Cerebras Systems (NASDAQ:CBRS) Shares Up 1.5% – Here’s Why

Cerebras Systems Inc. (NASDAQ:CBRS) was up 1.5% during trading on Tuesday. The stock traded as high as $102.27 and last traded at $97.82. 9,289,856 shares traded hands during trading, an increase of 19% from the average session volume of 7,824,169 shares. The stock had previously closed at $96.36.

Cerebras Systems News Summary

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

• Positive Sentiment: UBS cut its price target to $250 from $330 but maintained a Buy rating, implying substantial upside from the recent share price. The bullish view contrasts with the recent selloff. UBS price-target update
• Positive Sentiment: Q3 consensus estimates and recent upward estimate revisions could help validate the company’s outlook. Cerebras says it has secured more than 600 MW of capacity and expects revenue to more than triple in 2027; work with AMD and AWS on inference could also improve throughput and capacity economics. Cerebras Q3 and 2027 outlook
• Neutral Sentiment: Law firms have announced investigations into Cerebras concerning potential securities-law issues. These are investigations, not findings of wrongdoing, but could add uncertainty for investors. Investor investigation announcement
• Negative Sentiment: The immediate pressure stems from a short-seller report, alongside reports of insider selling and speculation that a major customer may have left. Shares have reached a record low, and increased put-option buying signals heightened investor demand for downside protection. Report on Cerebras shares hitting a low

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on CBRS. Wall Street Zen raised shares of Cerebras Systems from a “sell” rating to a “hold” rating in a report on Saturday, August 15th. Rosenblatt Securities reaffirmed a “buy” rating and set a $300.00 target price on shares of Cerebras Systems in a report on Wednesday, August 19th. Mizuho decreased their price target on shares of Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating on the stock in a research report on Thursday, August 13th. Jefferies Financial Group upgraded shares of Cerebras Systems to an “outperform” rating in a research note on Monday, October 5th. Finally, Needham & Company LLC reissued a “buy” rating and set a $300.00 price objective on shares of Cerebras Systems in a research report on Wednesday, August 19th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $281.90.

Cerebras Systems Stock Up 1.5%

The company has a current ratio of 5.82, a quick ratio of 5.80 and a debt-to-equity ratio of 0.02. The company has a market capitalization of $23.24 billion and a PE ratio of -1,222.75. The company has a 50 day moving average price of $166.82.

Cerebras Systems (NASDAQ:CBRS) last announced its quarterly earnings data on Wednesday, August 12th. The company reported ($2.98) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.21) by ($2.77). The company had revenue of $209.87 million during the quarter. The business’s quarterly revenue was up 74.3% on a year-over-year basis. Equities analysts predict that Cerebras Systems Inc. will post -0.52 earnings per share for the current fiscal year.

Insider Buying and Selling at Cerebras Systems

In other news, CTO Sean Lie sold 710,247 shares of the firm’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $207.86, for a total transaction of $147,631,941.42. Following the sale, the chief technology officer directly owned 368,926 shares in the company, valued at $76,684,958.36. This trade represents a 65.81% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Dhiraj Mallick sold 396,000 shares of Cerebras Systems stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $204.04, for a total transaction of $80,799,840.00. Following the transaction, the chief operating officer owned 396,000 shares in the company, valued at approximately $80,799,840. This trade 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. Over the last three months, insiders have sold 1,924,452 shares of company stock valued at $394,628,154.

Institutional Investors Weigh In On Cerebras Systems

A number of institutional investors have recently bought and sold shares of the business. Wealth Enhancement Trust Services Inc. purchased a new position in shares of Cerebras Systems in the third quarter valued at about $26,000. Blue Bell Private Wealth Management LLC purchased a new stake in shares of Cerebras Systems during the third quarter worth about $31,000. GK Wealth Management LLC purchased a new stake in shares of Cerebras Systems during the third quarter worth about $31,000. Silicon Valley Capital Partners bought a new stake in Cerebras Systems during the 2nd quarter valued at approximately $44,000. Finally, Torren Management LLC bought a new stake in Cerebras Systems during the 3rd quarter valued at approximately $39,000.

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.