Cerebras Systems (NASDAQ:CBRS) Stock Falls 3.1% Following Analyst Downgrade

Cerebras Systems Inc. (NASDAQ:CBRS) shares fell 3.1% on Tuesday after Morgan Stanley lowered their price target on the stock from $279.00 to $178.00. Morgan Stanley currently has an overweight rating on the stock. Cerebras Systems traded as low as $90.72 and last traded at $93.66. Approximately 8,104,138 shares changed hands during trading, an increase of 2% from the average session volume of 7,943,439 shares. The stock had previously closed at $96.70.

Other equities analysts also recently issued reports about the stock. Jefferies Financial Group upgraded shares of Cerebras Systems to an “outperform” rating in a research note on Monday, October 5th. Freedom Capital upgraded shares of Cerebras Systems from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 2nd. Wedbush cut their price objective on shares of Cerebras Systems from $290.00 to $190.00 and set an “outperform” rating for the company in a report on Monday. Wall Street Zen upgraded shares of Cerebras Systems from a “sell” rating to a “hold” rating in a research report on Saturday, August 15th. Finally, Citigroup lowered their target price on shares of Cerebras Systems from $340.00 to $320.00 and set a “buy” rating on the stock in a report on Thursday, August 13th. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $261.80.

Insider Transactions at Cerebras Systems

In other news, COO Dhiraj Mallick sold 396,000 shares of the company’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 directly owned 396,000 shares in the company, valued at approximately $80,799,840. This represents a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Feldman sold 237,559 shares of the stock in a transaction on 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 sale, the chief executive officer directly owned 16,853 shares in the company, valued at approximately $3,358,297.31. This trade represents a 93.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 1,924,452 shares of company stock worth $394,628,154.

Key Stories Impacting Cerebras Systems

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

• Positive Sentiment: Bilt selected Cerebras’ AI infrastructure for its Neighborhood OS and Bilt Concierge, services intended for more than eight million members. The partnership offers a customer-validation point and potential commercial opportunity. Bilt selects Cerebras
• Positive Sentiment: Wedbush reportedly still expects a modest earnings beat and raise, maintaining a bullish view ahead of the quarterly report. That outlook could support shares if results or guidance exceed expectations. Wedbush outlook
• Neutral Sentiment: Cerebras’ IPO lockup expired ahead of earnings, making more shares eligible for sale. The added potential supply could increase volatility, though expiration does not mean holders will sell. Cerebras lockup expiration
• Negative Sentiment: Wedbush cut its price target by $100, and Morgan Stanley lowered its target from $279 to $178. Morgan Stanley kept an Overweight rating, but the reductions may weigh on sentiment. Wedbush price-target cut Morgan Stanley rating
• Negative Sentiment: Recent coverage also cited weakness across AI-related stocks, a broader sector headwind that may compound company-specific concerns before earnings. AI stocks slide

Hedge Funds Weigh In On Cerebras Systems

Hedge funds have recently bought and sold shares of the company. Z3 Capital Partners LLC acquired a new stake in shares of Cerebras Systems during the 3rd quarter worth approximately $1,190,000. Voya Investment Management LLC raised its position in Cerebras Systems by 177.1% during the third quarter. Voya Investment Management LLC now owns 123,858 shares of the company’s stock valued at $22,003,000 after purchasing an additional 79,158 shares in the last quarter. Public Sector Pension Investment Board acquired a new position in Cerebras Systems during the third quarter valued at approximately $11,192,000. Global Retirement Partners LLC raised its position in Cerebras Systems by 855.6% during the third quarter. Global Retirement Partners LLC now owns 602 shares of the company’s stock valued at $107,000 after purchasing an additional 539 shares in the last quarter. Finally, Cibc World Market Inc. lifted its stake in Cerebras Systems by 129.3% during the third quarter. Cibc World Market Inc. now owns 7,221 shares of the company’s stock worth $1,283,000 after purchasing an additional 4,072 shares during the last quarter.

Cerebras Systems Stock Down 3.1%

The business has a 50 day simple moving average of $157.63. The firm has a market cap of $22.25 billion and a PE ratio of -1,170.75. The company has a debt-to-equity ratio of 0.02, a current ratio of 5.82 and a quick ratio of 5.80.

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

Cerebras Systems Company Profile

Cerebras Systems develops computing systems and software designed for artificial intelligence and other compute-intensive workloads. Its products are built around the Wafer-Scale Engine, a large processor designed to support AI model training and inference, and include the CS-3 system and related software. The company also offers cloud-based access to its AI computing infrastructure, giving customers a way to run AI workloads without deploying its systems on site. Its offerings are aimed at organizations developing and operating large AI models, including businesses, research institutions and public-sector customers.