Cerebras Systems (NASDAQ:CBRS) Shares Down 5.7% – What’s Next?

Cerebras Systems Inc. (NASDAQ:CBRS) fell 5.7% during mid-day trading on Wednesday. The stock traded as low as $105.36 and last traded at $112.56. Approximately 18,791,732 shares traded hands during mid-day trading, an increase of 143% from the average daily volume of 7,729,792 shares. The stock had previously closed at $119.31.

Cerebras Systems News Summary

Here are the key news stories impacting Cerebras Systems this week:

• Positive Sentiment: Oracle Cloud partnership expands distribution. Cerebras announced that its AI inference technology will be available through Oracle Cloud Infrastructure, giving AI labs, enterprises, and developers access to its Wafer-Scale Engine. Oracle’s inclusion adds a major cloud channel and follows Cerebras’ relationships with other leading providers, supporting the company’s growth narrative. Cerebras and Oracle Team Up to Bring Cerebras AI Inference to Oracle Cloud Infrastructure
• Positive Sentiment: Investors see differentiated AI infrastructure potential. Cerebras’ wafer-scale chips, inference-focused offerings, and partnerships with companies including Amazon and AMD could improve AI-processing speed and efficiency, although the profitability of its various partnership models remains unproven. Cerebras: The Ultrafast AI Play Trading At A Discount
• Neutral Sentiment: Oracle’s broader chip strategy brings both validation and competition. Oracle is adding Cerebras alongside Nvidia and Google offerings, potentially increasing customer access while placing Cerebras in direct comparison with larger, established chip suppliers. Oracle expands chip supply deal with Nvidia, adds Google and Cerebras offerings
• Negative Sentiment: Culper Research’s short report triggered the selloff. The short seller questioned the useful lifespan and durability of Cerebras’ chips, raising concerns about customer economics, product sustainability, and the company’s valuation. The report appears to have reversed some of the optimism generated by the Oracle announcement. Cerebras Stock Drops After Culper Research Report Questions Chip Lifespan
• Negative Sentiment: A 19.4 million-share lockup expiration could add selling pressure. The newly unlocked shares increase the potential supply available to trade, which may weigh on CBRS while investors assess insider and early-investor selling activity. Cerebras Oracle Cloud Lockup Wave

Analysts Set New Price Targets

CBRS has been the topic of several analyst reports. Wall Street Zen upgraded shares of Cerebras Systems from a “sell” rating to a “hold” rating in a report on Saturday, August 15th. Jefferies Financial Group raised shares of Cerebras Systems to an “outperform” rating in a research report on Monday, October 5th. Wedbush increased their price objective on shares of Cerebras Systems from $280.00 to $290.00 and gave the company an “outperform” rating in a research note on Thursday, August 13th. Mizuho reduced their target price on Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating for the company in a report on Thursday, August 13th. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $300.00 price target on shares of Cerebras Systems in a report on Wednesday, August 19th. 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 issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $289.90.

Cerebras Systems Price Performance

The business’s 50 day moving average price is $174.99. The company has a market cap of $26.74 billion and a PE ratio of -1,407.00. 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 results on Wednesday, August 12th. The company reported ($2.98) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.21) by ($2.77). The firm had revenue of $209.87 million for the quarter. The business’s revenue was up 74.3% on a year-over-year basis. As a group, equities research analysts predict that Cerebras Systems Inc. will post -0.52 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CAO Yagnesh Patel sold 1,320 shares of the business’s stock in a transaction dated Monday, September 28th. The stock was sold at an average price of $204.50, for a total value of $269,940.00. Following the sale, the chief accounting officer directly owned 15,356 shares in the company, valued at approximately $3,140,302. The trade was a 7.92% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Robert Patrick Jr. Komin sold 32,500 shares of the company’s stock in a transaction dated Tuesday, September 29th. The shares were 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 in the company, valued at approximately $6,242,265.10. This trade represents a 51.45% 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 ninety days, insiders sold 1,864,452 shares of company stock valued at $387,680,754.

Hedge Funds Weigh In On Cerebras Systems

Large investors have recently modified their holdings of the business. Birinyi Associates Inc. bought a new position in shares of Cerebras Systems in the third quarter worth approximately $370,000. Choreo LLC bought a new position in Cerebras Systems during the 3rd quarter valued at about $492,000. D.A. Davidson & CO. purchased a new position in shares of Cerebras Systems during the third quarter valued at approximately $896,000. BOKF NA purchased a new stake in Cerebras Systems during the third quarter valued at $1,972,000. Finally, Parametrica Management Ltd bought a new position in Cerebras Systems in the third quarter worth approximately $888,000.

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.