Cerebras Systems (NASDAQ:CBRS) Shares Climb 10.1% – Here’s What Happened

Cerebras Systems Inc. (NASDAQ:CBRS)’s stock price shot up 10.1% on Tuesday. The company traded as high as $120.50 and last traded at $119.31. Approximately 14,239,073 shares traded hands during trading, an increase of 86% from the average session volume of 7,641,579 shares. The stock had previously closed at $108.37.

Analyst Ratings Changes

Several analysts have recently issued reports on the stock. Jefferies Financial Group raised shares of Cerebras Systems to an “outperform” rating in a research note on Monday, October 5th. Needham & Company LLC reaffirmed a “buy” rating and issued a $300.00 target price on shares of Cerebras Systems in a research report on Wednesday, August 19th. UBS Group lifted their target price on Cerebras Systems from $320.00 to $330.00 and gave the company a “buy” rating in a report on Thursday, August 13th. TD Cowen lowered their price target on Cerebras Systems from $275.00 to $175.00 and set a “buy” rating for the company in a research report on Monday, October 19th. Finally, Mizuho dropped their price target on Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating for the company in a research note on Thursday, August 13th. Two 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 given a Sell rating to the company. Based on data from MarketBeat.com, Cerebras Systems currently has a consensus rating of “Moderate Buy” and a consensus target price of $289.90.

Cerebras Systems Stock Up 10.1%

The firm has a market cap of $28.34 billion and a PE ratio of -1,491.38. The company has a current ratio of 5.82, a quick ratio of 5.80 and a debt-to-equity ratio of 0.02. The stock’s fifty day moving average is $179.86.

Cerebras Systems (NASDAQ:CBRS) last released its quarterly earnings data 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. Equities analysts expect that Cerebras Systems Inc. will post -0.52 EPS for the current year.

Insider Activity

In related news, Director Steven Vassallo sold 50,000 shares of the company’s stock in a transaction on Friday, September 4th. The shares were 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 directly owned 171,977 shares of the company’s stock, 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 Securities & Exchange Commission, which is accessible through the SEC website. Also, CTO Sean Lie sold 120,000 shares of the stock in a transaction on Friday, September 25th. The shares were sold at an average price of $208.97, for a total value of $25,076,400.00. Following the completion of the sale, the chief technology officer owned 309,569 shares of the company’s stock, valued at approximately $64,690,633.93. This represents a 27.93% 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. Insiders sold 1,864,452 shares of company stock worth $387,680,754 in the last quarter.

Hedge Funds Weigh In On Cerebras Systems

Several hedge funds and other institutional investors have recently bought and sold shares of CBRS. McGuire Investment Group LLC lifted its position in shares of Cerebras Systems by 7.6% during the third quarter. McGuire Investment Group LLC now owns 1,420 shares of the company’s stock worth $252,000 after purchasing an additional 100 shares in the last quarter. Wealth Enhancement Trust Services Inc. acquired a new stake in Cerebras Systems during the 3rd quarter valued at $26,000. GK Wealth Management LLC acquired a new stake in Cerebras Systems during the 3rd quarter valued at $31,000. Silicon Valley Capital Partners purchased a new stake in Cerebras Systems during the 2nd quarter worth $44,000. Finally, B. Riley Wealth Advisors Inc. increased its stake in Cerebras Systems by 16.2% during the 3rd quarter. B. Riley Wealth Advisors Inc. now owns 1,588 shares of the company’s stock worth $282,000 after buying an additional 221 shares during the period.

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.