Cerebras Systems (NASDAQ:CBRS) Stock Price Up 9.8% – Here’s Why

Cerebras Systems Inc. (NASDAQ:CBRS) traded up 9.8% during mid-day trading on Friday. The company traded as high as $90.29 and last traded at $89.68. Approximately 9,906,546 shares changed hands during mid-day trading, an increase of 25% from the average daily volume of 7,935,029 shares. The stock had previously closed at $81.71.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on CBRS shares. Rosenblatt Securities reaffirmed a “buy” rating and set a $300.00 target price on shares of Cerebras Systems in a report on Wednesday, August 19th. TD Cowen reduced their price target on Cerebras Systems from $275.00 to $175.00 and set a “buy” rating on the stock in a research report on Monday, October 19th. Morgan Stanley raised their price objective on Cerebras Systems from $273.00 to $279.00 and gave the stock an “overweight” rating in a research note on Thursday, August 13th. Citigroup lowered their price objective 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. Finally, Needham & Company LLC reiterated a “buy” rating and set a $300.00 target price on shares of Cerebras Systems in a research report on Wednesday, August 19th. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Cerebras Systems has a consensus rating of “Moderate Buy” and a consensus target price of $281.90.

Cerebras Systems Trading Up 9.8%

The company has a 50-day moving average of $161.22. The stock has a market cap of $21.30 billion and a price-to-earnings ratio of -1,121.00. The company has a debt-to-equity ratio of 0.02, a quick ratio of 5.80 and a current ratio of 5.82.

Cerebras Systems (NASDAQ:CBRS) last issued its 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 business had revenue of $209.87 million during the quarter. The firm’s revenue for the quarter was up 74.3% compared to the same quarter last year. Equities research analysts forecast that Cerebras Systems Inc. will post -0.52 EPS for the current year.

Insiders Place Their Bets

In other Cerebras Systems news, COO Dhiraj Mallick sold 396,000 shares of Cerebras Systems stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $204.04, for a total value of $80,799,840.00. Following the transaction, the chief operating officer owned 396,000 shares in the company, valued at $80,799,840. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Steven Vassallo sold 50,000 shares of Cerebras Systems stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $210.30, for a total transaction of $10,515,000.00. Following the sale, the director directly owned 171,977 shares in the company, valued at $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 sold a total of 1,924,452 shares of company stock valued at $394,628,154 over the last ninety days.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Wealth Enhancement Trust Services Inc. bought a new stake in shares of Cerebras Systems during the 3rd quarter valued at about $26,000. GK Wealth Management LLC acquired a new position in Cerebras Systems in the third quarter valued at approximately $31,000. Blue Bell Private Wealth Management LLC acquired a new position in Cerebras Systems in the third quarter valued at approximately $31,000. Torren Management LLC acquired a new position in Cerebras Systems in the third quarter valued at approximately $39,000. Finally, Silicon Valley Capital Partners bought a new position in shares of Cerebras Systems during the 2nd quarter worth approximately $44,000.

Cerebras Systems Company Profile

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.