Insider Selling: Cerebras Systems (NASDAQ:CBRS) COO Sells $8,641,913.58 in Stock

Cerebras Systems Inc. (NASDAQ:CBRS) COO Dhiraj Mallick sold 38,889 shares of the firm’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $222.22, for a total value of $8,641,913.58. Following the completion of the sale, the chief operating officer directly owned 120,000 shares in the company, valued at approximately $26,666,400. The trade was a 24.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Dhiraj Mallick also recently made the following trade(s):

• On Tuesday, June 30th, Dhiraj Mallick sold 10,000 shares of Cerebras Systems stock. The stock was sold at an average price of $206.51, for a total transaction of $2,065,100.00.
• On Thursday, June 25th, Dhiraj Mallick sold 36,131 shares of Cerebras Systems stock. The shares were sold at an average price of $169.28, for a total transaction of $6,116,255.68.
• On Friday, June 26th, Dhiraj Mallick sold 20,000 shares of Cerebras Systems stock. The shares were sold at an average price of $173.73, for a total transaction of $3,474,600.00.
• On Thursday, June 25th, Dhiraj Mallick sold 13,314 shares of Cerebras Systems stock. The stock was sold at an average price of $184.89, for a total transaction of $2,461,625.46.

Cerebras Systems Stock Performance

Shares of NASDAQ:CBRS opened at $196.13 on Friday. The business has a fifty day moving average of $208.25. Cerebras Systems Inc. has a one year low of $160.81 and a one year high of $386.34.

Cerebras Systems (NASDAQ:CBRS) last posted its quarterly earnings data on Wednesday, August 12th. The company reported ($2.98) earnings per share 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 company’s revenue was up 74.3% on a year-over-year basis. Research analysts expect that Cerebras Systems Inc. will post -0.52 EPS for the current fiscal year.

Analyst Ratings Changes

Several equities research analysts have issued reports on CBRS shares. Weiss Ratings assumed coverage on Cerebras Systems in a research note on Thursday, August 13th. They set a “sell (d)” rating for the company. Craig Hallum began coverage on Cerebras Systems in a research report on Monday, June 8th. They set a “buy” rating and a $325.00 price objective on the stock. Barclays assumed coverage on Cerebras Systems in a report on Monday, June 8th. They set an “overweight” rating and a $280.00 price objective on the stock. Mizuho dropped their target price on Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating for the company in a research report on Thursday, August 13th. Finally, Zacks Research raised Cerebras Systems to a “hold” rating in a research note on Tuesday, June 9th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Cerebras Systems currently has an average rating of “Moderate Buy” and a consensus price target of $299.90.

Hedge Funds Weigh In On Cerebras Systems

A number of large investors have recently added to or reduced their stakes in CBRS. Tiger Pacific Capital LP purchased a new stake in Cerebras Systems during the second quarter valued at about $221,000. TD Waterhouse Canada Inc. purchased a new position in shares of Cerebras Systems in the second quarter worth about $630,000. Fortitude Advisory Group L.L.C. purchased a new position in shares of Cerebras Systems in the second quarter worth about $705,000. Proficio Capital Partners LLC bought a new stake in shares of Cerebras Systems in the 2nd quarter valued at about $1,383,000. Finally, Situational Awareness LP bought a new stake in shares of Cerebras Systems in the 2nd quarter valued at about $2,210,000.

More Cerebras Systems News

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

• Positive Sentiment: Cerebras’ new CS-4 accelerator is being promoted as a high-performance, power-efficient solution for AI inference, potentially helping the company compete with NVIDIA and AMD as demand for cloud-based AI computing expands. The performance claims still require broader customer validation. CS-4 and competition article
• Positive Sentiment: Cerebras partnered with Callosum to provide ultra-low-latency, heterogeneous AI inference for agentic applications. The agreement could expand Cerebras’ commercial reach in real-time AI workloads. Cerebras and Callosum partnership
• Positive Sentiment: Rosenblatt Securities and Needham & Company reiterated “Buy” ratings, with reported price targets near $300. The positive analyst view reflects optimism about Cerebras’ AI infrastructure growth, though it has not offset near-term selling pressure. Rosenblatt rating Needham rating
• Positive Sentiment: Call-option activity was about 42% above normal, indicating that some traders are positioning for a rebound or further upside. CBRS options activity
• Neutral Sentiment: Cerebras generated $209.9 million in quarterly revenue, up 74.3% year over year, but the growth has yet to translate into profitability. Investors are focused on whether CS-4 demand can improve margins and earnings.
• Negative Sentiment: Senior executives sold roughly $20.3 million of CBRS stock in transactions dated August 18, including sales by the CEO, COO, CTO and CAO. The filings state the shares were sold to cover tax withholding related to vested equity awards, reducing the bearish signal, but the scale of the transactions may still weigh on sentiment.
• Negative Sentiment: The company’s latest quarterly loss of $2.98 per share was far worse than the expected $0.21 loss. The large earnings miss, despite rapid revenue growth, raises concerns about execution, cash usage and the stock’s elevated valuation.

About Cerebras Systems

Cerebras Systems is a technology company focused on building artificial intelligence infrastructure, including hardware and software designed to accelerate deep learning and large-scale AI workloads. The company is best known for its wafer-scale processor architecture, which is intended to provide high-performance compute for training and inference applications.

In addition to its AI chips, Cerebras offers systems and related software tools that support researchers and enterprises working with machine learning models.