Cerebras Systems (NASDAQ:CBRS) Stock Falls 10.5% – Here’s What Happened

Cerebras Systems Inc. (NASDAQ:CBRS) shares were down 10.5% on Friday. The stock traded as low as $126.05 and last traded at $127.21. 11,575,803 shares traded hands during trading, an increase of 55% from the average session volume of 7,479,385 shares. The stock had previously closed at $142.17.

Analyst Upgrades and Downgrades

CBRS has been the subject of a number of research reports. Morgan Stanley lifted their target price on Cerebras Systems from $273.00 to $279.00 and gave the company an “overweight” rating in a research note on Thursday, August 13th. 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 target on shares of Cerebras Systems in a research report on Wednesday, August 19th. Mizuho cut their price target on Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating on the stock in a report on Thursday, August 13th. Finally, Citigroup cut their price target on Cerebras Systems from $340.00 to $320.00 and set a “buy” rating on the stock in a 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 company has an average rating of “Moderate Buy” and a consensus target price of $299.90.

Cerebras Systems Stock Performance

The company has a market capitalization of $30.22 billion and a PE ratio of -1,590.12. The stock’s 50 day moving average price is $191.68. The company has a debt-to-equity ratio of 0.02, a quick ratio of 5.80 and a current ratio of 5.82.

Cerebras Systems (NASDAQ:CBRS) last issued its quarterly earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share (EPS) for the quarter, missing the consensus estimate 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% on a year-over-year basis. Sell-side analysts predict that Cerebras Systems Inc. will post -0.52 EPS for the current year.

Insider Activity at Cerebras Systems

In related news, CTO Sean Lie sold 710,247 shares of the business’s stock in a transaction that occurred on Thursday, August 20th. The shares were 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 in the company, valued at $76,684,958.36. The trade was a 65.81% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Eric Vishria sold 68,268 shares of the stock in a transaction that occurred 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 sale, the director directly owned 31,383 shares of the company’s stock, valued at approximately $7,210,871.91. This represents a 68.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 1,864,452 shares of company stock worth $387,680,754.

Institutional Trading of Cerebras Systems

A number of large investors have recently added to or reduced their stakes in CBRS. Value Aligned Research Advisors LLC bought a new position in shares of Cerebras Systems in the second quarter valued at $241,934,000. Wellington Management Group LLP acquired a new stake in shares of Cerebras Systems during the 2nd quarter valued at $194,853,000. State Street Corp acquired a new stake in shares of Cerebras Systems during the 2nd quarter valued at $105,343,000. Dragoneer Investment Group LLC acquired a new stake in shares of Cerebras Systems during the 2nd quarter valued at $88,400,000. Finally, Montanova Capital LLC acquired a new stake in shares of Cerebras Systems during the 2nd quarter valued at $37,990,000.

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.