Cerebras Systems (NASDAQ:CBRS) Reaches New 1-Year Low – What’s Next?

Cerebras Systems Inc. (NASDAQ:CBRS)’s share price reached a new 52-week low during trading on Wednesday. The stock traded as low as $94.42 and last traded at $94.6010, with a volume of 344,282 shares changing hands. The stock had previously closed at $97.82.

Key Cerebras Systems News

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

• Positive Sentiment: UBS cut its price target to $250 from $330 but maintained a Buy rating, implying substantial upside from the then-current share price. The lower target reflects a more cautious valuation, while the continued Buy rating signals that the bank still sees potential. UBS price target update
• Positive Sentiment: A bullish earnings preview points to Q3 revenue consensus of $214.7 million and improving estimate revisions. It also highlights more than 600MW of secured capacity and management’s expectation for over threefold revenue growth in 2027; planned work with AMD and AWS could improve throughput and revenue per unit of capacity. Cerebras: Q3 Could Validate The 2027 Story
• Neutral Sentiment: UBS’s remaining Buy rating and high target contrast with the recent market selloff, underscoring uncertainty about whether the growth outlook can outweigh near-term risks. Cerebras Sinks 11% in a Week to a New 52-Week Low
• Negative Sentiment: Shares fell sharply, including an 11.7% decline reported after an analyst downgrade, adding to pressure as the stock approached a 52-week low. Cerebras Shares Down 11.7% Following Analyst Downgrade
• Negative Sentiment: Recent coverage attributes the selloff to a short-seller report, significant insider selling, and market rumors that a major customer may have left. These are concerns and allegations, not established conclusions. Cerebras Systems Craters Again
• Negative Sentiment: Investors also bought unusually large volumes of put options, suggesting increased demand for downside protection. Law firms announced investigations into potential securities-law issues, which could add uncertainty; the announcements do not establish wrongdoing. Investor investigation notice

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the company. Wedbush boosted their target price on Cerebras Systems from $280.00 to $290.00 and gave the stock an “outperform” rating in a research report on Thursday, August 13th. Freedom Capital raised shares of Cerebras Systems from a “hold” rating to a “strong-buy” rating in a report on Friday, October 2nd. UBS Group reduced their price target on shares of Cerebras Systems from $330.00 to $250.00 and set a “buy” rating for the company in a research note on Monday. TD Cowen decreased their price objective on shares of Cerebras Systems from $275.00 to $175.00 and set a “buy” rating for the company in a report on Monday, October 19th. Finally, Mizuho lowered their price objective on shares of Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating on the stock in a research report on Thursday, August 13th. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $281.90.

Cerebras Systems Price Performance

The stock has a market cap of $22.63 billion and a P/E ratio of -1,199.60. 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 stock’s 50-day simple moving average is $165.07.

Cerebras Systems (NASDAQ:CBRS) last released its quarterly earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.21) by ($2.77). The business had revenue of $209.87 million during the quarter. The business’s quarterly revenue was up 74.3% on a year-over-year basis. On average, equities analysts predict that Cerebras Systems Inc. will post -0.52 EPS for the current fiscal year.

Insider Buying and Selling

In other Cerebras Systems news, CEO Andrew D. Feldman sold 237,559 shares of the company’s stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $199.27, for a total transaction of $47,338,381.93. Following the completion of the sale, the chief executive officer directly owned 16,853 shares of the company’s stock, valued at approximately $3,358,297.31. This represents a 93.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Dhiraj Mallick sold 396,000 shares of the stock in a transaction that occurred on 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 transaction, the chief operating officer owned 396,000 shares in the company, valued at $80,799,840. The trade was a 50.00% 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 have sold a total of 1,924,452 shares of company stock valued at $394,628,154 in the last 90 days.

Institutional Investors Weigh In On Cerebras Systems

Hedge funds have recently modified their holdings of the business. Value Aligned Research Advisors LLC purchased a new stake in Cerebras Systems in the 2nd quarter worth $241,934,000. Wellington Management Group LLP bought a new stake in Cerebras Systems during the second quarter valued at about $194,853,000. Sumitomo Mitsui Trust Group Inc. lifted its position in shares of Cerebras Systems by 59.6% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 490,139 shares of the company’s stock valued at $87,073,000 after acquiring an additional 183,035 shares in the last quarter. State Street Corp purchased a new position in shares of Cerebras Systems in the second quarter valued at about $105,343,000. Finally, Dragoneer Investment Group LLC purchased a new position in shares of Cerebras Systems in the second quarter valued at about $88,400,000.

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.