Cerebras Systems (NASDAQ:CBRS) Stock Price Up 2.3% – Here’s What Happened

Shares of Cerebras Systems Inc. (NASDAQ:CBRS) traded up 2.3% during mid-day trading on Thursday. The company traded as high as $119.87 and last traded at $115.16. 10,062,985 shares were traded during mid-day trading, an increase of 30% from the average daily volume of 7,760,084 shares. The stock had previously closed at $112.56.

More Cerebras Systems News

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

• Positive Sentiment: Cerebras is expanding access to its AI inference technology through Oracle Cloud Infrastructure and AWS. The partnerships give its Wafer-Scale Engine broader distribution among enterprises and AI developers, potentially supporting usage and future revenue while strengthening its competitive position against NVIDIA and Advanced Micro Devices. Cerebras Expands AI Footprint With Oracle
• Neutral Sentiment: Analyst-style forecasts show unusually wide potential outcomes for CBRS, with a cited bull case of $161.08 and bear case of $50.51. The range highlights substantial uncertainty and volatility rather than providing a clear near-term catalyst. Cerebras Stock Prediction
• Neutral Sentiment: CTO Sean Lie sold 60,000 shares worth approximately $6.95 million, reducing his position by 18.54%. Because the sale was made under a pre-arranged Rule 10b5-1 plan, it is a less conclusive bearish signal than discretionary insider selling. Cerebras CTO Insider Sale
• Negative Sentiment: Culper Research’s short report questioned the lifespan of Cerebras chips, raising concerns about product durability, replacement economics and the sustainability of the company’s valuation. The report triggered significant selling and has become the main source of near-term investor skepticism. Cerebras Systems Drops Following Short Report
• Negative Sentiment: Block & Leviton and Johnson Fistel announced investigations into possible securities-law violations following the short-seller report. The announcements do not establish wrongdoing, but they add headline, litigation and reputational risk for CBRS investors. Johnson Fistel Cerebras Investigation
• Negative Sentiment: Approximately 19.4 million shares became eligible for trading after a lockup expiration. The additional supply could increase selling pressure and limit the stock’s ability to recover from the recent short-report-driven decline. Cerebras Oracle Cloud Lockup Expiration

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Rosenblatt Securities restated a “buy” rating and set a $300.00 price objective on shares of Cerebras Systems in a research note on Wednesday, August 19th. Needham & Company LLC reissued a “buy” rating and issued a $300.00 target price on shares of Cerebras Systems in a report on Wednesday, August 19th. Morgan Stanley upped their price objective on Cerebras Systems from $273.00 to $279.00 and gave the stock an “overweight” rating in a research note on Thursday, August 13th. Wedbush increased 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, Wall Street Zen upgraded shares of Cerebras Systems from a “sell” rating to a “hold” rating in a research note on Saturday, August 15th. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $289.90.

Cerebras Systems Stock Up 2.3%

The business has a 50-day moving average of $172.84. The firm has a market cap of $27.36 billion and a PE ratio of -1,439.50. 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 (NASDAQ:CBRS) last released its quarterly earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.21) by ($2.77). The company had revenue of $209.87 million during the quarter. Cerebras Systems’s revenue for the quarter was up 74.3% on a year-over-year basis. As a group, analysts expect that Cerebras Systems Inc. will post -0.52 EPS for the current fiscal year.

Insider Buying and Selling at Cerebras Systems

In related news, CTO Sean Lie sold 710,247 shares of the company’s stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $207.86, for a total transaction of $147,631,941.42. Following the transaction, the chief technology officer directly owned 368,926 shares of the company’s stock, valued at approximately $76,684,958.36. The trade was a 65.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Dhiraj Mallick sold 396,000 shares of the stock in a transaction that occurred on Tuesday, September 29th. The stock was sold at an average price of $204.04, for a total transaction of $80,799,840.00. Following the completion of the sale, the chief operating officer directly owned 396,000 shares of the company’s stock, valued at $80,799,840. This trade represents a 50.00% decrease in their ownership of the stock. 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 have sold a total of 1,924,452 shares of company stock valued at $394,628,154 in the last ninety days.

Hedge Funds Weigh In On Cerebras Systems

Several institutional investors have recently bought and sold shares of the stock. Value Aligned Research Advisors LLC acquired a new stake in Cerebras Systems in the 2nd quarter worth approximately $241,934,000. Wellington Management Group LLP bought a new position in Cerebras Systems during the second quarter valued at about $194,853,000. State Street Corp acquired a new stake in Cerebras Systems during the second quarter worth $105,343,000. Dragoneer Investment Group LLC acquired a new stake in shares of Cerebras Systems during the 2nd quarter valued at about $88,400,000. Finally, Sumitomo Mitsui Trust Group Inc. increased its stake in Cerebras Systems by 59.6% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 490,139 shares of the company’s stock valued at $87,073,000 after acquiring an additional 183,035 shares during the period.

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.