Investors Buy Large Volume of Cerebras Systems Put Options (NASDAQ:CBRS)

Cerebras Systems Inc. (NASDAQ:CBRS) was the target of unusually large options trading on Monday. Traders acquired 58,502 put options on the stock. This is an increase of approximately 24% compared to the typical daily volume of 47,162 put options.

Cerebras Systems Stock Down 11.7%

NASDAQ CBRS opened at $96.36 on Tuesday. The company has a market capitalization of $22.89 billion and a price-to-earnings ratio of -1,204.50. 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 50 day simple moving average of $166.82. Cerebras Systems has a 12-month low of $95.03 and a 12-month high of $386.34.

Cerebras Systems (NASDAQ:CBRS) last issued its earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share (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 quarterly revenue was up 74.3% compared to the same quarter last year. Equities analysts expect that Cerebras Systems will post -0.52 EPS for the current year.

Cerebras Systems News Roundup

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

• Positive Sentiment: Upcoming third-quarter expectations have improved, with consensus calling for approximately $214.7 million in revenue and a $0.14 per-share loss. Cerebras has reportedly secured more than 600 megawatts of capacity, supporting management’s forecast for revenue growth of more than threefold in 2027. Planned disaggregated-inference deployments with AMD and Amazon Web Services could also increase throughput and improve utilization, token economics and revenue per megawatt. Cerebras: Q3 Could Validate The 2027 Story
• Neutral Sentiment: UBS lowered its price target from $330 to $250 but maintained a “buy” rating, implying substantial potential upside from recent trading levels. The target reduction reflects greater near-term caution, while the continued buy rating indicates UBS still believes in Cerebras’ longer-term opportunity. UBS Group Cerebras Price Target Update
• Negative Sentiment: Investor law firms Levi & Korsinsky and Block & Leviton announced investigations into Cerebras Systems and potential securities-law violations. These announcements may increase reputational and litigation risk, although they do not establish wrongdoing. Cerebras Investor Investigation Alert
• Negative Sentiment: The selloff follows a short position disclosed by Culper Research, intensifying investor concerns about Cerebras’ business prospects and supporting the stock’s move to a record low. Cerebras Stock Hits All-Time Low
• Negative Sentiment: Options activity was notably bearish, with traders purchasing 58,502 put contracts—about 24% above average volume—signaling increased demand for downside protection or bearish speculation.
• Negative Sentiment: Investors remain sensitive to Cerebras’ execution and profitability risks after its latest reported quarterly loss substantially exceeded consensus expectations, despite strong year-over-year revenue growth.

Insiders Place Their Bets

In other news, CEO Andrew D. Feldman sold 237,559 shares of Cerebras Systems stock in a transaction on Friday, August 21st. The stock was sold at an average price of $199.27, for a total transaction of $47,338,381.93. Following the sale, the chief executive officer directly owned 16,853 shares in the company, valued at $3,358,297.31. The trade was a 93.38% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Eric Vishria sold 68,268 shares of the stock in a transaction dated 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 transaction, 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 1,924,452 shares of company stock valued at $394,628,154.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in CBRS. McGuire Investment Group LLC increased its stake in Cerebras Systems by 7.6% in the 3rd quarter. McGuire Investment Group LLC now owns 1,420 shares of the company’s stock worth $252,000 after acquiring an additional 100 shares during the last quarter. Wealth Enhancement Trust Services Inc. bought a new stake in shares of Cerebras Systems during the 3rd quarter valued at about $26,000. Blue Bell Private Wealth Management LLC bought a new stake in shares of Cerebras Systems during the 3rd quarter valued at about $31,000. GK Wealth Management LLC purchased a new position in shares of Cerebras Systems during the third quarter worth about $31,000. Finally, Silicon Valley Capital Partners bought a new position in shares of Cerebras Systems in the second quarter worth approximately $44,000.

Wall Street Analyst Weigh In

CBRS has been the topic of a number of research analyst reports. Freedom Capital upgraded shares of Cerebras Systems from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 2nd. UBS Group dropped their price objective on Cerebras Systems from $330.00 to $250.00 and set a “buy” rating on the stock in a research note on Monday. Mizuho reduced their price objective on Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating for the company in a report on Thursday, August 13th. TD Cowen decreased their target price on Cerebras Systems from $275.00 to $175.00 and set a “buy” rating for the company in a research report on Monday, October 19th. Finally, Rosenblatt Securities restated a “buy” rating and issued a $300.00 target price on shares of Cerebras Systems in a research note on Wednesday, August 19th. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $281.90.

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.