Cerebras Systems (NASDAQ:CBRS) Shares Climb 7.9% – Time to Buy?

Cerebras Systems Inc. (NASDAQ:CBRS) was up 7.9% during trading on Wednesday. The stock traded as high as $103.23 and last traded at $101.08. Approximately 8,970,271 shares were traded during trading, an increase of 13% from the average session volume of 7,961,159 shares. The stock had previously closed at $93.66.

More Cerebras Systems News

Investors following CBRS have been watching these news items:

• Positive Sentiment: Trading data showed unusually high call-option buying, indicating increased bullish positioning among options traders. Schaeffers Research report
• Neutral Sentiment: UBS and Needham lowered their price targets, but both maintained Buy ratings; their revised targets remain above the share price cited in the reports. UBS rating report
• Negative Sentiment: Cerebras has reportedly delayed delivery of AI capacity for OpenAI because of data-center construction delays, which could postpone revenue from that work. A law firm also announced an investor-claims investigation, adding a headline risk. KuCoin report

Analyst Ratings Changes

Several equities analysts recently weighed in on CBRS shares. Wedbush set a $205.00 price target on shares of Cerebras Systems in a research report on Friday. Mizuho lowered their price objective on Cerebras Systems from $300.00 to $240.00 and set an “outperform” rating for the company in a research note on Friday. Weiss Ratings downgraded Cerebras Systems from a “sell (d)” rating to a “sell (d-)” rating in a research note on Wednesday, November 4th. UBS Group dropped their target price on Cerebras Systems from $250.00 to $155.00 and set a “buy” rating on the stock in a report on Friday. Finally, TD Cowen cut their target price on Cerebras Systems from $275.00 to $175.00 and set a “buy” rating on the stock in a research report on Monday, October 19th. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $237.80.

Cerebras Systems Trading Up 12.7%

The firm has a 50-day moving average of $152.65. The company has a debt-to-equity ratio of 0.02, a quick ratio of 5.80 and a current ratio of 5.82. The stock has a market capitalization of $26.18 billion and a PE ratio of -1,364.29.

Cerebras Systems (NASDAQ:CBRS) last released its earnings results on Thursday, November 12th. The company reported $0.13 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.13) by $0.26. The business had revenue of $230.87 million during the quarter. Research analysts anticipate that Cerebras Systems Inc. will post -0.52 earnings per share for the current fiscal year.

Insider Transactions at Cerebras Systems

In other news, COO Dhiraj Mallick sold 396,000 shares of the firm’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 of the company’s stock, valued at $80,799,840. This trade represents a 50.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Steven Vassallo sold 50,000 shares of Cerebras Systems stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $210.30, for a total transaction of $10,515,000.00. Following the completion of the sale, the director directly owned 171,977 shares in the company, valued at $36,166,763.10. This trade represents a 22.52% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 1,874,452 shares of company stock worth $383,719,154.

Institutional Investors Weigh In On Cerebras Systems

A number of hedge funds have recently made changes to their positions in CBRS. Value Aligned Research Advisors LLC bought a new position in shares of Cerebras Systems during the 2nd quarter valued at $241,934,000. Washington University lifted its stake in Cerebras Systems by 175.3% in the third quarter. Washington University now owns 1,517,400 shares of the company’s stock worth $269,566,000 after purchasing an additional 966,314 shares during the last quarter. Wellington Management Group LLP purchased a new stake in Cerebras Systems during the second quarter valued at about $194,853,000. Lunate Capital Ltd purchased a new stake in Cerebras Systems during the third quarter valued at about $115,351,000. Finally, State Street Corp bought a new position in shares of Cerebras Systems during the second quarter valued at about $105,343,000.

About Cerebras Systems

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.