Cerebras Systems (NASDAQ:CBRS) Shares Down 6.1% – Here’s What Happened

Cerebras Systems Inc. (NASDAQ:CBRS) fell 6.1% during trading on Wednesday. The stock traded as low as $90.28 and last traded at $91.85. Approximately 10,072,201 shares were traded during mid-day trading, an increase of 28% from the average daily volume of 7,845,789 shares. The stock had previously closed at $97.82.

Key Headlines Impacting Cerebras Systems

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

• Positive Sentiment: UBS maintains a Buy rating and sees substantial potential upside, though it cut its price target from $330 to $250. A separate Wall Street analyst cited a possible path to gains of about 240%, reflecting how bullish forecasts contrast with the recent selloff. Cerebras Sinks 11% in a Week to a New 52-Week Low. UBS Still Sees 159% Upside Cerebras Systems Craters Again
• Positive Sentiment: Investors will look to Q3 results for evidence supporting the company’s growth outlook. One analysis cites revenue consensus of $214.7 million, more than 600MW of secured capacity, and management’s expectation of over threefold revenue growth in 2027. Planned inference work with AMD and AWS could also improve throughput and revenue per megawatt, though execution remains key. Cerebras: Q3 Could Validate The 2027 Story
• Negative Sentiment: A report says CBRS shares came under pressure following an analyst downgrade. The stock has also reached a new 52-week low, underscoring the severity of the recent decline. Cerebras Systems Shares Down Following Analyst Downgrade
• Negative Sentiment: Other reported headwinds include a short report, substantial insider selling, and rumors that a major customer may have left. These claims could weigh on sentiment; the customer report is described as a rumor, not a confirmed departure. Cerebras Systems Craters Again
• Negative Sentiment: Several law firms have announced investigations into Cerebras concerning potential securities-law violations. These are investigations, not findings of wrongdoing, but may add uncertainty and reputational risk. Investor Alert: Investigation Into Cerebras Systems

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on CBRS. Citigroup cut their price target on Cerebras Systems from $340.00 to $320.00 and set a “buy” rating on the stock in a research note on Thursday, August 13th. Morgan Stanley boosted their price objective on Cerebras Systems from $273.00 to $279.00 and gave the stock an “overweight” rating in a report on Thursday, August 13th. Wedbush upped their target price on shares of Cerebras Systems from $280.00 to $290.00 and gave the company an “outperform” rating in a research report on Thursday, August 13th. Weiss Ratings raised shares of Cerebras Systems from a “sell (d-)” rating to a “sell (d)” rating in a research note on Wednesday, October 21st. Finally, Wall Street Zen upgraded shares of Cerebras Systems from a “sell” rating to a “hold” rating in a research report on Saturday, August 15th. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has assigned a Hold rating and one has issued 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 $281.90.

Cerebras Systems Price Performance

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 company has a market capitalization of $21.80 billion and a PE ratio of -1,147.25. The business’s 50 day moving average price is $165.07.

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 firm had revenue of $209.87 million during the quarter. Cerebras Systems’s quarterly revenue was up 74.3% compared to the same quarter last year. On average, sell-side analysts expect that Cerebras Systems Inc. will post -0.52 earnings per share for the current fiscal year.

Insider Transactions at Cerebras Systems

In other Cerebras Systems news, CTO Sean Lie sold 710,247 shares of the stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $207.86, for a total value of $147,631,941.42. Following the completion of the sale, the chief technology officer directly owned 368,926 shares in the company, valued at $76,684,958.36. This represents a 65.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Dhiraj Mallick sold 396,000 shares of the firm’s stock in a transaction that occurred 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 sale, the chief operating officer owned 396,000 shares in the company, valued at $80,799,840. This trade represents a 50.00% decrease in their ownership of the stock. 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. In the last quarter, insiders sold 1,924,452 shares of company stock valued at $394,628,154.

Hedge Funds Weigh In On Cerebras Systems

A number of large investors have recently bought and sold shares of CBRS. Vestor Capital LLC raised its holdings in shares of Cerebras Systems by 14,652.9% in the third quarter. Vestor Capital LLC now owns 76,715 shares of the company’s stock valued at $13,628,000 after purchasing an additional 76,195 shares during the last quarter. AlphaCore Capital LLC acquired a new position in Cerebras Systems during the third quarter worth $389,000. Clear Wave Wealth Management LLC bought a new position in Cerebras Systems in the third quarter valued at $218,000. Syntax Research Inc. grew its position in Cerebras Systems by 1,061.0% in the third quarter. Syntax Research Inc. now owns 1,161 shares of the company’s stock valued at $206,000 after purchasing an additional 1,061 shares in the last quarter. Finally, Almanack Investment Partners LLC. bought a new position in Cerebras Systems in the third quarter valued at $323,000.

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.