Shares of Cerebras Systems Inc. (NASDAQ:CBRS – Get Free Report) were up 10.1% during trading on Tuesday. The company traded as high as $120.50 and last traded at $119.31. Approximately 14,239,073 shares traded hands during mid-day trading, an increase of 86% from the average session volume of 7,641,579 shares. The stock had previously closed at $108.37.
Key Headlines Impacting Cerebras Systems
Here are the key news stories impacting Cerebras Systems this week:
- Positive Sentiment: Cerebras’ planned availability through Oracle Cloud Infrastructure gives customers easier access to its Wafer-Scale Engine technology and could expand usage among AI developers and enterprises. The agreement also improves Cerebras’ competitive position against conventional GPU providers. Cerebras Systems stock jumps on Oracle collaboration
- Neutral Sentiment: FinanceFeeds outlined a wide range of potential outcomes for CBRS, citing a bull-case target of $161.08 and a bear-case target of $50.51, with a midpoint forecast of $112.56. The unusually broad range highlights significant uncertainty and volatility rather than providing a clear near-term catalyst. Cerebras stock prediction
- Neutral Sentiment: CTO Sean Lie sold 60,000 shares worth approximately $6.95 million, reducing his direct holdings by 18.54%. Because the transaction was made under a pre-arranged Rule 10b5-1 plan, it is a less significant bearish signal than an unexpected discretionary sale. Cerebras CTO insider sale
- Negative Sentiment: Culper Research published a short report questioning the expected lifespan of Cerebras chips. The report has pressured the shares by raising concerns about product durability, customer economics and the sustainability of the company’s valuation. Culper Research short report
- Negative Sentiment: Block & Leviton and Johnson Fistel announced investigations into potential securities-law violations following the short-seller report. These are law-firm investigations, not findings of wrongdoing, but they add headline and litigation risk. Block and Leviton CBRS investigation
- Negative Sentiment: A lockup expiration made approximately 19.4 million additional shares eligible for trading, increasing potential supply and selling pressure after the Oracle-related rally. Cerebras share lockup expiration
Analyst Ratings Changes
Several equities analysts have commented on CBRS shares. Needham & Company LLC reiterated a “buy” rating and issued a $300.00 target price on shares of Cerebras Systems in a research report on Wednesday, August 19th. Citigroup cut their target price on Cerebras Systems from $340.00 to $320.00 and set a “buy” rating on the stock in a research report on Thursday, August 13th. Mizuho dropped their price objective on shares of Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating on the stock in a report on Thursday, August 13th. Freedom Capital raised shares of Cerebras Systems from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 2nd. 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 research 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 issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $289.90.
View Our Latest Analysis on CBRS
Cerebras Systems Stock Performance
The company has a current ratio of 5.82, a quick ratio of 5.80 and a debt-to-equity ratio of 0.02. The company has a market cap of $27.09 billion and a P/E ratio of -1,424.15. The firm has a 50 day moving average of $172.84.
Cerebras Systems (NASDAQ:CBRS – Get Free Report) last released its 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 business had revenue of $209.87 million during the quarter. Cerebras Systems’s revenue was up 74.3% compared to the same quarter last year. Equities research analysts expect that Cerebras Systems Inc. will post -0.52 EPS for the current year.
Insider Activity at Cerebras Systems
In other Cerebras Systems news, CAO Yagnesh Patel sold 1,320 shares of the stock in a transaction on Monday, September 28th. The stock was sold at an average price of $204.50, for a total transaction of $269,940.00. Following the sale, the chief accounting officer owned 15,356 shares in the company, valued at $3,140,302. This represents a 7.92% 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, CFO Robert Patrick Jr. Komin sold 32,500 shares of the firm’s stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $203.53, for a total value of $6,614,725.00. Following the completion of the transaction, the chief financial officer owned 30,670 shares of the company’s stock, valued at approximately $6,242,265.10. This represents a 51.45% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,924,452 shares of company stock worth $394,628,154 in the last ninety days.
Institutional Trading of Cerebras Systems
Several institutional investors and hedge funds have recently made changes to their positions in the stock. Frank Rimerman Advisors LLC grew its holdings in shares of Cerebras Systems by 3,681.7% during the 3rd quarter. Frank Rimerman Advisors LLC now owns 56,271 shares of the company’s stock valued at $9,997,000 after purchasing an additional 54,783 shares during the last quarter. ICG Advisors LLC raised its position in Cerebras Systems by 179.9% during the 3rd quarter. ICG Advisors LLC now owns 15,000 shares of the company’s stock valued at $2,665,000 after purchasing an additional 9,641 shares during the last quarter. NFSG Corp increased its position in Cerebras Systems by 1,483.7% during the 3rd quarter. NFSG Corp now owns 8,821 shares of the company’s stock valued at $1,567,000 after purchasing an additional 8,264 shares during the period. Cohen Capital Management Inc. bought a new position in Cerebras Systems in the third quarter worth about $1,444,000. Finally, State Street Corp bought a new position in Cerebras Systems in the second quarter worth $105,343,000.
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.
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