Cerebras Systems (NASDAQ:CBRS) Stock Falls 5.1% on Analyst Downgrade

Cerebras Systems Inc. (NASDAQ:CBRS)’s stock price fell 5.1% during mid-day trading on Monday 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 $120.12 and last traded at $120.66. 11,525,599 shares changed hands during mid-day trading, an increase of 53% from the average session volume of 7,520,132 shares. The stock had previously closed at $127.21.

A number of other brokerages have also recently issued reports on CBRS. Wedbush boosted their target price on Cerebras Systems from $280.00 to $290.00 and gave the stock an “outperform” rating in a report on Thursday, August 13th. Wall Street Zen upgraded shares of Cerebras Systems from a “sell” rating to a “hold” rating in a report on Saturday, August 15th. Citigroup reduced their price target on shares of Cerebras Systems from $340.00 to $320.00 and set a “buy” rating on the stock in a research report 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 research report on Thursday, August 13th. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $300.00 price objective on shares of Cerebras Systems in a research note on Wednesday, August 19th. Two investment 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 given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $289.90.

Insider Activity at Cerebras Systems

In other news, CTO Sean Lie sold 120,000 shares of Cerebras Systems stock in a transaction that occurred on Friday, September 25th. The shares were sold at an average price of $208.97, for a total transaction of $25,076,400.00. Following the sale, the chief technology officer owned 309,569 shares in the company, valued at $64,690,633.93. This trade represents a 27.93% decrease in their ownership of the stock. The transaction 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, CAO Yagnesh Patel sold 1,320 shares of the business’s stock in a transaction on Monday, September 28th. The stock was sold at an average price of $204.50, for a total transaction of $269,940.00. Following the transaction, the chief accounting officer directly owned 15,356 shares in the company, valued at approximately $3,140,302. The trade was a 7.92% decrease in their ownership of the stock. 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 three months, insiders have sold 1,864,452 shares of company stock valued at $387,680,754.

Hedge Funds Weigh In On Cerebras Systems

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Value Aligned Research Advisors LLC acquired a new position in shares of Cerebras Systems in the second quarter worth about $241,934,000. Wellington Management Group LLP purchased a new position in Cerebras Systems in the second quarter valued at about $194,853,000. State Street Corp purchased a new position in Cerebras Systems in the second quarter valued at about $105,343,000. Dragoneer Investment Group LLC purchased a new stake in Cerebras Systems during the 2nd quarter worth approximately $88,400,000. Finally, Montanova Capital LLC acquired a new position in shares of Cerebras Systems in the 2nd quarter valued at approximately $37,990,000.

Cerebras Systems Trading Down 2.0%

The firm has a market capitalization of $28.09 billion and a P/E ratio of -1,478.00. 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 company’s 50-day moving average is $187.16.

Cerebras Systems (NASDAQ:CBRS) last released its quarterly earnings results 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 for the quarter. The business’s revenue for the quarter was up 74.3% compared to the same quarter last year. On average, research analysts forecast that Cerebras Systems Inc. will post -0.52 EPS for the current year.

About Cerebras Systems

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.