Cerebras Systems (NASDAQ:CBRS) Stock Falls 5.7% – Should You Sell?

Cerebras Systems Inc. (NASDAQ:CBRS)’s share price traded down 5.7% during mid-day trading on Wednesday. The stock traded as low as $105.36 and last traded at $112.56. Approximately 18,791,732 shares were traded during mid-day trading, an increase of 143% from the average session volume of 7,729,792 shares. The stock had previously closed at $119.31.

More Cerebras Systems News

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

• Positive Sentiment: Oracle Cloud partnership expands distribution. Cerebras announced that its AI inference technology will be available through Oracle Cloud Infrastructure, giving AI labs, enterprises, and developers access to its Wafer-Scale Engine. Oracle’s inclusion adds a major cloud channel and follows Cerebras’ relationships with other leading providers, supporting the company’s growth narrative. Cerebras and Oracle Team Up to Bring Cerebras AI Inference to Oracle Cloud Infrastructure
• Positive Sentiment: Investors see differentiated AI infrastructure potential. Cerebras’ wafer-scale chips, inference-focused offerings, and partnerships with companies including Amazon and AMD could improve AI-processing speed and efficiency, although the profitability of its various partnership models remains unproven. Cerebras: The Ultrafast AI Play Trading At A Discount
• Neutral Sentiment: Oracle’s broader chip strategy brings both validation and competition. Oracle is adding Cerebras alongside Nvidia and Google offerings, potentially increasing customer access while placing Cerebras in direct comparison with larger, established chip suppliers. Oracle expands chip supply deal with Nvidia, adds Google and Cerebras offerings
• Negative Sentiment: Culper Research’s short report triggered the selloff. The short seller questioned the useful lifespan and durability of Cerebras’ chips, raising concerns about customer economics, product sustainability, and the company’s valuation. The report appears to have reversed some of the optimism generated by the Oracle announcement. Cerebras Stock Drops After Culper Research Report Questions Chip Lifespan
• Negative Sentiment: A 19.4 million-share lockup expiration could add selling pressure. The newly unlocked shares increase the potential supply available to trade, which may weigh on CBRS while investors assess insider and early-investor selling activity. Cerebras Oracle Cloud Lockup Wave

Analysts Set New Price Targets

CBRS has been the topic of a number of recent analyst reports. UBS Group raised their price target on Cerebras Systems from $320.00 to $330.00 and gave the company a “buy” rating in a report on Thursday, August 13th. TD Cowen cut their target price on Cerebras Systems from $275.00 to $175.00 and set a “buy” rating for the company in a research report on Monday, October 19th. Wedbush lifted their target price on Cerebras Systems from $280.00 to $290.00 and gave the company an “outperform” rating in a research note on Thursday, August 13th. Wall Street Zen raised Cerebras Systems from a “sell” rating to a “hold” rating in a research note on Saturday, August 15th. Finally, Citigroup lowered their price target on Cerebras Systems from $340.00 to $320.00 and set a “buy” rating on the stock in a report on Thursday, August 13th. Two 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 assigned a Sell rating to the company’s stock. According to MarketBeat, Cerebras Systems currently has a consensus rating of “Moderate Buy” and a consensus target price of $289.90.

Cerebras Systems Trading Down 5.7%

The company’s 50-day moving average price is $174.99. The company has a debt-to-equity ratio of 0.02, a current ratio of 5.82 and a quick ratio of 5.80. The firm has a market cap of $26.74 billion and a PE ratio of -1,407.00.

Cerebras Systems (NASDAQ:CBRS) last posted its quarterly earnings data on Wednesday, August 12th. The company reported ($2.98) earnings per share (EPS) 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 quarterly revenue was up 74.3% compared to the same quarter last year. On average, equities research analysts predict that Cerebras Systems Inc. will post -0.52 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Andrew D. Feldman sold 237,559 shares of Cerebras Systems stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $199.27, for a total transaction of $47,338,381.93. Following the completion of the sale, the chief executive officer owned 16,853 shares of the company’s stock, valued at approximately $3,358,297.31. The trade was a 93.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CTO Sean Lie sold 710,247 shares of the business’s stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $207.86, for a total value of $147,631,941.42. Following the completion of the sale, the chief technology officer owned 368,926 shares of the company’s stock, valued at $76,684,958.36. The trade was a 65.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,864,452 shares of company stock worth $387,680,754 over the last ninety days.

Institutional Trading of Cerebras Systems

A number of hedge funds have recently added to or reduced their stakes in CBRS. Birinyi Associates Inc. purchased a new position in Cerebras Systems during the third quarter valued at approximately $370,000. Choreo LLC bought a new stake in Cerebras Systems during the third quarter valued at about $492,000. D.A. Davidson & CO. purchased a new position in Cerebras Systems in the third quarter valued at about $896,000. BOKF NA purchased a new position in Cerebras Systems in the third quarter valued at about $1,972,000. Finally, Parametrica Management Ltd bought a new position in Cerebras Systems in the third quarter worth about $888,000.

About Cerebras Systems

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.