Cerebras Systems (NASDAQ:CBRS) Sets New 12-Month Low After Insider Selling

Cerebras Systems Inc. (NASDAQ:CBRS) shares reached a new 52-week low during mid-day trading on Wednesday following insider selling activity. The stock traded as low as $105.36 and last traded at $108.2430, with a volume of 12,528,431 shares trading hands. The stock had previously closed at $119.31.

Specifically, CTO Sean Lie sold 60,000 shares of the firm’s stock in a transaction that occurred on Tuesday, October 27th. The shares were sold at an average price of $115.79, for a total value of $6,947,400.00. Following the sale, the chief technology officer owned 263,592 shares in the company, valued at approximately $30,521,317.68. This trade represents a 18.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

A number of analysts have weighed in on CBRS shares. TD Cowen reduced their price target on shares of Cerebras Systems from $275.00 to $175.00 and set a “buy” rating for the company in a report on Monday, October 19th. Citigroup dropped their target price on shares of Cerebras Systems from $340.00 to $320.00 and set a “buy” rating for the company in a report on Thursday, August 13th. Wall Street Zen upgraded Cerebras Systems from a “sell” rating to a “hold” rating in a research note on Saturday, August 15th. UBS Group upped their price objective on shares of Cerebras Systems from $320.00 to $330.00 and gave the company a “buy” rating in a research note on Thursday, August 13th. Finally, Jefferies Financial Group upgraded Cerebras Systems to an “outperform” rating in a research report on Monday, October 5th. 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. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $289.90.

Cerebras Systems News Roundup

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

• Positive Sentiment: Cerebras’ partnerships with Oracle Cloud Infrastructure and AWS are expanding access to its AI inference technology. The deals strengthen its position as an alternative to traditional GPU-based systems and could support future usage and revenue growth. Cerebras expands AI footprint with Oracle
• Neutral Sentiment: Intel’s latest results beat earnings expectations but included weaker guidance. The shortfall was tied primarily to soft PC demand rather than AI spending, making the read-through to Cerebras’ AI business limited, although it may still weigh on sentiment across semiconductor stocks. Why Cerebras Stock Dropped Today
• Neutral Sentiment: CTO Sean Lie sold 60,000 shares worth about $6.95 million, reducing his direct stake by 18.54%. Because the sale was conducted under a pre-arranged Rule 10b5-1 plan, it is a less concerning signal than discretionary insider selling, though the transaction may still attract investor attention. Cerebras CTO insider sale
• Negative Sentiment: Block & Leviton and Levi & Korsinsky announced investigations into possible securities-law violations, while Johnson Fistel is conducting a separate investigation following a short-seller report. These announcements increase legal and reputational risk and are likely contributing to selling pressure. Block and Leviton Cerebras investigation
• Negative Sentiment: Culper Research has questioned the expected lifespan and economics of Cerebras’ chips. The report adds uncertainty around product durability, long-term margins and the justification for CBRS’s valuation. In addition, a lockup expiration reportedly made approximately 19.4 million shares eligible for trading, increasing potential supply and selling pressure.

Cerebras Systems Trading Down 5.2%

The stock has a market capitalization of $25.94 billion and a PE ratio of -1,364.75. 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 stock has a 50 day moving average of $170.83.

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

Hedge Funds Weigh In On Cerebras Systems

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CBRS. Torren Management LLC bought a new position in shares of Cerebras Systems during the third quarter valued at $39,000. Blue Bell Private Wealth Management LLC bought a new position in Cerebras Systems during the third quarter worth about $31,000. Signature Equity Partners LLC increased its position in shares of Cerebras Systems by 141.4% during the third quarter. Signature Equity Partners LLC now owns 1,033 shares of the company’s stock valued at $184,000 after buying an additional 605 shares during the period. Sumitomo Mitsui Trust Group Inc. increased its position in shares of Cerebras Systems by 59.6% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 490,139 shares of the company’s stock worth $87,073,000 after purchasing an additional 183,035 shares during the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. bought a new position in Cerebras Systems during the third quarter valued at approximately $1,874,000.

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.