Cerebras Systems (NASDAQ:CBRS) Stock Price Down 3.3% – Here’s Why

Cerebras Systems Inc. (NASDAQ:CBRS) shares fell 3.3% on Thursday. The company traded as low as $93.87 and last traded at $97.75. Approximately 13,689,990 shares traded hands during trading, an increase of 71% from the average session volume of 7,991,486 shares. The stock had previously closed at $101.08.

Top Cerebras Systems Stories

Investors following CBRS have been watching these stories:

• Positive Sentiment: Third-quarter revenue reached a record: the release reported $210.8 million in GAAP revenue and $230.9 million in Core revenue; cloud revenue grew sharply year over year. Cerebras also announced commercial wins with two new hyperscalers and said 700 megawatts of data-center capacity is under contract. Cerebras third-quarter results and outlook
• Neutral Sentiment: The company reported quarterly EPS of $0.13 and revenue of $230.87 million. The provided reports do not state whether EPS exceeded expectations. Cerebras earnings information
• Negative Sentiment: Pomerantz LLP said it is investigating potential claims on behalf of Cerebras investors. The announcement may weigh on sentiment, though it does not establish wrongdoing or provide details of any claims. Investor investigation announcement

Wall Street Analysts Forecast Growth

CBRS has been the subject of a number of research analyst reports. Freedom Capital upgraded Cerebras Systems from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 2nd. TD Cowen dropped their price target 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. Mizuho cut their price objective on Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating on the stock in a report on Thursday, August 13th. Wall Street Zen upgraded Cerebras Systems from a “sell” rating to a “hold” rating in a research note on Saturday, August 15th. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $300.00 target price on shares of Cerebras Systems in a report on Wednesday, August 19th. Two research 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 issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $261.80.

Cerebras Systems Stock Down 3.3%

The firm has a market cap of $23.22 billion and a PE ratio of -1,221.88. The company has a 50 day simple moving average of $154.39. 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 earnings results on Thursday, November 12th. The company reported $0.13 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.13) by $0.26. The business had revenue of $230.87 million for the quarter. On average, analysts predict that Cerebras Systems Inc. will post -0.52 earnings per share for the current fiscal year.

Insider Buying and Selling at Cerebras Systems

In related news, CTO Sean Lie sold 710,247 shares of the firm’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $207.86, for a total transaction of $147,631,941.42. Following the sale, the chief technology officer directly owned 368,926 shares of the company’s stock, valued at $76,684,958.36. This trade represents a 65.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Andrew D. Feldman sold 237,559 shares of Cerebras Systems stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $199.27, for a total value of $47,338,381.93. Following the transaction, the chief executive officer owned 16,853 shares of the company’s stock, valued at approximately $3,358,297.31. This represents a 93.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 1,924,452 shares of company stock worth $394,628,154.

Hedge Funds Weigh In On Cerebras Systems

Institutional investors have recently made changes to their positions in the company. McGuire Investment Group LLC lifted 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 valued at $252,000 after purchasing an additional 100 shares during the period. Wealth Enhancement Trust Services Inc. acquired a new stake in Cerebras Systems during the third quarter valued at $26,000. Blue Bell Private Wealth Management LLC acquired a new stake in Cerebras Systems during the third quarter valued at $31,000. GK Wealth Management LLC purchased a new position in Cerebras Systems in the third quarter valued at $31,000. Finally, Silicon Valley Capital Partners purchased a new position in Cerebras Systems in the second quarter valued at $44,000.

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.