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

Cerebras Systems Inc. (NASDAQ:CBRS)’s stock price dropped 5.1% during trading on Monday. The stock traded as low as $120.12 and last traded at $120.66. 11,525,599 shares changed hands during trading, an increase of 53% from the average session volume of 7,520,132 shares. The stock had previously closed at $127.21.

Analysts Set New Price Targets

A number of research firms recently weighed in on CBRS. Jefferies Financial Group raised shares of Cerebras Systems to an “outperform” rating in a research report on Monday, October 5th. Mizuho decreased 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. Wedbush lifted their price objective on shares of Cerebras Systems from $280.00 to $290.00 and gave the company an “outperform” rating in a research note on Thursday, August 13th. Wall Street Zen upgraded Cerebras Systems from a “sell” rating to a “hold” rating in a research report on Saturday, August 15th. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $300.00 price objective on shares of Cerebras Systems in a research report on Wednesday, August 19th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $299.90.

Cerebras Systems Stock Performance

The company has a debt-to-equity ratio of 0.02, a quick ratio of 5.80 and a current ratio of 5.82. The firm has a market capitalization of $28.66 billion and a P/E ratio of -1,508.25. The company’s 50 day simple moving average is $191.68.

Cerebras Systems (NASDAQ:CBRS) last posted 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 business had revenue of $209.87 million for the quarter. The business’s revenue was up 74.3% on a year-over-year basis. On average, analysts anticipate that Cerebras Systems Inc. will post -0.52 EPS for the current year.

Insider Buying and Selling

In related news, COO Dhiraj Mallick sold 396,000 shares of the stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $204.04, for a total transaction of $80,799,840.00. Following the completion of the sale, the chief operating officer directly owned 396,000 shares in the company, valued at $80,799,840. This represents a 50.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Robert Patrick Jr. Komin sold 32,500 shares of the firm’s stock in a transaction that occurred on Tuesday, September 29th. The stock was sold at an average price of $203.53, for a total value of $6,614,725.00. Following the transaction, the chief financial officer owned 30,670 shares in the company, valued at approximately $6,242,265.10. The trade was a 51.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,864,452 shares of company stock worth $387,680,754 in the last 90 days.

Institutional Trading of Cerebras Systems

Several hedge funds and other institutional investors have recently bought and sold shares of CBRS. Wealth Enhancement Trust Services Inc. purchased a new stake in shares of Cerebras Systems during the third quarter valued at approximately $26,000. GK Wealth Management LLC bought a new position in shares of Cerebras Systems in the third quarter worth approximately $31,000. Silicon Valley Capital Partners purchased a new position in shares of Cerebras Systems in the second quarter worth $44,000. Mather Group LLC. purchased a new position in shares of Cerebras Systems in the third quarter worth $44,000. Finally, CoreCap Advisors LLC bought a new stake in Cerebras Systems during the 3rd quarter valued at $52,000.

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.