Investors Buy High Volume of Call Options on Cerebras Systems (NASDAQ:CBRS)

Cerebras Systems Inc. (NASDAQ:CBRS) was the target of unusually large options trading on Friday. Stock traders acquired 61,002 call options on the company. This represents an increase of 48% compared to the typical volume of 41,246 call options.

Insider Activity

In other Cerebras Systems news, Director Eric Vishria sold 68,268 shares of the stock in a transaction dated 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 completion of the transaction, the director owned 31,383 shares of the company’s stock, valued at $7,210,871.91. This trade represents a 68.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Yagnesh Patel sold 4,574 shares of Cerebras Systems stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $222.22, for a total transaction of $1,016,434.28. Following the sale, the chief accounting officer owned 16,676 shares of the company’s stock, valued at approximately $3,705,740.72. This represents a 21.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 1,291,278 shares of company stock worth $265,966,662.

Institutional Trading of Cerebras Systems

Several hedge funds have recently added to or reduced their stakes in CBRS. Corient Private Wealth LP purchased a new position in Cerebras Systems in the second quarter worth approximately $205,000. Tiger Pacific Capital LP acquired a new stake in shares of Cerebras Systems in the 2nd quarter valued at $221,000. Carlson Financial Inc. acquired a new stake in shares of Cerebras Systems in the 2nd quarter valued at $322,000. Allianz Asset Management GmbH purchased a new stake in shares of Cerebras Systems during the 2nd quarter worth $508,000. Finally, TD Waterhouse Canada Inc. acquired a new position in shares of Cerebras Systems during the second quarter worth $630,000.

Cerebras Systems Stock Up 10.8%

CBRS stock traded up $20.56 during midday trading on Friday, hitting $211.00. The company’s stock had a trading volume of 10,700,523 shares, compared to its average volume of 7,217,026. The firm has a 50-day moving average of $202.90. Cerebras Systems has a 52-week low of $160.81 and a 52-week high of $386.34.

Cerebras Systems (NASDAQ:CBRS) last released its earnings results on Wednesday, August 12th. The company reported ($2.98) EPS for the quarter, missing the consensus estimate of ($0.21) by ($2.77). The company had revenue of $209.87 million during the quarter. The company’s revenue for the quarter was up 74.3% compared to the same quarter last year. Analysts expect that Cerebras Systems will post -0.52 EPS for the current fiscal year.

Wall Street Analyst Weigh In

CBRS has been the subject of a number of research analyst reports. Needham & Company LLC reaffirmed a “buy” rating and set a $300.00 price objective on shares of Cerebras Systems in a research report on Wednesday, August 19th. Zacks Research upgraded Cerebras Systems to a “hold” rating in a research note on Tuesday, June 9th. Freedom Capital upgraded Cerebras Systems to a “hold” rating in a research report on Monday, June 29th. Weiss Ratings assumed coverage on Cerebras Systems in a report on Thursday, August 13th. They issued a “sell (d)” rating on the stock. Finally, Citigroup lowered their target price on Cerebras Systems from $340.00 to $320.00 and set a “buy” rating for the company in a report on Thursday, August 13th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $299.90.

Cerebras Systems Company Profile

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.