Cerebras Systems (NASDAQ:CBRS) Stock Price Down 2% on Analyst Downgrade

Shares of Cerebras Systems Inc. (NASDAQ:CBRS) traded down 2% on Tuesday after TD Cowen lowered their price target on the stock from $275.00 to $175.00. TD Cowen currently has a buy rating on the stock. Cerebras Systems traded as low as $116.22 and last traded at $118.24. 9,201,629 shares changed hands during trading, an increase of 22% from the average session volume of 7,516,375 shares. The stock had previously closed at $120.66.

Several other equities research analysts have also issued reports on the stock. Freedom Capital raised shares of Cerebras Systems from a “hold” rating to a “strong-buy” rating in a report on Friday, October 2nd. Citigroup decreased their target price on shares of Cerebras Systems from $340.00 to $320.00 and set a “buy” rating on the stock in a research note on Thursday, August 13th. UBS Group lifted their price target on shares of Cerebras Systems from $320.00 to $330.00 and gave the company a “buy” rating in a report on Thursday, August 13th. Morgan Stanley upped their price target on shares of Cerebras Systems from $273.00 to $279.00 and gave the stock an “overweight” rating in a research report on Thursday, August 13th. Finally, Weiss Ratings cut shares of Cerebras Systems from a “sell (d)” rating to a “sell (d-)” rating in a research note on Friday, September 25th. 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. According to MarketBeat.com, Cerebras Systems currently has an average rating of “Moderate Buy” and a consensus target price of $289.90.

Insider Activity at Cerebras Systems

In other Cerebras Systems news, Director Steven Vassallo sold 50,000 shares of the stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $210.30, for a total transaction of $10,515,000.00. Following the completion of the sale, the director directly owned 171,977 shares of the company’s stock, valued at $36,166,763.10. This trade represents a 22.52% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CAO Yagnesh Patel sold 1,320 shares of the stock in a transaction that occurred on Monday, September 28th. The shares were sold at an average price of $204.50, for a total transaction of $269,940.00. Following the sale, the chief accounting officer directly owned 15,356 shares of the company’s stock, valued at approximately $3,140,302. This trade represents a 7.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,864,452 shares of company stock worth $387,680,754 in the last three months.

Hedge Funds Weigh In On Cerebras Systems

Hedge funds have recently modified their holdings of the stock. Prime Capital Investment Advisors LLC bought a new position in shares of Cerebras Systems during the third quarter worth $368,000. ICG Advisors LLC increased its holdings in Cerebras Systems by 179.9% in the 3rd quarter. ICG Advisors LLC now owns 15,000 shares of the company’s stock valued at $2,665,000 after acquiring an additional 9,641 shares during the last quarter. CWA Asset Management Group LLC lifted its stake in Cerebras Systems by 140.3% in the 3rd quarter. CWA Asset Management Group LLC now owns 6,694 shares of the company’s stock worth $1,189,000 after purchasing an additional 3,908 shares in the last quarter. IFP Advisors Inc lifted its stake in Cerebras Systems by 354.0% in the 3rd quarter. IFP Advisors Inc now owns 3,464 shares of the company’s stock worth $615,000 after purchasing an additional 2,701 shares in the last quarter. Finally, Frank Rimerman Advisors LLC lifted its stake in Cerebras Systems by 3,681.7% in the 3rd quarter. Frank Rimerman Advisors LLC now owns 56,271 shares of the company’s stock worth $9,997,000 after purchasing an additional 54,783 shares in the last quarter.

Cerebras Systems Stock Performance

The company’s fifty day moving average price is $189.49. The company has a market capitalization of $28.09 billion and a price-to-earnings ratio of -1,478.00. 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 quarterly earnings data on Wednesday, August 12th. The company reported ($2.98) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.21) by ($2.77). The firm had revenue of $209.87 million during the quarter. The company’s revenue was up 74.3% on a year-over-year basis. On average, equities research analysts predict that Cerebras Systems Inc. will post -0.52 earnings per share for the current year.

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.