Cerebras Systems (NASDAQ:CBRS) Shares Up 7.9% – Time to Buy?

Shares of Cerebras Systems Inc. (NASDAQ:CBRS) rose 7.9% during mid-day trading on Wednesday. The stock traded as high as $103.23 and last traded at $101.08. 8,970,271 shares changed hands during trading, an increase of 13% from the average session volume of 7,961,159 shares. The stock had previously closed at $93.66.

More Cerebras Systems News

These are some of the CBRS news items that stood out recently:

• Positive Sentiment: Pre-earnings coverage points to strong AI inference demand and growing cloud adoption, while one report says Wedbush remains bullish and expects another earnings beat. These expectations may support sentiment ahead of the company’s Q3 report. Cerebras tipped for another earnings beat
• Neutral Sentiment: Investors are focused on the Q3 results expected Nov. 12. Earnings previews flag demand and cloud adoption as potential strengths, but margins, ongoing losses and valuation are key risks to watch. Should You Buy, Sell, or Hold Cerebras Systems Stock Before Q3 Earnings?
• Negative Sentiment: Analyst caution is a headwind: Wedbush reportedly cut its price target by $100, while Morgan Stanley issued a pessimistic forecast. Lower targets can temper expectations for the stock. Wedbush cuts its Cerebras price target Morgan Stanley forecast

Wall Street Analyst Weigh In

A number of analysts recently weighed in on CBRS shares. Jefferies Financial Group upgraded Cerebras Systems to an “outperform” rating in a report on Monday, October 5th. Freedom Capital raised Cerebras Systems from a “hold” rating to a “strong-buy” rating in a report on Friday, October 2nd. TD Cowen reduced their price target on Cerebras Systems from $275.00 to $175.00 and set a “buy” rating on the stock in a research report on Monday, October 19th. Morgan Stanley decreased their price target on Cerebras Systems from $279.00 to $178.00 and set an “overweight” rating for the company in a research note on Monday. Finally, UBS Group cut their price objective on Cerebras Systems from $330.00 to $250.00 and set a “buy” rating on the stock in a research note on Monday, November 2nd. 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 company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $261.80.

Cerebras Systems Stock Up 7.9%

The firm has a market capitalization of $24.01 billion and a price-to-earnings ratio of -1,263.50. The business has a 50 day moving average of $155.82. The company has a debt-to-equity ratio of 0.02, a quick ratio of 5.80 and a current ratio of 5.82.

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 business had revenue of $209.87 million during the quarter. The firm’s revenue for the quarter was up 74.3% compared to the same quarter last year. Equities analysts expect that Cerebras Systems Inc. will post -0.52 EPS for the current year.

Insider Activity at Cerebras Systems

In other news, CTO Sean Lie sold 710,247 shares of the stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $207.86, for a total transaction of $147,631,941.42. Following the transaction, the chief technology officer owned 368,926 shares of the company’s stock, valued at $76,684,958.36. This represents a 65.81% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, COO Dhiraj Mallick sold 396,000 shares of the firm’s stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $204.04, for a total value of $80,799,840.00. Following the completion of the sale, the chief operating officer 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,924,452 shares of company stock worth $394,628,154 over the last ninety days.

Institutional Investors Weigh In On Cerebras Systems

A number of hedge funds have recently added to or reduced their stakes in CBRS. Westpac Banking Corp increased its holdings in shares of Cerebras Systems by 113.5% during the third quarter. Westpac Banking Corp now owns 8,826 shares of the company’s stock valued at $1,568,000 after acquiring an additional 4,693 shares in the last quarter. Tyche Wealth Partners LLC acquired a new stake in Cerebras Systems in the 3rd quarter valued at $302,000. Ieq Capital LLC increased its stake in Cerebras Systems by 82.1% during the 3rd quarter. Ieq Capital LLC now owns 3,223 shares of the company’s stock valued at $573,000 after purchasing an additional 1,453 shares in the last quarter. Z3 Capital Partners LLC acquired a new stake in shares of Cerebras Systems in the 3rd quarter worth about $1,190,000. Finally, Voya Investment Management LLC lifted its holdings in shares of Cerebras Systems by 177.1% in the third quarter. Voya Investment Management LLC now owns 123,858 shares of the company’s stock valued at $22,003,000 after purchasing an additional 79,158 shares in the last quarter.

About Cerebras Systems

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.