Cerebras Systems (NASDAQ:CBRS) Stock Price Down 11% – Should You Sell?

Cerebras Systems Inc. (NASDAQ:CBRS)’s stock price fell 11% during mid-day trading on Thursday. The company traded as low as $77.84 and last traded at $81.71. Approximately 15,827,159 shares changed hands during trading, an increase of 100% from the average session volume of 7,908,074 shares. The stock had previously closed at $91.85.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on CBRS shares. Wall Street Zen upgraded shares of Cerebras Systems from a “sell” rating to a “hold” rating in a research note on Saturday, August 15th. Rosenblatt Securities reiterated a “buy” rating and issued a $300.00 price target on shares of Cerebras Systems in a research report on Wednesday, August 19th. Freedom Capital raised shares of Cerebras Systems from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 2nd. UBS Group decreased their price objective on shares of Cerebras Systems from $330.00 to $250.00 and set a “buy” rating on the stock in a research report on Monday. Finally, Wedbush lifted their target price on shares of Cerebras Systems from $280.00 to $290.00 and gave the company an “outperform” rating in a research note on Thursday, August 13th. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $281.90.

Cerebras Systems Stock Performance

The company has a debt-to-equity ratio of 0.02, a current ratio of 5.82 and a quick ratio of 5.80. The firm has a market capitalization of $19.41 billion and a P/E ratio of -1,021.37. The business has a fifty day moving average of $163.23.

Cerebras Systems (NASDAQ:CBRS) last announced its quarterly earnings data 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 business had revenue of $209.87 million for the quarter. The company’s revenue was up 74.3% compared to the same quarter last year. As a group, equities analysts predict that Cerebras Systems Inc. will post -0.52 EPS for the current year.

Insider Activity

In other Cerebras Systems news, Director Eric Vishria sold 68,268 shares of the business’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $229.77, for a total value of $15,685,938.36. Following the sale, the director owned 31,383 shares in the company, valued at $7,210,871.91. The trade was a 68.51% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Dhiraj Mallick sold 396,000 shares of the business’s stock in a transaction on 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 in the company, valued at approximately $80,799,840. The trade was a 50.00% 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. Insiders have sold 1,924,452 shares of company stock valued at $394,628,154 in the last quarter.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in CBRS. Value Aligned Research Advisors LLC purchased a new stake in shares of Cerebras Systems in the second quarter worth about $241,934,000. Wellington Management Group LLP bought a new position in Cerebras Systems during the second quarter valued at approximately $194,853,000. Lunate Capital Ltd purchased a new position in Cerebras Systems during the 3rd quarter valued at approximately $115,351,000. Sumitomo Mitsui Trust Group Inc. grew its holdings in Cerebras Systems by 59.6% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 490,139 shares of the company’s stock valued at $87,073,000 after buying an additional 183,035 shares in the last quarter. Finally, State Street Corp purchased a new stake in shares of Cerebras Systems during the 2nd quarter worth approximately $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.