Cerebras Systems Sees Unusually High Options Volume (NASDAQ:CBRS)

Cerebras Systems Inc. (NASDAQ:CBRS) was the target of unusually large options trading on Monday. Stock investors purchased 63,080 call options on the stock. This is an increase of approximately 59% compared to the average daily volume of 39,550 call options.

Analyst Upgrades and Downgrades

CBRS has been the subject of several analyst reports. TD Cowen assumed coverage on shares of Cerebras Systems in a research report on Monday, June 8th. They set a “buy” rating and a $275.00 price target for the company. Wedbush lifted their price objective on Cerebras Systems from $270.00 to $280.00 and gave the stock an “outperform” rating in a report on Wednesday, June 24th. Needham & Company LLC reissued a “buy” rating and issued a $300.00 target price on shares of Cerebras Systems in a research note on Wednesday, June 24th. Zacks Research upgraded Cerebras Systems to a “hold” rating in a report on Tuesday, June 9th. Finally, Freedom Capital upgraded Cerebras Systems to a “hold” rating in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $299.30.

Insider Buying and Selling at Cerebras Systems

In other Cerebras Systems news, COO Dhiraj Mallick sold 36,131 shares of the stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $169.28, for a total transaction of $6,116,255.68. Following the transaction, the chief operating officer directly owned 33,314 shares in the company, valued at $5,639,393.92. This trade represents a 52.03% decrease in their ownership of the stock. The sale was disclosed in a legal 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. Also, CEO Andrew D. Feldman sold 17,990 shares of Cerebras Systems stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $173.06, for a total transaction of $3,113,349.40. Following the transaction, the chief executive officer directly owned 17,990 shares in the company, valued at $3,113,349.40. This trade represents a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 107,547 shares of company stock valued at $18,611,699 over the last ninety days.

Key Headlines Impacting Cerebras Systems

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

• Positive Sentiment: Cerebras has continued to draw bullish attention after its latest quarterly report beat expectations on both earnings and revenue, which helped support recent upside in the stock.
• Positive Sentiment: Several major analysts recently reaffirmed or raised their bullish views, including buy/overweight ratings and higher price targets, which can help reinforce investor confidence in the company’s AI growth story.
• Positive Sentiment: The stock has also seen unusually heavy call-option buying, suggesting traders are positioning for further upside and increased speculative interest in CBRS.
• Neutral Sentiment: Freedom Capital upgraded Cerebras to hold, which is less supportive than a buy rating but still indicates the shares are being watched favorably relative to weaker names. Freedom Capital upgrade to hold
• Negative Sentiment: Multiple law firms have announced investigations into possible securities-law violations involving Cerebras, including a new investor-alert headline, which may be weighing on sentiment despite no wrongdoing being established.
• Negative Sentiment: Recent insider selling by several executives — including the CEO, CTO, COO, and CAO — is another overhang, even though the company says the sales were largely tied to tax withholding on vested equity awards.

Cerebras Systems Trading Down 0.4%

CBRS opened at $220.09 on Wednesday. Cerebras Systems has a 52-week low of $160.81 and a 52-week high of $386.34.

Cerebras Systems (NASDAQ:CBRS) last announced its quarterly earnings results on Tuesday, June 23rd. The company reported ($0.04) EPS for the quarter, topping analysts’ consensus estimates of ($0.14) by $0.10. The business had revenue of $193.41 million during the quarter, compared to analysts’ expectations of $180.70 million.

Cerebras Systems Company Profile

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.