Cerebras Systems Target of Unusually High Options Trading (NASDAQ:CBRS)

Cerebras Systems Inc. (NASDAQ:CBRS) was the target of some unusual options trading activity on Monday. Stock traders acquired 63,080 call options on the company. This represents an increase of 59% compared to the typical volume of 39,550 call options.

Insiders Place Their Bets

In other news, CTO Sean Lie sold 10,033 shares of Cerebras Systems stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $170.07, for a total value of $1,706,312.31. Following the completion of the sale, the chief technology officer directly owned 10,033 shares in the company, valued at $1,706,312.31. The trade was a 50.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Yagnesh Patel sold 3,954 shares of the firm’s stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $174.03, for a total value of $688,114.62. Following the completion of the transaction, the chief accounting officer directly owned 3,954 shares in the company, valued at $688,114.62. The trade was a 50.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 107,547 shares of company stock valued at $18,611,699.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the company. UBS Group lifted their price target on Cerebras Systems from $300.00 to $320.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. Citigroup began coverage on shares of Cerebras Systems in a report on Monday, June 8th. They set a “buy” rating and a $340.00 price target on the stock. Zacks Research raised Cerebras Systems to a “hold” rating in a research note on Tuesday, June 9th. Morgan Stanley raised their price objective on shares of Cerebras Systems from $250.00 to $273.00 and gave the company an “overweight” rating in a research note on Wednesday, June 24th. Finally, Mizuho started coverage on shares of Cerebras Systems in a research report on Monday, June 8th. They issued an “outperform” rating and a $300.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, Cerebras Systems has a consensus rating of “Buy” and an average price target of $299.30.

Cerebras Systems Trading Up 19.0%

NASDAQ:CBRS traded up $34.57 during trading hours on Monday, reaching $216.16. 13,231,215 shares of the company traded hands, compared to its average volume of 8,107,127. Cerebras Systems has a 1-year low of $160.81 and a 1-year high of $386.34.

Cerebras Systems (NASDAQ:CBRS) last released its earnings results on Tuesday, June 23rd. The company reported ($0.04) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.14) by $0.10. The company had revenue of $193.41 million during the quarter, compared to analysts’ expectations of $180.70 million.

Key Stories Impacting Cerebras Systems

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

• Positive Sentiment: Investor interest rose after unusually heavy call option buying, with 63,080 call contracts traded versus a typical 39,550, suggesting some traders are betting on further upside. Here’s Why Cerebras (CBRS) is Among the 10 Best New Stocks to Buy Other Than SpaceX
• Positive Sentiment: A Yahoo Finance article highlighted Cerebras as one of the “10 Best New Stocks to Buy Other Than SpaceX,” which may be helping sentiment around the name. Here’s Why Cerebras (CBRS) is Among the 10 Best New Stocks to Buy Other Than SpaceX
• Neutral Sentiment: A Seeking Alpha piece argued Cerebras is “appealing below IPO price,” but it also noted near-term growth stagnation and margin pressure, making the outlook more nuanced than outright bullish. Cerebras: Gets Appealing Below IPO Price
• Negative Sentiment: Multiple senior executives sold stock, including CEO Andrew Feldman, CTO Sean Lie, COO Dhiraj Mallick, and CAO Yagnesh Patel. While the filings say the sales were largely to cover tax withholding on vesting awards, the size and number of transactions can still pressure sentiment and raise concerns about insider confidence.
• Negative Sentiment: CBRS was also mentioned in a new fraud investigation notice from a law firm, which can add legal overhang and weigh on investor confidence. CBRS Investors Have Opportunity to Join Cerebras Systems Inc. Fraud Investigation with the Schall Law Firm

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.