Cerebras Systems (NASDAQ:CBRS) Shares Down 7.7% – Here’s What Happened

Cerebras Systems Inc. (NASDAQ:CBRS) traded down 7.7% during trading on Thursday. The company traded as low as $107.90 and last traded at $108.94. Approximately 10,709,654 shares changed hands during mid-day trading, an increase of 41% from the average daily volume of 7,575,882 shares. The stock had previously closed at $117.98.

Cerebras Systems News Roundup

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

• Positive Sentiment: A bullish Seeking Alpha analysis argues that the selloff has created an attractive entry point. Cerebras reported 103% year-over-year growth in second-quarter core revenue, $25.4 billion in remaining performance obligations and more than $8.6 billion in cash. Management expects 2027 core revenue to more than triple, while AMD integration could potentially increase throughput by approximately fivefold. Cerebras: I Waited For This Entry Point
• Positive Sentiment: Another analysis says Wall Street analysts continue to raise their price targets despite Cerebras Systems having fallen more than 60% since its initial public offering, implying significant potential upside if the company meets its growth forecasts. Cerebras Systems Analyst Price Target Outlook
• Neutral Sentiment: A broader AI-chip feature highlights Nvidia and Broadcom rather than Cerebras, underscoring strong industry demand but offering no direct new catalyst for CBRS. 3 Magnificent AI Chip Stocks That Could Help Set You Up for Life
• Neutral Sentiment: Market-data coverage for Cerebras Systems provided financial summary information without identifying a new company-specific development. Cerebras Systems Financial Summary
• Negative Sentiment: Zacks said Applied Optoelectronics currently has an edge over Cerebras in the AI-infrastructure race because of stronger optical demand, capacity expansion and a better earnings outlook. AAOI vs. CBRS
• Negative Sentiment: TD Cowen trimmed its price target, while a separate report cited an analyst downgrade. These actions add pressure after Cerebras missed the latest quarterly EPS consensus by a wide margin, despite 74.3% year-over-year revenue growth. Cerebras Stock Gets Price Target Trim Cerebras Stock Price Down on Analyst Downgrade

Analyst Ratings Changes

CBRS has been the subject of several recent research reports. Needham & Company LLC restated a “buy” rating and set a $300.00 target price on shares of Cerebras Systems in a report on Wednesday, August 19th. Jefferies Financial Group raised shares of Cerebras Systems to an “outperform” rating in a report on Monday, October 5th. Freedom Capital upgraded shares of Cerebras Systems from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 2nd. Rosenblatt Securities reissued a “buy” rating and set a $300.00 price objective on shares of Cerebras Systems in a research note on Wednesday, August 19th. Finally, TD Cowen dropped their price objective on shares of Cerebras Systems from $275.00 to $175.00 and set a “buy” rating for the company in a research note on Monday, October 19th. Two research 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 issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $289.90.

Cerebras Systems Stock Up 1.7%

The company has a market capitalization of $26.33 billion and a P/E ratio of -1,385.25. The company has a fifty day simple moving average of $179.68. The company has a debt-to-equity ratio of 0.02, a current ratio of 5.82 and a quick ratio of 5.80.

Cerebras Systems (NASDAQ:CBRS) last issued 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. Cerebras Systems’s revenue was up 74.3% on a year-over-year basis. As a group, research analysts forecast that Cerebras Systems Inc. will post -0.52 earnings per share for the current fiscal year.

Insider Transactions at Cerebras Systems

In other Cerebras Systems news, CEO Andrew Feldman sold 237,559 shares of the company’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $199.27, for a total value of $47,338,381.93. Following the transaction, the chief executive officer directly owned 16,853 shares in the company, valued at approximately $3,358,297.31. This represents a 93.38% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CTO Sean Lie sold 710,247 shares of the firm’s stock in a transaction dated 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 sale, the chief technology officer directly owned 368,926 shares in the company, valued at $76,684,958.36. This represents a 65.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,864,452 shares of company stock worth $387,680,754 in the last ninety days.

Hedge Funds Weigh In On Cerebras Systems

Several institutional investors and hedge funds have recently modified their holdings of the company. Value Aligned Research Advisors LLC acquired a new position in Cerebras Systems in the 2nd quarter valued at $241,934,000. Wellington Management Group LLP acquired a new stake in shares of Cerebras Systems during the second quarter worth $194,853,000. State Street Corp acquired a new stake in shares of 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 second quarter worth $88,400,000. Finally, Montanova Capital LLC purchased a new stake in shares of Cerebras Systems in the second quarter valued at $37,990,000.

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.