Cerebras Systems (NASDAQ:CBRS) Hits New 1-Year Low – Time to Sell?

Cerebras Systems Inc. (NASDAQ:CBRS)’s stock price hit a new 52-week low during mid-day trading on Monday. The company traded as low as $122.14 and last traded at $121.6380, with a volume of 1,715,629 shares traded. The stock had previously closed at $127.21.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on CBRS shares. Weiss Ratings downgraded shares of Cerebras Systems from a “sell (d)” rating to a “sell (d-)” rating in a research report on Friday, September 25th. Needham & Company LLC reissued a “buy” rating and set a $300.00 price target on shares of Cerebras Systems in a research report on Wednesday, August 19th. Morgan Stanley raised their price objective on Cerebras Systems from $273.00 to $279.00 and gave the stock an “overweight” rating in a research note on Thursday, August 13th. Freedom Capital upgraded Cerebras Systems from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 2nd. Finally, Citigroup reduced their target price on Cerebras Systems from $340.00 to $320.00 and set a “buy” rating on the stock in a report on Thursday, August 13th. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Cerebras Systems currently has an average rating of “Moderate Buy” and a consensus price target of $299.90.

Cerebras Systems Stock Performance

The company has a quick ratio of 5.80, a current ratio of 5.82 and a debt-to-equity ratio of 0.02. The stock has a market capitalization of $29.40 billion and a PE ratio of -1,542.17. The stock’s fifty day moving average price is $191.68.

Cerebras Systems (NASDAQ:CBRS) last issued its quarterly earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.21) by ($2.77). The firm had revenue of $209.87 million for the quarter. The company’s quarterly revenue was up 74.3% compared to the same quarter last year. Analysts anticipate that Cerebras Systems Inc. will post -0.52 earnings per share for the current fiscal year.

Insider Buying and Selling at Cerebras Systems

In other Cerebras Systems news, Director Steven Vassallo sold 50,000 shares of the business’s stock in a transaction that occurred 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 transaction, the director directly owned 171,977 shares in the company, valued at $36,166,763.10. The trade was a 22.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Eric Vishria sold 68,268 shares of the company’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $229.77, for a total value of $15,685,938.36. Following the sale, the director owned 31,383 shares of the company’s stock, valued at $7,210,871.91. The trade was a 68.51% 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. Over the last quarter, insiders sold 1,864,452 shares of company stock valued at $387,680,754.

Institutional Trading of Cerebras Systems

Several institutional investors and hedge funds have recently modified their holdings of CBRS. Wealth Enhancement Trust Services Inc. acquired a new stake in Cerebras Systems in the third quarter valued at about $26,000. GK Wealth Management LLC bought a new position in Cerebras Systems in the third quarter valued at about $31,000. Silicon Valley Capital Partners bought a new position in Cerebras Systems in the second quarter valued at about $44,000. B. Riley Wealth Advisors Inc. raised its stake in 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 acquiring an additional 221 shares in the last quarter. Finally, Mather Group LLC. acquired a new position in Cerebras Systems during the third quarter worth about $44,000.

About Cerebras Systems

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.