Cerebras Systems (NASDAQ:CBRS) Stock Jumps 9.8% – Here’s Why

Cerebras Systems Inc. (NASDAQ:CBRS) shares traded up 9.8% on Friday. The stock traded as high as $90.29 and last traded at $89.68. 9,906,546 shares were traded during trading, an increase of 25% from the average session volume of 7,935,029 shares. The stock had previously closed at $81.71.

Wall Street Analysts Forecast Growth

Several brokerages have commented on CBRS. UBS Group decreased their price target on shares of Cerebras Systems from $330.00 to $250.00 and set a “buy” rating on the stock in a research note on Monday, November 2nd. Wall Street Zen upgraded Cerebras Systems from a “sell” rating to a “hold” rating in a research report on Saturday, August 15th. TD Cowen reduced their target price on Cerebras Systems from $275.00 to $175.00 and set a “buy” rating on the stock in a report on Monday, October 19th. Jefferies Financial Group upgraded Cerebras Systems to an “outperform” rating in a research report on Monday, October 5th. Finally, Morgan Stanley boosted their target price on Cerebras Systems from $273.00 to $279.00 and gave the stock an “overweight” rating in a research report on Thursday, August 13th. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Cerebras Systems has a consensus rating of “Moderate Buy” and an average target price of $281.90.

Cerebras Systems Stock Up 9.8%

The firm has a market capitalization of $21.30 billion and a PE ratio of -1,121.00. The firm’s 50 day moving average is $159.28. 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 issued its earnings results 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 firm had revenue of $209.87 million for the quarter. The business’s revenue was up 74.3% compared to the same quarter last year. On average, research analysts expect that Cerebras Systems Inc. will post -0.52 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Cerebras Systems news, CTO Sean Lie sold 60,000 shares of Cerebras Systems stock in a transaction dated Tuesday, October 27th. The stock was sold at an average price of $115.79, for a total value of $6,947,400.00. Following the transaction, the chief technology officer owned 263,592 shares in the company, valued at $30,521,317.68. The trade was a 18.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Yagnesh Patel sold 1,320 shares of Cerebras Systems stock in a transaction that occurred on Monday, September 28th. The stock was sold at an average price of $204.50, for a total transaction of $269,940.00. Following the completion of the transaction, the chief accounting officer directly owned 15,356 shares in the company, valued at approximately $3,140,302. The trade was a 7.92% 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. In the last 90 days, insiders have sold 1,924,452 shares of company stock worth $394,628,154.

Hedge Funds Weigh In On Cerebras Systems

A number of large investors have recently made changes to their positions in the business. ACT Capital Partners L.P. purchased a new stake in shares of Cerebras Systems during the third quarter valued at $444,000. Private Advisory Group LLC purchased a new stake in Cerebras Systems in the 3rd quarter worth approximately $1,065,000. Russell Investments Group Ltd. grew its position in Cerebras Systems by 855.0% during the third quarter. Russell Investments Group Ltd. now owns 91,686 shares of the company’s stock valued at $16,367,000 after buying an additional 82,085 shares during the period. Eurizon Capital SGR S.p.A. acquired a new position in Cerebras Systems in the 3rd quarter worth about $12,000,000. Finally, Fifth Third Bancorp boosted its position in Cerebras Systems by 114.2% during the third quarter. Fifth Third Bancorp now owns 3,314 shares of the company’s stock worth $589,000 after purchasing an additional 1,767 shares in the last quarter.

Cerebras Systems Company Profile

Cerebras Systems develops computing systems and software designed for artificial intelligence and other compute-intensive workloads. Its products are built around the Wafer-Scale Engine, a large processor designed to support AI model training and inference, and include the CS-3 system and related software.

The company also offers cloud-based access to its AI computing infrastructure, giving customers a way to run AI workloads without deploying its systems on site. Its offerings are aimed at organizations developing and operating large AI models, including businesses, research institutions and public-sector customers.

Founded in 2015, Cerebras is headquartered in Sunnyvale, California.