Cerebras Systems (NASDAQ:CBRS) Sets New 12-Month Low on Analyst Downgrade

Shares of Cerebras Systems Inc. (NASDAQ:CBRS) hit a new 52-week low on Monday after TD Cowen lowered their price target on the stock from $275.00 to $175.00. TD Cowen currently has a buy rating on the stock. Cerebras Systems traded as low as $122.14 and last traded at $121.6380, with a volume of 1,715,629 shares trading hands. The stock had previously closed at $127.21.

CBRS has been the subject of several other research reports. Mizuho cut their price target on Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating for the company in a research note on Thursday, August 13th. Morgan Stanley lifted their price objective on shares of Cerebras Systems from $273.00 to $279.00 and gave the company an “overweight” rating in a research report on Thursday, August 13th. Rosenblatt Securities reiterated a “buy” rating and issued a $300.00 price objective on shares of Cerebras Systems in a research report on Wednesday, August 19th. Needham & Company LLC reissued a “buy” rating and issued a $300.00 price objective on shares of Cerebras Systems in a research note on Wednesday, August 19th. Finally, Freedom Capital upgraded shares of Cerebras Systems from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 2nd. Two 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 presently has a consensus rating of “Moderate Buy” and an average target price of $289.90.

Insider Transactions at Cerebras Systems

In other news, COO Dhiraj Mallick sold 396,000 shares of the 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 completion of the transaction, the chief operating officer directly owned 396,000 shares of the company’s stock, valued at approximately $80,799,840. This represents a 50.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Steven Vassallo sold 50,000 shares of the stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $210.30, for a total value of $10,515,000.00. Following the transaction, the director directly owned 171,977 shares of the company’s stock, valued at approximately $36,166,763.10. This trade represents a 22.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,864,452 shares of company stock valued at $387,680,754 over the last 90 days.

Institutional Inflows and Outflows

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

Cerebras Systems Price Performance

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 company’s 50 day moving average price is $187.16. The company has a market cap of $28.09 billion and a PE ratio of -1,478.00.

Cerebras Systems (NASDAQ:CBRS) last announced its quarterly earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share 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 revenue was up 74.3% on a year-over-year basis. Sell-side analysts predict that Cerebras Systems Inc. will post -0.52 earnings per share for the current year.

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.