Cerebras Systems Sees Unusually Large Options Volume (NASDAQ:CBRS)

Cerebras Systems Inc. (NASDAQ:CBRS) was the target of some unusual options trading on Friday. Stock traders acquired 56,676 call options on the company. This represents an increase of approximately 19% compared to the average volume of 47,713 call options.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on CBRS shares. Weiss Ratings lowered shares of Cerebras Systems from a “sell (d)” rating to a “sell (d-)” rating in a report on Wednesday, November 4th. Freedom Capital upgraded shares of Cerebras Systems from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 2nd. Wall Street Zen raised Cerebras Systems from a “sell” rating to a “hold” rating in a research note on Saturday, August 15th. UBS Group lowered their target price on Cerebras Systems from $250.00 to $155.00 and set a “buy” rating for the company in a research note on Friday. Finally, Citigroup dropped their target price on Cerebras Systems from $340.00 to $320.00 and set a “buy” rating for the company in a report on Thursday, August 13th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $237.80.

Insider Buying and Selling at Cerebras Systems

In other Cerebras Systems news, COO Dhiraj Mallick sold 396,000 shares of Cerebras Systems stock in a transaction dated 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 owned 396,000 shares of the company’s stock, valued at $80,799,840. The trade was a 50.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Sean Lie sold 60,000 shares of the business’s stock in a transaction that occurred on 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 completion of the sale, the chief technology officer owned 263,592 shares of the company’s stock, valued at $30,521,317.68. The trade was a 18.54% 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 ninety days, insiders have sold 1,874,452 shares of company stock valued at $383,719,154.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Washington University boosted its position in shares of Cerebras Systems by 175.3% during the third quarter. Washington University now owns 1,517,400 shares of the company’s stock valued at $269,566,000 after purchasing an additional 966,314 shares in the last quarter. Value Aligned Research Advisors LLC purchased a new position in Cerebras Systems during the second quarter valued at $241,934,000. Wellington Management Group LLP bought a new stake in Cerebras Systems in the second quarter worth $194,853,000. Lunate Capital Ltd bought a new stake in Cerebras Systems in the third quarter worth $115,351,000. Finally, State Street Corp bought a new stake in Cerebras Systems in the second quarter worth $105,343,000.

More Cerebras Systems News

Investors following CBRS have been watching these news items:

• Positive Sentiment: Cerebras reported record third-quarter core revenue of $230.9 million and EPS of $0.13, ahead of analysts’ expectations for a loss. Cloud revenue grew sharply year over year, reflecting robust demand for its AI computing services. Read More.
• Positive Sentiment: A newly announced Microsoft customer relationship, two additional hyperscaler wins and 700 megawatts of data-center capacity under contract strengthen Cerebras’ growth prospects and its effort to compete in AI computing. Read More.
• Negative Sentiment: Execution remains a risk: Cerebras delayed delivery of some AI capacity for OpenAI because of data-center construction delays, and direct chip sales reportedly fell even as cloud revenue surged. A law firm also announced an investor-claims investigation. Read More.

Cerebras Systems Price Performance

CBRS traded up $10.97 during midday trading on Friday, reaching $108.72. 36,767,398 shares of the company’s stock traded hands, compared to its average volume of 11,213,264. The firm has a fifty day moving average price of $151.02. The company has a market cap of $25.83 billion and a PE ratio of -1,359.00. The company has a quick ratio of 5.80, a current ratio of 5.82 and a debt-to-equity ratio of 0.02. Cerebras Systems has a 52 week low of $77.84 and a 52 week high of $386.34.

Cerebras Systems (NASDAQ:CBRS) last issued its quarterly earnings data on Thursday, November 12th. The company reported $0.13 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.26. The business had revenue of $230.87 million during the quarter. Sell-side analysts forecast that Cerebras Systems will post -0.52 EPS for the current year.

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.