Cerebras Systems (NASDAQ:CBRS) Stock Falls 5.1% After Analyst Downgrade

Cerebras Systems Inc. (NASDAQ:CBRS)’s stock price traded down 5.1% during trading 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 $120.12 and last traded at $120.66. Approximately 11,525,599 shares were traded during trading, an increase of 53% from the average session volume of 7,520,132 shares. The stock had previously closed at $127.21.

Several other equities analysts have also issued reports on CBRS. Citigroup lowered their target price on shares of Cerebras Systems from $340.00 to $320.00 and set a “buy” rating for the company in a report on Thursday, August 13th. Mizuho dropped their price target on Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating on the stock in a research report on Thursday, August 13th. UBS Group upped their price target on Cerebras Systems from $320.00 to $330.00 and gave the stock a “buy” rating in a research note on Thursday, August 13th. Needham & Company LLC restated a “buy” rating and issued a $300.00 price target on shares of Cerebras Systems in a research note on Wednesday, August 19th. Finally, Freedom Capital raised Cerebras Systems from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 2nd. Two research 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 issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $289.90.

Insider Buying and Selling

In related news, CEO Andrew Feldman sold 237,559 shares of the company’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $199.27, for a total value of $47,338,381.93. Following the transaction, the chief executive officer owned 16,853 shares in the company, valued at $3,358,297.31. The trade was a 93.38% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Eric Vishria sold 68,268 shares of the stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $229.77, for a total transaction of $15,685,938.36. Following the sale, the director directly owned 31,383 shares in the company, valued at $7,210,871.91. This trade represents a 68.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,864,452 shares of company stock worth $387,680,754 over the last quarter.

Institutional Investors Weigh In On Cerebras Systems

Institutional investors have recently made changes to their positions in the company. Prime Capital Investment Advisors LLC bought a new position in shares of Cerebras Systems during the third quarter valued at $368,000. ICG Advisors LLC increased its holdings in Cerebras Systems by 179.9% in the 3rd quarter. ICG Advisors LLC now owns 15,000 shares of the company’s stock worth $2,665,000 after buying an additional 9,641 shares in the last quarter. CWA Asset Management Group LLC increased its holdings in Cerebras Systems by 140.3% in the 3rd quarter. CWA Asset Management Group LLC now owns 6,694 shares of the company’s stock worth $1,189,000 after buying an additional 3,908 shares in the last quarter. IFP Advisors Inc raised its position in Cerebras Systems by 354.0% in the 3rd quarter. IFP Advisors Inc now owns 3,464 shares of the company’s stock worth $615,000 after buying an additional 2,701 shares during the last quarter. Finally, Frank Rimerman Advisors LLC raised its position in Cerebras Systems by 3,681.7% in the 3rd quarter. Frank Rimerman Advisors LLC now owns 56,271 shares of the company’s stock worth $9,997,000 after buying an additional 54,783 shares during the last quarter.

Cerebras Systems Stock 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 firm has a market capitalization of $27.90 billion and a price-to-earnings ratio of -1,480.35. The stock has a 50-day moving average price of $187.16.

Cerebras Systems (NASDAQ:CBRS) last announced its quarterly earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.21) by ($2.77). The firm had revenue of $209.87 million for the quarter. The business’s revenue was up 74.3% compared to the same quarter last year. As a group, sell-side analysts anticipate that Cerebras Systems Inc. will post -0.52 EPS for the current fiscal 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.