Cerebras Systems (NASDAQ:CBRS) Shares Down 5.1% – Here’s Why

Cerebras Systems Inc. (NASDAQ:CBRS) shares dropped 5.1% during trading on Wednesday. The company traded as low as $139.91 and last traded at $141.48. Approximately 11,035,359 shares changed hands during trading, an increase of 49% from the average session volume of 7,420,133 shares. The stock had previously closed at $149.09.

Analyst Upgrades and Downgrades

CBRS has been the topic of a number of research reports. Mizuho dropped their price target on shares of Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating on the stock in a research note on Thursday, August 13th. Citigroup reduced their price objective on Cerebras Systems from $340.00 to $320.00 and set a “buy” rating for the company in a research report on Thursday, August 13th. Wedbush lifted their price objective on Cerebras Systems from $280.00 to $290.00 and gave the company an “outperform” rating in a research report on Thursday, August 13th. Freedom Capital upgraded Cerebras Systems from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 2nd. Finally, Morgan Stanley upped their target price on Cerebras Systems from $273.00 to $279.00 and gave the stock an “overweight” rating in a research report on Thursday, August 13th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned 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 stock currently has an average rating of “Moderate Buy” and an average target price of $299.90.

Cerebras Systems Price Performance

The stock’s fifty day moving average price is $196.51. The company has a debt-to-equity ratio of 0.02, a current ratio of 5.82 and a quick ratio of 5.80. The company has a market cap of $33.61 billion and a P/E ratio of -1,768.50.

Cerebras Systems (NASDAQ:CBRS) last issued its quarterly earnings data on Wednesday, August 12th. The company reported ($2.98) EPS for the quarter, missing analysts’ consensus estimates of ($0.21) by ($2.77). The firm had revenue of $209.87 million during the quarter. The business’s revenue for the quarter was up 74.3% compared to the same quarter last year. Equities analysts anticipate that Cerebras Systems Inc. will post -0.52 earnings per share for the current year.

Insider Transactions at Cerebras Systems

In other news, CTO Sean Lie sold 710,247 shares of the firm’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $207.86, for a total value of $147,631,941.42. Following the sale, the chief technology officer directly owned 368,926 shares of the company’s stock, valued at approximately $76,684,958.36. This trade represents a 65.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Steven Vassallo sold 50,000 shares of the stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $210.30, for a total value 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. The trade was a 22.52% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 1,864,452 shares of company stock worth $387,680,754.

Institutional Investors Weigh In On Cerebras Systems

Several hedge funds have recently modified their holdings of the business. Wealth Enhancement Trust Services Inc. acquired a new stake in shares of Cerebras Systems in the third quarter worth $26,000. GK Wealth Management LLC bought a new position in Cerebras Systems during the third quarter worth $31,000. Silicon Valley Capital Partners acquired a new position in Cerebras Systems during the 2nd quarter valued at $44,000. CoreCap Advisors LLC acquired a new position in Cerebras Systems during the 3rd quarter valued at $52,000. Finally, IFP Advisors Inc acquired a new position in Cerebras Systems during the 2nd quarter valued at $169,000.

Cerebras Systems Company Profile

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.