Traders Purchase High Volume of Call Options on Cerebras Systems (NASDAQ:CBRS)

Cerebras Systems Inc. (NASDAQ:CBRS) was the recipient of some unusual options trading activity on Wednesday. Traders acquired 45,379 call options on the stock. This is an increase of 14% compared to the average daily volume of 39,652 call options.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the company. TD Cowen initiated coverage on Cerebras Systems in a report on Monday, June 8th. They set a “buy” rating and a $275.00 price objective for the company. Citigroup cut their target price on Cerebras Systems from $340.00 to $320.00 and set a “buy” rating on the stock 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 research note on Saturday, August 15th. Barclays assumed coverage on Cerebras Systems in a research report on Monday, June 8th. They set an “overweight” rating and a $280.00 target price on the stock. Finally, Rosenblatt Securities reissued a “buy” rating and issued a $300.00 price objective on shares of Cerebras Systems in a research report on Wednesday, August 19th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $299.90.

Insider Activity

In other news, CEO Andrew D. Feldman sold 237,559 shares of the firm’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $199.27, for a total value of $47,338,381.93. Following the completion of the sale, the chief executive officer directly owned 16,853 shares in the company, valued at $3,358,297.31. This trade represents a 93.38% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Eric Vishria sold 68,268 shares of the business’s stock in a transaction dated 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 completion of the sale, the director directly owned 31,383 shares of the company’s stock, valued at $7,210,871.91. The trade was a 68.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 1,864,452 shares of company stock valued at $387,680,754.

Hedge Funds Weigh In On Cerebras Systems

A number of large investors have recently made changes to their positions in CBRS. Value Aligned Research Advisors LLC bought a new stake in shares of Cerebras Systems during the 2nd quarter valued at $241,934,000. Wellington Management Group LLP bought a new position in Cerebras Systems in the 2nd quarter worth about $194,853,000. State Street Corp bought a new position in Cerebras Systems in the 2nd quarter worth about $105,343,000. Dragoneer Investment Group LLC purchased a new position in Cerebras Systems during the 2nd quarter valued at about $88,400,000. Finally, Montanova Capital LLC purchased a new position in Cerebras Systems during the 2nd quarter valued at about $37,990,000.

Cerebras Systems Stock Down 4.6%

CBRS opened at $169.52 on Friday. The stock has a 50-day simple moving average of $201.92. Cerebras Systems has a twelve month low of $160.81 and a twelve month high of $386.34. 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 stock has a market capitalization of $40.27 billion and a P/E ratio of -2,119.00.

Cerebras Systems (NASDAQ:CBRS) last announced its quarterly earnings results on Wednesday, August 12th. The company reported ($2.98) EPS for the quarter, missing analysts’ consensus estimates of ($0.21) by ($2.77). The company had revenue of $209.87 million for the quarter. The business’s revenue was up 74.3% on a year-over-year basis. On average, sell-side analysts expect that Cerebras Systems will post -0.52 earnings per share for the current fiscal year.

Cerebras Systems Company Profile

Cerebras Systems is an artificial intelligence computing company that develops specialized hardware and software for training and deploying large AI models. The company’s technology is designed to address the computational demands of generative AI, deep learning and other data-intensive workloads.

Its core products include the Wafer-Scale Engine, a purpose-built AI processor produced on a single silicon wafer, and the CS-3 AI supercomputer, which incorporates that processor into an integrated computing system.