Cerebras Systems (NASDAQ:CBRS) Stock Falls 7.7% – Here’s Why

Shares of Cerebras Systems Inc. (NASDAQ:CBRS) were down 7.7% on Thursday. The stock traded as low as $107.90 and last traded at $108.94. 10,709,654 shares were traded during mid-day trading, an increase of 41% from the average daily volume of 7,575,882 shares. The stock had previously closed at $117.98.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on CBRS. Needham & Company LLC reaffirmed a “buy” rating and set a $300.00 price target on shares of Cerebras Systems in a report on Wednesday, August 19th. TD Cowen reduced their price objective on Cerebras Systems from $275.00 to $175.00 and set a “buy” rating for the company in a report on Monday. Freedom Capital raised Cerebras Systems from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 2nd. 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 note on Thursday, August 13th. Finally, Morgan Stanley upped their target price on shares of Cerebras Systems from $273.00 to $279.00 and gave the company an “overweight” rating in a research note on Thursday, August 13th. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $289.90.

Cerebras Systems Trading Down 7.7%

The company has a quick ratio of 5.80, a current ratio of 5.82 and a debt-to-equity ratio of 0.02. The stock has a market cap of $25.88 billion and a PE ratio of -1,361.75. The firm has a 50 day simple moving average of $181.84.

Cerebras Systems (NASDAQ:CBRS) last released its quarterly earnings results on Wednesday, August 12th. The company reported ($2.98) EPS for the quarter, missing the consensus estimate 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. Research analysts forecast that Cerebras Systems Inc. will post -0.52 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Robert Patrick Jr. Komin sold 32,500 shares of Cerebras Systems stock in a transaction that occurred on Tuesday, September 29th. The stock was sold at an average price of $203.53, for a total transaction of $6,614,725.00. Following the sale, the chief financial officer owned 30,670 shares of the company’s stock, valued at approximately $6,242,265.10. This trade represents a 51.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Sean Lie sold 120,000 shares of the company’s stock in a transaction that occurred on Friday, September 25th. The stock was sold at an average price of $208.97, for a total value of $25,076,400.00. Following the completion of the transaction, the chief technology officer owned 309,569 shares of the company’s stock, valued at $64,690,633.93. The trade was a 27.93% 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 in the last three months.

Hedge Funds Weigh In On Cerebras Systems

Several institutional investors have recently bought and sold shares of CBRS. Wealth Enhancement Trust Services Inc. bought a new stake in Cerebras Systems in the 3rd quarter valued at $26,000. GK Wealth Management LLC bought a new position in shares of Cerebras Systems during the 3rd quarter valued at about $31,000. Silicon Valley Capital Partners bought a new position in shares of Cerebras Systems during the 2nd quarter valued at about $44,000. Mather Group LLC. purchased a new position in shares of Cerebras Systems during the third quarter valued at about $44,000. Finally, CoreCap Advisors LLC purchased a new position in shares of Cerebras Systems during the third quarter valued at about $52,000.

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.