Cerebras Systems (NASDAQ:CBRS) Trading 6.1% Higher – Should You Buy?

Cerebras Systems Inc. (NASDAQ:CBRS) shot up 6.1% during mid-day trading on Wednesday . The stock traded as high as $180.83 and last traded at $183.1830. Approximately 1,684,139 shares changed hands during mid-day trading, a decline of 76% from the average daily volume of 7,119,898 shares. The stock had previously closed at $172.62.

Wall Street Analyst Weigh In

CBRS has been the subject of several analyst reports. TD Cowen assumed coverage on Cerebras Systems in a research note on Monday, June 8th. They set a “buy” rating and a $275.00 target price for the company. Citigroup lowered their price target on Cerebras Systems from $340.00 to $320.00 and set a “buy” rating for the company in a report on Thursday, August 13th. Needham & Company LLC reissued a “buy” rating and set a $300.00 price objective on shares of Cerebras Systems in a report on Wednesday, August 19th. Wall Street Zen upgraded shares of Cerebras Systems from a “sell” rating to a “hold” rating in a report on Saturday, August 15th. Finally, Wedbush upped their target price on shares of Cerebras Systems from $280.00 to $290.00 and gave the company an “outperform” rating in a report on Thursday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $299.90.

Cerebras Systems Stock Performance

The stock’s 50 day simple moving average is $202.42.

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

Insiders Place Their Bets

In other news, Director Steven Vassallo sold 50,000 shares of Cerebras Systems stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $218.18, for a total value of $10,909,000.00. Following the sale, the director owned 49,599 shares of the company’s stock, valued at $10,821,509.82. The trade was a 50.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Dhiraj Mallick sold 38,889 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $222.22, for a total value of $8,641,913.58. Following the transaction, the chief operating officer owned 120,000 shares in the company, valued at $26,666,400. The trade was a 24.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 1,291,278 shares of company stock valued at $265,966,662.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Corient Private Wealth LP acquired a new stake in Cerebras Systems in the second quarter valued at $205,000. Tiger Pacific Capital LP acquired a new position in shares of Cerebras Systems during the 2nd quarter worth $221,000. Carlson Financial Inc. purchased a new position in shares of Cerebras Systems in the 2nd quarter valued at about $322,000. TD Waterhouse Canada Inc. purchased a new position in shares of Cerebras Systems in the 2nd quarter valued at about $630,000. Finally, Fortitude Advisory Group L.L.C. acquired a new stake in shares of Cerebras Systems in the second quarter valued at about $705,000.

About Cerebras Systems

Cerebras Systems is a technology company focused on building artificial intelligence infrastructure, including hardware and software designed to accelerate deep learning and large-scale AI workloads. The company is best known for its wafer-scale processor architecture, which is intended to provide high-performance compute for training and inference applications.

In addition to its AI chips, Cerebras offers systems and related software tools that support researchers and enterprises working with machine learning models.