UBS Group Issues Pessimistic Forecast for Cerebras Systems (NASDAQ:CBRS) Stock Price

Cerebras Systems (NASDAQ:CBRS) had its target price dropped by analysts at UBS Group from $250.00 to $155.00 in a report issued on Friday, Benzinga reports. The brokerage currently has a “buy” rating on the stock. UBS Group‘s price objective points to a potential upside of 46.75% from the company’s previous close.

CBRS has been the topic of a number of other reports. Mizuho set a $240.00 target price on shares of Cerebras Systems in a research report on Friday. Citigroup cut their target price on shares of Cerebras Systems from $340.00 to $320.00 and set a “buy” rating on the stock in a report on Thursday, August 13th. Jefferies Financial Group upgraded shares of Cerebras Systems to an “outperform” rating in a research report on Monday, October 5th. Wedbush set a $205.00 price target on shares of Cerebras Systems in a research note on Friday. Finally, TD Cowen lowered their price objective on shares of Cerebras Systems from $275.00 to $175.00 and set a “buy” rating on the stock in a research report on Monday, October 19th. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $237.80.

Cerebras Systems Stock Up 8.1%

NASDAQ:CBRS traded up $7.87 during mid-day trading on Friday, reaching $105.62. 22,367,411 shares of the stock were exchanged, compared to its average volume of 8,139,307. The firm has a market capitalization of $25.09 billion and a PE ratio of -1,315.45. Cerebras Systems has a 1 year low of $77.84 and a 1 year high of $386.34. The company has a 50 day moving average of $152.65. The company has a debt-to-equity ratio of 0.02, a current ratio of 5.82 and a quick ratio of 5.80.

Cerebras Systems (NASDAQ:CBRS) last issued its quarterly earnings data on Thursday, November 12th. The company reported $0.13 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.26. The firm had revenue of $230.87 million during the quarter. As a group, research analysts predict that Cerebras Systems will post -0.52 EPS for the current year.

Insider Buying and Selling at Cerebras Systems

In related news, CTO Sean Lie sold 60,000 shares of the stock in a transaction on Tuesday, October 27th. The stock was sold at an average price of $115.79, for a total transaction of $6,947,400.00. Following the completion of the sale, the chief technology officer directly owned 263,592 shares of the company’s stock, valued at $30,521,317.68. This trade represents a 18.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Feldman sold 37,441 shares of Cerebras Systems stock in a transaction on Friday, September 4th. The shares were sold at an average price of $210.46, for a total transaction of $7,879,832.86. Following the completion of the transaction, the chief executive officer owned 16,853 shares in the company, valued at approximately $3,546,882.38. This trade represents a 68.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 1,874,452 shares of company stock valued at $383,719,154.

Institutional Trading of Cerebras Systems

Hedge funds and other institutional investors have recently made changes to their positions in the company. Palumbo Wealth Management LLC lifted its holdings in shares of Cerebras Systems by 59.4% during the 3rd quarter. Palumbo Wealth Management LLC now owns 3,840 shares of the company’s stock worth $682,000 after acquiring an additional 1,431 shares during the period. AlphaGrep UK Ltd purchased a new position in Cerebras Systems in the 3rd quarter worth approximately $435,000. Benjamin Edwards Inc. acquired a new stake in Cerebras Systems during the 3rd quarter valued at $694,000. BNP Paribas acquired a new stake in Cerebras Systems during the 3rd quarter valued at approximately $244,000. Finally, State Street Corp increased its stake in shares of Cerebras Systems by 15.2% in the third quarter. State Street Corp now owns 549,086 shares of the company’s stock worth $97,545,000 after buying an additional 72,423 shares during the last quarter.

Top Cerebras Systems Stories

These are some of the CBRS stories that stood out recently:

• Positive Sentiment: Cerebras reported $230.9 million in third-quarter core revenue and earnings of $0.13 per share, above the consensus estimate of a loss of $0.13. It raised full-year revenue guidance to $940 million–$960 million, versus the $887 million consensus, and forecast fourth-quarter revenue of $310 million–$330 million, ahead of estimates. Reuters report on raised forecast
• Positive Sentiment: Call-option trading was above its typical level, suggesting increased speculative bullish interest, though options activity is not a guarantee of future performance.
• Negative Sentiment: Cerebras has delayed delivery of AI capacity for OpenAI because of data-center construction delays, creating a near-term execution risk. Separately, a law firm announced an investor-claims investigation, which could add legal uncertainty. Report on OpenAI delivery delay Investor investigation announcement

Cerebras Systems Company Profile

Cerebras Systems develops computing systems and software designed for artificial intelligence and other compute-intensive workloads. Its products are built around the Wafer-Scale Engine, a large processor designed to support AI model training and inference, and include the CS-3 system and related software. The company also offers cloud-based access to its AI computing infrastructure, giving customers a way to run AI workloads without deploying its systems on site. Its offerings are aimed at organizations developing and operating large AI models, including businesses, research institutions and public-sector customers.