Cerebras Systems (NASDAQ:CBRS) Stock Sees Heavy Put Option Buying

Cerebras Systems Inc. (NASDAQ:CBRS) was the target of some unusual options trading on Friday. Stock investors bought 76,734 put options on the company. This is an increase of 72% compared to the typical volume of 44,721 put options.

Cerebras Systems Stock Performance

Shares of NASDAQ CBRS opened at $127.21 on Friday. The company has a market cap of $30.22 billion and a PE ratio of -1,590.12. 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 has a fifty-two week low of $126.05 and a fifty-two week high of $386.34. The company has a 50-day simple moving average of $191.68.

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

Insiders Place Their Bets

In other Cerebras Systems news, CFO Robert Patrick Jr. Komin sold 32,500 shares of the stock in a transaction that occurred on Tuesday, September 29th. The stock was sold at an average price of $203.53, for a total value of $6,614,725.00. Following the transaction, the chief financial officer owned 30,670 shares in the company, valued at approximately $6,242,265.10. This represents a 51.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Sean Lie sold 120,000 shares of the firm’s stock in a transaction that occurred on Friday, September 25th. The shares were sold at an average price of $208.97, for a total value of $25,076,400.00. Following the completion of the sale, the chief technology officer directly owned 309,569 shares of the company’s stock, valued at $64,690,633.93. This trade represents a 27.93% 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 sold a total of 1,864,452 shares of company stock worth $387,680,754 over the last three months.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of CBRS. Value Aligned Research Advisors LLC purchased a new stake in Cerebras Systems in the 2nd quarter valued at $241,934,000. Wellington Management Group LLP bought a new position in Cerebras Systems during the 2nd quarter valued at $194,853,000. State Street Corp bought a new position in Cerebras Systems during the 2nd quarter valued at $105,343,000. Dragoneer Investment Group LLC bought a new position in Cerebras Systems during the 2nd quarter valued at $88,400,000. Finally, Montanova Capital LLC purchased a new position in Cerebras Systems during the 2nd quarter worth $37,990,000.

Analysts Set New Price Targets

A number of brokerages recently issued reports on CBRS. Wall Street Zen upgraded Cerebras Systems from a “sell” rating to a “hold” rating in a report on Saturday, August 15th. Freedom Capital upgraded shares of Cerebras Systems from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 2nd. Mizuho decreased 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 note on Thursday, August 13th. Wedbush upped their price objective on shares of Cerebras Systems from $280.00 to $290.00 and gave the stock an “outperform” rating in a report on Thursday, August 13th. Finally, Weiss Ratings downgraded shares of Cerebras Systems from a “sell (d)” rating to a “sell (d-)” rating in a report on Friday, September 25th. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned 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, Cerebras Systems currently has a consensus rating of “Moderate Buy” and a consensus price target of $299.90.

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.