Cerebras Systems (NASDAQ:CBRS) Stock Price Up 1.7% – Should You Buy?

Cerebras Systems Inc. (NASDAQ:CBRS) shares rose 1.7% during mid-day trading on Tuesday. The stock traded as high as $150.00 and last traded at $149.09. 8,026,610 shares changed hands during mid-day trading, an increase of 9% from the average daily volume of 7,384,541 shares. The stock had previously closed at $146.62.

Analyst Upgrades and Downgrades

Several analysts recently commented on CBRS shares. Wall Street Zen raised shares of Cerebras Systems from a “sell” rating to a “hold” rating in a research report on Saturday, August 15th. Wedbush upped their target price on shares of Cerebras Systems from $280.00 to $290.00 and gave the stock an “outperform” rating in a research note on Thursday, August 13th. Citigroup dropped their target price on shares of Cerebras Systems from $340.00 to $320.00 and set a “buy” rating on the stock in a research note on Thursday, August 13th. Freedom Capital upgraded shares of Cerebras Systems from a “hold” rating to a “strong-buy” rating in a report on Friday, October 2nd. Finally, Mizuho reduced their price target on shares of Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating for the company in a research report on Thursday, August 13th. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $299.90.

Cerebras Systems Stock Performance

The company has a debt-to-equity ratio of 0.02, a quick ratio of 5.80 and a current ratio of 5.82. The firm has a market capitalization of $33.77 billion and a price-to-earnings ratio of -1,777.12. The stock has a 50-day moving average price of $195.06.

Cerebras Systems (NASDAQ:CBRS) last announced its quarterly earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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% compared to the same quarter last year. As a group, sell-side analysts anticipate that Cerebras Systems Inc. will post -0.52 EPS for the current fiscal year.

Insider Activity at Cerebras Systems

In related news, Director Steven Vassallo sold 50,000 shares of the firm’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $210.30, for a total value of $10,515,000.00. Following the sale, the director owned 171,977 shares in the company, valued at approximately $36,166,763.10. This trade represents a 22.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Eric Vishria sold 68,268 shares of Cerebras Systems stock in a transaction on Monday, August 17th. The stock was sold at an average price of $229.77, for a total value of $15,685,938.36. Following the completion of the sale, the director directly owned 31,383 shares of the company’s stock, valued at $7,210,871.91. The trade was a 68.51% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,864,452 shares of company stock valued at $387,680,754 over the last quarter.

Hedge Funds Weigh In On Cerebras Systems

Large investors have recently added to or reduced their stakes in the company. Value Aligned Research Advisors LLC bought a new position in shares of Cerebras Systems in the second quarter worth about $241,934,000. Wellington Management Group LLP bought a new stake in Cerebras Systems in the second quarter worth $194,853,000. State Street Corp bought a new stake in shares of Cerebras Systems in the 2nd quarter worth about $105,343,000. Dragoneer Investment Group LLC purchased a new stake in shares of Cerebras Systems during the 2nd quarter valued at about $88,400,000. Finally, Montanova Capital LLC purchased a new stake in shares of Cerebras Systems during the 2nd quarter valued at about $37,990,000.

Cerebras Systems Company Profile

Cerebras Systems is an artificial intelligence computing company that develops specialized hardware and software for training and deploying large AI models. The company’s technology is designed to address the computational demands of generative AI, deep learning and other data-intensive workloads.

Its core products include the Wafer-Scale Engine, a purpose-built AI processor produced on a single silicon wafer, and the CS-3 AI supercomputer, which incorporates that processor into an integrated computing system.