Cerebras Systems (NASDAQ:CBRS) Stock Price Down 11% – Should You Sell?

Cerebras Systems Inc. (NASDAQ:CBRS) was down 11% on Thursday. The company traded as low as $77.84 and last traded at $81.71. Approximately 15,827,159 shares were traded during trading, an increase of 100% from the average daily volume of 7,908,074 shares. The stock had previously closed at $91.85.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on CBRS. Wedbush lifted their target price on shares of Cerebras Systems from $280.00 to $290.00 and gave the company an “outperform” rating in a report on Thursday, August 13th. Morgan Stanley upped their price target on Cerebras Systems from $273.00 to $279.00 and gave the stock an “overweight” rating in a research note on Thursday, August 13th. Weiss Ratings raised Cerebras Systems from a “sell (d-)” rating to a “sell (d)” rating in a research report on Wednesday, October 21st. UBS Group lowered their price objective on Cerebras Systems from $330.00 to $250.00 and set a “buy” rating for the company in a research note on Monday. Finally, TD Cowen dropped their target price on Cerebras Systems from $275.00 to $175.00 and set a “buy” rating on the stock in a report on Monday, October 19th. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Cerebras Systems currently has a consensus rating of “Moderate Buy” and a consensus price target of $281.90.

Cerebras Systems Trading Down 11.0%

The firm has a market cap of $19.41 billion and a price-to-earnings ratio of -1,021.37. The business’s 50 day simple moving average is $163.23. The company has a debt-to-equity ratio of 0.02, a current ratio of 5.82 and a quick ratio of 5.80.

Cerebras Systems (NASDAQ:CBRS) last posted its quarterly earnings results 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 during the quarter. The firm’s revenue was up 74.3% on a year-over-year basis. Research analysts forecast that Cerebras Systems Inc. will post -0.52 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Eric Vishria sold 68,268 shares of the firm’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $229.77, for a total transaction of $15,685,938.36. Following the sale, the director owned 31,383 shares of the company’s stock, valued at $7,210,871.91. This trade represents a 68.51% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Steven Vassallo sold 50,000 shares of Cerebras Systems stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $210.30, for a total transaction of $10,515,000.00. Following the completion of the sale, the director owned 171,977 shares of the company’s stock, valued at $36,166,763.10. This represents a 22.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 1,924,452 shares of company stock worth $394,628,154 in the last quarter.

Institutional Investors Weigh In On Cerebras Systems

A number of large investors have recently added to or reduced their stakes in the stock. McGuire Investment Group LLC raised its holdings in Cerebras Systems by 7.6% in the 3rd quarter. McGuire Investment Group LLC now owns 1,420 shares of the company’s stock worth $252,000 after purchasing an additional 100 shares during the period. Wealth Enhancement Trust Services Inc. purchased a new position in Cerebras Systems during the third quarter valued at $26,000. Blue Bell Private Wealth Management LLC bought a new stake in Cerebras Systems during the third quarter valued at about $31,000. GK Wealth Management LLC bought a new stake in Cerebras Systems during the third quarter valued at about $31,000. Finally, Silicon Valley Capital Partners purchased a new stake in Cerebras Systems in the second quarter worth about $44,000.

Cerebras Systems Company Profile

Cerebras Systems is a technology company that develops specialized computing systems for artificial intelligence and high-performance computing. Its core product is the Wafer-Scale Engine, a processor designed to provide large-scale computing capacity and high-speed data movement for training and running AI models.

The company offers integrated AI computing systems, including the Cerebras CS series, which combines its wafer-scale processors with supporting hardware and software. Cerebras also provides access to its technology through cloud-based services, enabling businesses, research organizations and other users to develop and deploy AI applications without operating the underlying systems themselves.

Founded in 2015 and headquartered in Sunnyvale, California, Cerebras serves customers in sectors such as technology, government, scientific research and other data-intensive industries.