Cerebras Systems (NASDAQ:CBRS) Upgraded at Freedom Capital

Freedom Capital upgraded shares of Cerebras Systems (NASDAQ:CBRS) from a hold rating to a strong-buy rating in a research note issued to investors on Friday,Zacks reports.

Several other analysts have also recently commented on CBRS. Morgan Stanley raised their target price on Cerebras Systems from $273.00 to $279.00 and gave the stock an “overweight” rating in a research report on Thursday, August 13th. UBS Group increased their price objective on Cerebras Systems from $320.00 to $330.00 and gave the stock a “buy” rating in a research note on Thursday, August 13th. Rosenblatt Securities restated a “buy” rating and set a $300.00 price objective on shares of Cerebras Systems in a research report on Wednesday, August 19th. Weiss Ratings cut Cerebras Systems from a “sell (d)” rating to a “sell (d-)” rating in a research note on Friday, September 25th. Finally, TD Cowen started coverage on Cerebras Systems in a report on Monday, June 8th. They issued a “buy” rating and a $275.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $299.90.

Cerebras Systems Stock Performance

Shares of NASDAQ:CBRS opened at $166.43 on Friday. 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 stock has a market cap of $39.54 billion and a P/E ratio of -2,080.38. Cerebras Systems has a 52 week low of $160.81 and a 52 week high of $386.34. The company has a 50 day moving average price of $201.27.

Cerebras Systems (NASDAQ:CBRS) last posted its quarterly earnings data on Wednesday, August 12th. The company reported ($2.98) earnings per share for the quarter, missing the consensus estimate of ($0.21) by ($2.77). The business 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, equities analysts predict that Cerebras Systems will post -0.52 earnings per share for the current year.

Insider Buying and Selling

In related news, CAO Yagnesh Patel sold 1,320 shares of the stock in a transaction that occurred 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 completion of the sale, the chief accounting officer owned 15,356 shares in the company, valued at $3,140,302. This represents a 7.92% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Sean Lie sold 120,000 shares of the firm’s stock in a transaction that occurred on Friday, September 25th. The shares were sold at an average price of $208.97, for a total value of $25,076,400.00. Following the completion of the sale, the chief technology officer directly owned 309,569 shares in the company, valued at $64,690,633.93. This trade represents a 27.93% decrease in their position. 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 sold a total of 1,864,452 shares of company stock valued at $387,680,754 in the last quarter.

Hedge Funds Weigh In On Cerebras Systems

A number of institutional investors and hedge funds have recently bought and sold shares of CBRS. Silverleafe Capital Partners LLC bought a new position in Cerebras Systems during the third quarter worth about $835,000. State Street Corp acquired a new position in shares of Cerebras Systems in the 2nd quarter worth approximately $105,343,000. Silicon Valley Capital Partners acquired a new position in shares of Cerebras Systems in the 2nd quarter worth approximately $44,000. Smith Chas P & Associates PA Cpas bought a new position in shares of Cerebras Systems during the 2nd quarter worth approximately $598,000. Finally, Dragoneer Investment Group LLC acquired a new stake in Cerebras Systems in the 2nd quarter valued at $88,400,000.

Cerebras Systems News Roundup

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

• Positive Sentiment: Analyst pushes back on OpenAI concerns: A recent analyst argued that fears of OpenAI moving its AI workloads away from Cerebras are overblown and described competition from NVIDIA as exaggerated. The bullish view helped support the stock after its recent selloff. Cerebras Systems Stock Rises After Analyst Calls OpenAI Fears Overblown
• Positive Sentiment: Long-term AI demand remains a support: Cerebras continues to benefit from an attractive AI-inference market opportunity, while analysts have generally maintained positive ratings and price targets well above the current trading level. However, the company’s most recent quarterly loss significantly exceeded consensus expectations despite strong revenue growth.
• Neutral Sentiment: Valuation remains difficult to assess: Cerebras is valued on expected AI growth, backlog and technology advantages rather than current earnings. Analysts remain broadly constructive, but investors are debating whether its performance advantages will translate into durable market share and profitability. Cerebras Systems This Is Not a Golden Buying Opportunity
• Negative Sentiment: Multiple executives sold shares: COO Dhiraj Mallick sold 396,000 shares worth about $80.8 million, CFO Robert Patrick Jr. Komin sold 32,500 shares worth roughly $6.6 million, and CAO Yagnesh Patel sold 1,320 shares. The transactions were made under pre-arranged Rule 10b5-1 plans, but their scale—particularly the COO’s sale—has increased investor concern and selling pressure. Cerebras Executive Insider Sale
• Negative Sentiment: Competitive and customer risks persist: Reports that OpenAI may be shifting some of its fastest AI models toward NVIDIA hardware have raised concerns about Cerebras’ anchor-customer relationship and future growth. The stock also slipped below its IPO price as insider-sale filings added to the negative narrative. Cerebras Slipped Below Its IPO Price as Insiders Filed to Sell

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.