director Eric Vishria sold 68,268 shares of the business’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $229.77, for a total transaction of $15,685,938.36. Following the completion of the sale, the director owned 31,383 shares of the company’s stock, valued at $7,210,871.91. The trade was a 68.51% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Feldman sold 237,559 shares of the company’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $199.27, for a total value of $47,338,381.93. Following the completion of the sale, the chief executive officer owned 16,853 shares of the company’s stock, valued at $3,358,297.31. This trade represents a 93.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 1,864,452 shares of company stock worth $387,680,754.

Institutional Trading of Cerebras Systems

Hedge funds have recently bought and sold shares of the stock. Wealth Enhancement Trust Services Inc. purchased a new stake in Cerebras Systems in the 3rd quarter worth approximately $26,000. GK Wealth Management LLC bought a new stake in Cerebras Systems during the 3rd quarter worth approximately $31,000. Silicon Valley Capital Partners bought a new stake in Cerebras Systems during the 2nd quarter worth approximately $44,000. CoreCap Advisors LLC bought a new stake in Cerebras Systems during the 3rd quarter worth approximately $52,000. Finally, IFP Advisors Inc purchased a new position in Cerebras Systems during the second quarter valued at approximately $169,000.

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.