Cerebras Systems (NASDAQ:CBRS) Sets New 12-Month Low – Should You Sell?

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

Cerebras Systems News Roundup

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

Analyst Upgrades and Downgrades

CBRS has been the subject of several recent analyst reports. Rosenblatt Securities restated a “buy” rating and issued a $300.00 price target on shares of Cerebras Systems in a research note on Wednesday, August 19th. Jefferies Financial Group upgraded shares of Cerebras Systems to an “outperform” rating in a research report on Monday, October 5th. TD Cowen lowered their target price on shares of Cerebras Systems from $275.00 to $175.00 and set a “buy” rating on the stock in a report on Monday, October 19th. UBS Group dropped their target price on shares of Cerebras Systems from $330.00 to $250.00 and set a “buy” rating for the company in a research report on Monday. Finally, Citigroup cut their target price on shares of Cerebras Systems from $340.00 to $320.00 and set a “buy” rating for the company in a research note on Thursday, August 13th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $281.90.

Cerebras Systems Stock Down 2.6%

The company has a debt-to-equity ratio of 0.02, a current ratio of 5.82 and a quick ratio of 5.80. The company has a fifty day moving average price of $165.07. The stock has a market capitalization of $22.63 billion and a PE ratio of -1,199.60.

Cerebras Systems (NASDAQ:CBRS) last posted its earnings results on Wednesday, August 12th. The company reported ($2.98) EPS for the quarter, missing analysts’ consensus estimates of ($0.21) by ($2.77). The company 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, research analysts expect that Cerebras Systems Inc. will post -0.52 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Robert Patrick Jr. Komin sold 32,500 shares of the company’s stock in a transaction that occurred on Tuesday, September 29th. The stock was sold at an average price of $203.53, for a total transaction of $6,614,725.00. Following the sale, the chief financial officer directly owned 30,670 shares of the company’s stock, valued at $6,242,265.10. This represents a 51.45% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Sean Lie sold 60,000 shares of the company’s stock in a transaction that occurred on Tuesday, October 27th. The stock was sold at an average price of $115.79, for a total value of $6,947,400.00. Following the sale, the chief technology officer directly owned 263,592 shares in the company, valued at $30,521,317.68. This trade represents a 18.54% 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 have sold 1,924,452 shares of company stock worth $394,628,154.

Hedge Funds Weigh In On Cerebras Systems

Several institutional investors have recently bought and sold shares of the business. McGuire Investment Group LLC grew its stake in shares of Cerebras Systems by 7.6% in the 3rd quarter. McGuire Investment Group LLC now owns 1,420 shares of the company’s stock worth $252,000 after buying an additional 100 shares in the last quarter. Wealth Enhancement Trust Services Inc. bought a new stake in shares of Cerebras Systems in the 3rd quarter worth about $26,000. Blue Bell Private Wealth Management LLC purchased a new stake in shares of Cerebras Systems during the 3rd quarter valued at about $31,000. GK Wealth Management LLC bought a new position in shares of Cerebras Systems in the 3rd quarter valued at about $31,000. Finally, Silicon Valley Capital Partners bought a new position in shares of Cerebras Systems in the 2nd quarter valued at 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.