Cerebras Systems (NASDAQ:CBRS) Stock Falls 3.3% – What’s Next?

Cerebras Systems Inc. (NASDAQ:CBRS) traded down 3.3% during mid-day trading on Thursday. The stock traded as low as $93.87 and last traded at $97.75. Approximately 13,689,990 shares were traded during trading, an increase of 71% from the average session volume of 7,991,486 shares. The stock had previously closed at $101.08.

Latest Cerebras Systems News

These are some of the CBRS news items that stood out recently:

• Positive Sentiment: Third-quarter revenue reached a record: the release reported $210.8 million in GAAP revenue and $230.9 million in Core revenue; cloud revenue grew sharply year over year. Cerebras also announced commercial wins with two new hyperscalers and said 700 megawatts of data-center capacity is under contract. Cerebras third-quarter results and outlook
• Neutral Sentiment: The company reported quarterly EPS of $0.13 and revenue of $230.87 million. The provided reports do not state whether EPS exceeded expectations. Cerebras earnings information
• Negative Sentiment: Pomerantz LLP said it is investigating potential claims on behalf of Cerebras investors. The announcement may weigh on sentiment, though it does not establish wrongdoing or provide details of any claims. Investor investigation announcement

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the company. Citigroup dropped their target price on Cerebras Systems from $340.00 to $320.00 and set a “buy” rating for the company in a report on Thursday, August 13th. UBS Group decreased their price target on Cerebras Systems from $330.00 to $250.00 and set a “buy” rating on the stock in a report on Monday, November 2nd. Wedbush lowered their price target on Cerebras Systems from $290.00 to $190.00 and set an “outperform” rating for the company in a research report on Monday. Jefferies Financial Group raised shares of Cerebras Systems to an “outperform” rating in a research note on Monday, October 5th. Finally, Freedom Capital upgraded shares of Cerebras Systems from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has issued 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 $261.80.

Cerebras Systems Trading Down 3.3%

The company has a quick ratio of 5.80, a current ratio of 5.82 and a debt-to-equity ratio of 0.02. The stock has a market capitalization of $23.22 billion and a P/E ratio of -1,221.88. The business has a 50-day moving average price of $154.39.

Cerebras Systems (NASDAQ:CBRS) last posted its quarterly earnings data on Thursday, November 12th. The company reported $0.13 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.26. The business had revenue of $230.87 million for the quarter. On average, equities research analysts forecast that Cerebras Systems Inc. will post -0.52 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Steven Vassallo sold 50,000 shares of the stock in a transaction on 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 completion of the sale, the director owned 171,977 shares in the company, valued at approximately $36,166,763.10. This represents a 22.52% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Eric Vishria sold 68,268 shares of the firm’s stock in a transaction on 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 directly 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,924,452 shares of company stock valued at $394,628,154 over the last three months.

Institutional Investors Weigh In On Cerebras Systems

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CBRS. Frank Rimerman Advisors LLC raised its position in shares of Cerebras Systems by 3,681.7% in the 3rd quarter. Frank Rimerman Advisors LLC now owns 56,271 shares of the company’s stock valued at $9,997,000 after purchasing an additional 54,783 shares during the last quarter. ICG Advisors LLC boosted its stake in Cerebras Systems by 179.9% in the 3rd quarter. ICG Advisors LLC now owns 15,000 shares of the company’s stock worth $2,665,000 after purchasing an additional 9,641 shares in the last quarter. NFSG Corp grew its position in Cerebras Systems by 1,483.7% during the 3rd quarter. NFSG Corp now owns 8,821 shares of the company’s stock worth $1,567,000 after purchasing an additional 8,264 shares during the last quarter. Cohen Capital Management Inc. purchased a new stake in Cerebras Systems during the 3rd quarter worth approximately $1,444,000. Finally, State Street Corp purchased a new stake in Cerebras Systems during the 2nd quarter worth approximately $105,343,000.

About Cerebras Systems

Cerebras Systems develops computing systems and software designed for artificial intelligence and other compute-intensive workloads. Its products are built around the Wafer-Scale Engine, a large processor designed to support AI model training and inference, and include the CS-3 system and related software. The company also offers cloud-based access to its AI computing infrastructure, giving customers a way to run AI workloads without deploying its systems on site. Its offerings are aimed at organizations developing and operating large AI models, including businesses, research institutions and public-sector customers.