Cerebras Systems’ (NASDAQ:CBRS – Get Free Report) lock-up period is set to expire on Tuesday, November 10th. Cerebras Systems had issued 30,000,000 shares in its public offering on May 14th. The total size of the offering was $5,550,000,000 based on an initial share price of $185.00. After the end of the company’s lock-up period, company insiders and major shareholders will be able to sell their shares of the company.
Analyst Upgrades and Downgrades
Several research firms have recently weighed in on CBRS. Mizuho dropped their target price on shares of Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating for the company in a research report on Thursday, August 13th. Weiss Ratings upgraded shares of Cerebras Systems from a “sell (d-)” rating to a “sell (d)” rating in a research note on Wednesday, October 21st. Citigroup cut 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. Wall Street Zen upgraded Cerebras Systems from a “sell” rating to a “hold” rating in a research note on Saturday, August 15th. Finally, Morgan Stanley increased their target price on Cerebras Systems from $273.00 to $279.00 and gave the stock an “overweight” rating in a report on Thursday, August 13th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $281.90.
Check Out Our Latest Stock Report on CBRS
Cerebras Systems Stock Down 6.1%
NASDAQ:CBRS opened at $91.85 on Thursday. The company’s 50 day moving average is $163.23. Cerebras Systems has a 52 week low of $90.28 and a 52 week high of $386.34. The company has a debt-to-equity ratio of 0.02, a current ratio of 5.82 and a quick ratio of 5.80.
Cerebras Systems (NASDAQ:CBRS – Get Free Report) last announced its quarterly earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.21) by ($2.77). The company had revenue of $209.87 million during the quarter. Cerebras Systems’s quarterly revenue was up 74.3% compared to the same quarter last year. As a group, sell-side analysts anticipate that Cerebras Systems will post -0.52 earnings per share for the current fiscal year.
Insider Transactions at Cerebras Systems
In other Cerebras Systems news, CTO Sean Lie sold 60,000 shares of the firm’s stock in a transaction on Tuesday, October 27th. The stock was sold at an average price of $115.79, for a total value of $6,947,400.00. Following the sale, the chief technology officer directly owned 263,592 shares in the company, valued at approximately $30,521,317.68. This trade represents a 18.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Steven Vassallo sold 50,000 shares of the business’s stock in a transaction 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 transaction, the director directly owned 171,977 shares of the company’s stock, valued at approximately $36,166,763.10. This trade represents a 22.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,924,452 shares of company stock valued at $394,628,154 over the last three months.
Key Stories Impacting Cerebras Systems
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
Institutional Inflows and Outflows
Hedge funds and other institutional investors have recently bought and sold shares of the company. Wealth Enhancement Trust Services Inc. bought a new stake in shares of Cerebras Systems during the third quarter valued at approximately $26,000. GK Wealth Management LLC acquired a new position in shares of Cerebras Systems during the third quarter worth approximately $31,000. Blue Bell Private Wealth Management LLC bought a new position in Cerebras Systems in the 3rd quarter worth approximately $31,000. Torren Management LLC bought a new position in Cerebras Systems in the 3rd quarter worth approximately $39,000. Finally, Silicon Valley Capital Partners bought a new position in Cerebras Systems in the 2nd quarter worth approximately $44,000.
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.
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