Cerebras Systems (NASDAQ:CBRS) Stock Jumps 1.5% – Here’s Why

Shares of Cerebras Systems Inc. (NASDAQ:CBRS) rose 1.5% during trading on Tuesday. The stock traded as high as $102.27 and last traded at $97.82. Approximately 9,289,856 shares traded hands during mid-day trading, an increase of 19% from the average daily volume of 7,824,169 shares. The stock had previously closed at $96.36.

More Cerebras Systems News

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

• Positive Sentiment: UBS cut its price target to $250 from $330 but maintained a Buy rating, implying substantial upside from the recent share price. The bullish view contrasts with the recent selloff. UBS price-target update
• Positive Sentiment: Q3 consensus estimates and recent upward estimate revisions could help validate the company’s outlook. Cerebras says it has secured more than 600 MW of capacity and expects revenue to more than triple in 2027; work with AMD and AWS on inference could also improve throughput and capacity economics. Cerebras Q3 and 2027 outlook
• Neutral Sentiment: Law firms have announced investigations into Cerebras concerning potential securities-law issues. These are investigations, not findings of wrongdoing, but could add uncertainty for investors. Investor investigation announcement
• Negative Sentiment: The immediate pressure stems from a short-seller report, alongside reports of insider selling and speculation that a major customer may have left. Shares have reached a record low, and increased put-option buying signals heightened investor demand for downside protection. Report on Cerebras shares hitting a low

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on CBRS shares. UBS Group reduced their target price on shares of Cerebras Systems from $330.00 to $250.00 and set a “buy” rating for the company in a research report on Monday. Needham & Company LLC reiterated a “buy” rating and issued a $300.00 price objective on shares of Cerebras Systems in a research note on Wednesday, August 19th. Citigroup reduced their price objective on Cerebras Systems from $340.00 to $320.00 and set a “buy” rating for the company in a report on Thursday, August 13th. Wedbush raised their target price on Cerebras Systems from $280.00 to $290.00 and gave the stock an “outperform” rating in a research report on Thursday, August 13th. Finally, Rosenblatt Securities restated a “buy” rating and issued a $300.00 target price on shares of Cerebras Systems in a research note on Wednesday, August 19th. 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 issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $281.90.

Cerebras Systems Price Performance

The firm has a market cap of $23.24 billion and a PE ratio of -1,222.75. The company has a current ratio of 5.82, a quick ratio of 5.80 and a debt-to-equity ratio of 0.02. The firm has a 50 day moving average price of $166.82.

Cerebras Systems (NASDAQ:CBRS) last posted its quarterly earnings results 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 for the quarter. Cerebras Systems’s quarterly revenue was up 74.3% compared to the same quarter last year. Analysts anticipate that Cerebras Systems Inc. will post -0.52 earnings per share for the current year.

Insider Buying and Selling at Cerebras Systems

In other news, COO Dhiraj Mallick sold 396,000 shares of the firm’s stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $204.04, for a total value of $80,799,840.00. Following the completion of the transaction, 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 transaction was disclosed in a legal filing 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, Director Steven Vassallo sold 50,000 shares of Cerebras Systems stock in a transaction on Friday, September 4th. The shares were sold at an average price of $210.30, for a total value of $10,515,000.00. Following the completion of the transaction, the director owned 171,977 shares of the company’s stock, valued at approximately $36,166,763.10. This trade represents a 22.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 1,924,452 shares of company stock worth $394,628,154.

Institutional Trading of Cerebras Systems

A number of institutional investors have recently added to or reduced their stakes in the stock. Frank Rimerman Advisors LLC raised its holdings in shares of Cerebras Systems by 3,681.7% during the third quarter. Frank Rimerman Advisors LLC now owns 56,271 shares of the company’s stock valued at $9,997,000 after acquiring an additional 54,783 shares in the last quarter. ICG Advisors LLC boosted its stake in shares of Cerebras Systems by 179.9% in the 3rd quarter. ICG Advisors LLC now owns 15,000 shares of the company’s stock worth $2,665,000 after buying an additional 9,641 shares during the last quarter. NFSG Corp grew its holdings in shares of Cerebras Systems by 1,483.7% in the third quarter. NFSG Corp now owns 8,821 shares of the company’s stock worth $1,567,000 after acquiring an additional 8,264 shares during the period. Cohen Capital Management Inc. bought a new stake in shares of Cerebras Systems in the third quarter worth $1,444,000. Finally, State Street Corp purchased a new stake in Cerebras Systems during the second quarter valued at $105,343,000.

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.