Cerebras Systems (NASDAQ:CBRS) Stock Gets Price Target Reduction from UBS Group

Cerebras Systems (NASDAQ:CBRS) had its target price reduced by UBS Group from $330.00 to $250.00 in a research note released on Monday,Benzinga reports. They currently have a buy rating on the stock.

Other research analysts have also issued research reports about the company. Wedbush increased their target price on Cerebras Systems from $280.00 to $290.00 and gave the company an “outperform” rating in a research report on Thursday, August 13th. Needham & Company LLC reissued a “buy” rating and issued a $300.00 price target on shares of Cerebras Systems in a research note on Wednesday, August 19th. TD Cowen cut their price target on shares of Cerebras Systems from $275.00 to $175.00 and set a “buy” rating for the company in a report on Monday, October 19th. Rosenblatt Securities restated a “buy” rating and set a $300.00 price objective on shares of Cerebras Systems in a research report on Wednesday, August 19th. Finally, Weiss Ratings raised shares of Cerebras Systems from a “sell (d-)” rating to a “sell (d)” rating in a report on Wednesday, October 21st. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $281.90.

Cerebras Systems Stock Down 6.1%

NASDAQ CBRS opened at $91.85 on Monday. Cerebras Systems has a twelve month low of $90.28 and a twelve month high of $386.34. 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 business has a 50-day simple moving average of $163.23.

Cerebras Systems (NASDAQ:CBRS) last issued its quarterly earnings data on Wednesday, August 12th. The company reported ($2.98) EPS for the quarter, missing the consensus estimate of ($0.21) by ($2.77). The business had revenue of $209.87 million during the quarter. Cerebras Systems’s revenue for the quarter was up 74.3% compared to the same quarter last year. Analysts predict that Cerebras Systems will post -0.52 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Steven Vassallo sold 50,000 shares of the business’s 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 approximately $36,166,763.10. The trade was a 22.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Eric Vishria sold 68,268 shares of the stock in a transaction on Monday, August 17th. The shares were sold at an average price of $229.77, for a total value of $15,685,938.36. Following the completion of the transaction, the director directly owned 31,383 shares of the company’s stock, valued at approximately $7,210,871.91. This represents a 68.51% 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. Over the last 90 days, insiders have sold 1,924,452 shares of company stock valued at $394,628,154.

Institutional Investors Weigh In On Cerebras Systems

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Value Aligned Research Advisors LLC purchased a new position in shares of Cerebras Systems in the second quarter worth about $241,934,000. Wellington Management Group LLP acquired a new position in Cerebras Systems during the second quarter worth about $194,853,000. Sumitomo Mitsui Trust Group Inc. boosted its position in Cerebras Systems by 59.6% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 490,139 shares of the company’s stock worth $87,073,000 after acquiring an additional 183,035 shares during the last quarter. State Street Corp purchased a new stake in Cerebras Systems during the 2nd quarter valued at about $105,343,000. Finally, Dragoneer Investment Group LLC purchased a new stake in Cerebras Systems during the 2nd quarter valued at about $88,400,000.

Cerebras Systems News Summary

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

• Positive Sentiment: Bullish analyst views: UBS reportedly sees 159% upside, while another Wall Street analyst cited in the coverage maintains a Buy view and projects potential gains of about 240%. These targets offer a counterpoint to 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: Growth case: A Seeking Alpha analysis says Cerebras has secured more than 600MW of capacity and management expects revenue to grow more than threefold in 2027. It also argues that inference work with AMD and AWS could improve throughput and revenue per megawatt. Upcoming Q3 results may help investors assess this outlook. Cerebras: Q3 Could Validate The 2027 Story
• Neutral Sentiment: Investor investigations: Law firms have announced investigations into Cerebras. These notices do not establish wrongdoing, but could add uncertainty and legal risk for investors. CBRS Investor Alert
• Negative Sentiment: Downgrade and selling pressure: Coverage attributes the decline to an analyst downgrade. Shares have fallen to a new 52-week low, while a short report, reported insider selling and rumors that a major customer may have left have added to investor concerns. The customer claims are described as whispers, not confirmed facts. Cerebras Systems Shares Down Following Analyst Downgrade Cerebras Systems Craters Again

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.