Stock Traders Buy Large Volume of Put Options on Cerebras Systems (NASDAQ:CBRS)

Cerebras Systems Inc. (NASDAQ:CBRS) saw some unusual options trading on Friday. Traders acquired 76,734 put options on the company. This is an increase of approximately 72% compared to the typical daily volume of 44,721 put options.

Cerebras Systems Trading Down 10.6%

Shares of CBRS stock traded down $15.09 during trading hours on Friday, hitting $127.08. 8,546,137 shares of the company were exchanged, compared to its average volume of 7,444,612. Cerebras Systems has a 52 week low of $127.00 and a 52 week high of $386.34. The company has a quick ratio of 5.80, a current ratio of 5.82 and a debt-to-equity ratio of 0.02. The company has a 50 day moving average of $193.67. The stock has a market cap of $30.19 billion and a P/E ratio of -1,592.45.

Cerebras Systems (NASDAQ:CBRS) last posted its quarterly earnings data on Wednesday, August 12th. The company reported ($2.98) EPS for the quarter, missing the consensus estimate of ($0.21) by ($2.77). The company had revenue of $209.87 million for the quarter. Cerebras Systems’s quarterly revenue was up 74.3% compared to the same quarter last year. On average, research analysts forecast that Cerebras Systems will post -0.52 EPS for the current year.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the stock. Freedom Capital upgraded shares of Cerebras Systems from a “hold” rating to a “strong-buy” rating in a report on Friday, October 2nd. UBS Group lifted their price target on shares of Cerebras Systems from $320.00 to $330.00 and gave the stock a “buy” rating in a research report on Thursday, August 13th. Rosenblatt Securities reissued a “buy” rating and issued a $300.00 price target on shares of Cerebras Systems in a report on Wednesday, August 19th. Citigroup decreased their price target on shares of Cerebras Systems from $340.00 to $320.00 and set a “buy” rating for the company in a report on Thursday, August 13th. Finally, Needham & Company LLC restated a “buy” rating and issued a $300.00 price objective on shares of Cerebras Systems in a research report on Wednesday, August 19th. Two 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 given a Sell rating to the company’s stock. According to MarketBeat, Cerebras Systems presently has a consensus rating of “Moderate Buy” and a consensus target price of $299.90.

Insiders Place Their Bets

In related news, CTO Sean Lie sold 710,247 shares of Cerebras Systems stock in a transaction on 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 completion of the sale, the chief technology officer directly owned 368,926 shares of the company’s stock, valued at $76,684,958.36. The trade was a 65.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Dhiraj Mallick sold 396,000 shares of the company’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 $80,799,840. This represents a 50.00% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,864,452 shares of company stock worth $387,680,754 over the last three months.

Institutional Trading of Cerebras Systems

Hedge funds and other institutional investors have recently modified their holdings of the company. Value Aligned Research Advisors LLC bought a new stake in shares of Cerebras Systems in the second quarter worth $241,934,000. Wellington Management Group LLP bought a new position in Cerebras Systems in the second quarter valued at $194,853,000. State Street Corp acquired a new stake in Cerebras Systems in the 2nd quarter valued at $105,343,000. Dragoneer Investment Group LLC bought a new stake in Cerebras Systems during the 2nd quarter worth about $88,400,000. Finally, Montanova Capital LLC bought a new stake in Cerebras Systems during the 2nd quarter worth 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.