Cerebras Systems (NASDAQ:CBRS) Shares Down 9.7% – Here’s Why

Cerebras Systems Inc. (NASDAQ:CBRS)’s share price fell 9.7% on Wednesday . The stock traded as low as $182.50 and last traded at $184.01. Approximately 4,575,905 shares traded hands during mid-day trading, a decline of 38% from the average session volume of 7,381,810 shares. The stock had previously closed at $203.81.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on CBRS shares. Morgan Stanley raised their price objective on shares of Cerebras Systems from $250.00 to $273.00 and gave the company an “overweight” rating in a research report on Wednesday, June 24th. Wedbush increased their price objective on Cerebras Systems from $270.00 to $280.00 and gave the company an “outperform” rating in a report on Wednesday, June 24th. Citigroup started coverage on shares of Cerebras Systems in a research report on Monday, June 8th. They issued a “buy” rating and a $340.00 price target on the stock. Freedom Capital upgraded Cerebras Systems to a “hold” rating in a research note on Monday, June 29th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $300.00 target price on shares of Cerebras Systems in a research note on Wednesday, June 24th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $299.30.

Cerebras Systems Stock Performance

The business has a 50-day moving average price of $224.02.

Cerebras Systems (NASDAQ:CBRS) last released its quarterly earnings data on Tuesday, June 23rd. The company reported ($0.04) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.14) by $0.10. The company had revenue of $193.41 million for the quarter, compared to analyst estimates of $180.70 million.

Insider Activity

In other news, CEO Andrew D. Feldman sold 17,990 shares of the firm’s stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $173.06, for a total transaction of $3,113,349.40. Following the completion of the sale, the chief executive officer owned 17,990 shares of the company’s stock, valued at approximately $3,113,349.40. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Sean Lie sold 10,033 shares of Cerebras Systems stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $170.07, for a total value of $1,706,312.31. Following the completion of the transaction, the chief technology officer owned 10,033 shares of the company’s stock, valued at approximately $1,706,312.31. The trade was a 50.00% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 117,547 shares of company stock worth $20,676,799.

About Cerebras Systems

Cerebras Systems is a technology company focused on building artificial intelligence infrastructure, including hardware and software designed to accelerate deep learning and large-scale AI workloads. The company is best known for its wafer-scale processor architecture, which is intended to provide high-performance compute for training and inference applications.

In addition to its AI chips, Cerebras offers systems and related software tools that support researchers and enterprises working with machine learning models.