Cerebras Systems (NASDAQ:CBRS) Shares Down 2.2% – Time to Sell?

Cerebras Systems Inc. (NASDAQ:CBRS)’s share price dropped 2.2% during trading on Monday. The company traded as low as $106.27 and last traded at $108.37. Approximately 7,709,996 shares changed hands during mid-day trading, an increase of 2% from the average session volume of 7,581,396 shares. The stock had previously closed at $110.82.

Analyst Ratings Changes

Several research analysts have issued reports on the stock. Citigroup lowered their price objective on shares of Cerebras Systems from $340.00 to $320.00 and set a “buy” rating on the stock in a research report on Thursday, August 13th. Weiss Ratings upgraded shares of Cerebras Systems from a “sell (d-)” rating to a “sell (d)” rating in a research note on Wednesday. Needham & Company LLC reissued a “buy” rating and set a $300.00 price target on shares of Cerebras Systems in a report on Wednesday, August 19th. TD Cowen lowered their target price on Cerebras Systems from $275.00 to $175.00 and set a “buy” rating on the stock in a research note on Monday, October 19th. Finally, UBS Group upped their price target on Cerebras Systems from $320.00 to $330.00 and gave the stock a “buy” rating in a research note on Thursday, August 13th. Two investment 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 assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $289.90.

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 company has a market cap of $25.74 billion and a P/E ratio of -1,354.62. The company has a 50-day simple moving average of $179.68.

Cerebras Systems (NASDAQ:CBRS) last announced its quarterly earnings data 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 for the quarter. The firm’s revenue for the quarter was up 74.3% on a year-over-year basis. As a group, equities analysts anticipate that Cerebras Systems Inc. will post -0.52 earnings per share for the current year.

Insiders Place Their Bets

In related news, CTO Sean Lie sold 120,000 shares of the firm’s stock in a transaction that occurred on Friday, September 25th. The stock was sold at an average price of $208.97, for a total value of $25,076,400.00. Following the completion of the transaction, the chief technology officer directly owned 309,569 shares of the company’s stock, valued at $64,690,633.93. This trade represents a 27.93% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Dhiraj Mallick sold 396,000 shares of Cerebras Systems stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $204.04, for a total value of $80,799,840.00. Following the transaction, the chief operating officer directly owned 396,000 shares of the company’s stock, valued at approximately $80,799,840. This represents a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 1,864,452 shares of company stock worth $387,680,754.

Hedge Funds Weigh In On Cerebras Systems

Several hedge funds have recently added to or reduced their stakes in CBRS. Revolve Wealth Partners LLC acquired a new position in Cerebras Systems during the third quarter worth about $1,854,000. MN Wealth Advisors LLC grew its position in shares of Cerebras Systems by 40.9% in the third quarter. MN Wealth Advisors LLC now owns 1,813 shares of the company’s stock valued at $322,000 after purchasing an additional 526 shares during the last quarter. McGuire Investment Group LLC grew its position in shares of Cerebras Systems by 7.6% in the third quarter. McGuire Investment Group LLC now owns 1,420 shares of the company’s stock valued at $252,000 after purchasing an additional 100 shares during the last quarter. Valen Private Capital LLC acquired a new position in shares of Cerebras Systems during the 3rd quarter worth approximately $3,373,000. Finally, Beaumont Financial Advisors LLC purchased a new stake in Cerebras Systems in the 3rd quarter valued at approximately $629,000.

Cerebras Systems Company Profile

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.