Cerebras Systems (NASDAQ:CBRS) Shares Down 5.1% – What’s Next?

Cerebras Systems Inc. (NASDAQ:CBRS) shares were down 5.1% on Wednesday. The stock traded as low as $139.91 and last traded at $141.48. 11,035,359 shares were traded during trading, an increase of 49% from the average session volume of 7,420,133 shares. The stock had previously closed at $149.09.

Analysts Set New Price Targets

CBRS has been the subject of several research reports. Weiss Ratings downgraded shares of Cerebras Systems from a “sell (d)” rating to a “sell (d-)” rating in a report on Friday, September 25th. Wedbush increased their price target on Cerebras Systems from $280.00 to $290.00 and gave the company an “outperform” rating in a research note on Thursday, August 13th. Jefferies Financial Group upgraded Cerebras Systems to an “outperform” rating in a report on Monday, October 5th. Needham & Company LLC reaffirmed a “buy” rating and issued a $300.00 price objective on shares of Cerebras Systems in a research note on Wednesday, August 19th. Finally, Morgan Stanley upped their price objective on Cerebras Systems from $273.00 to $279.00 and gave the stock an “overweight” rating in a 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 assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $299.90.

Cerebras Systems Stock Down 9.7%

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 $30.51 billion and a P/E ratio of -1,598.34. The stock has a 50 day moving average of $193.67.

Cerebras Systems (NASDAQ:CBRS) last announced 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 firm had revenue of $209.87 million during the quarter. Cerebras Systems’s revenue was up 74.3% on a year-over-year basis. As a group, equities research analysts forecast that Cerebras Systems Inc. will post -0.52 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Robert Patrick Jr. Komin sold 32,500 shares of the firm’s stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $203.53, for a total value of $6,614,725.00. Following the sale, the chief financial officer directly owned 30,670 shares in the company, valued at approximately $6,242,265.10. This trade represents a 51.45% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Sean Lie sold 120,000 shares of Cerebras Systems stock in a transaction that occurred on Friday, September 25th. The stock was sold at an average price of $208.97, for a total transaction of $25,076,400.00. Following the completion of the transaction, the chief technology officer directly owned 309,569 shares in the company, valued at approximately $64,690,633.93. The trade was a 27.93% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 1,864,452 shares of company stock worth $387,680,754.

Institutional Trading of Cerebras Systems

Hedge funds and other institutional investors have recently made changes to their positions in the business. Wealth Enhancement Trust Services Inc. acquired a new stake in Cerebras Systems in the third quarter worth about $26,000. GK Wealth Management LLC acquired a new stake in shares of Cerebras Systems during the third quarter worth $31,000. Silicon Valley Capital Partners acquired a new stake in shares of Cerebras Systems during the second quarter worth $44,000. B. Riley Wealth Advisors Inc. lifted its stake in shares of Cerebras Systems by 16.2% during the third 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. Finally, Mather Group LLC. purchased a new stake in shares of Cerebras Systems during the third quarter valued at $44,000.

Cerebras Systems Company Profile

Cerebras Systems is an artificial intelligence computing company that develops specialized hardware and software for training and deploying large AI models. The company’s technology is designed to address the computational demands of generative AI, deep learning and other data-intensive workloads.

Its core products include the Wafer-Scale Engine, a purpose-built AI processor produced on a single silicon wafer, and the CS-3 AI supercomputer, which incorporates that processor into an integrated computing system.