Cerebras Systems (NASDAQ:CBRS) Trading Down 5.6% – Should You Sell?

Cerebras Systems Inc. (NASDAQ:CBRS)’s share price fell 5.6% on Tuesday . The company traded as low as $174.57 and last traded at $173.85. Approximately 1,017,577 shares were traded during trading, a decline of 86% from the average session volume of 7,125,078 shares. The stock had previously closed at $184.24.

Analyst Ratings Changes

A number of research analysts have commented on CBRS shares. Morgan Stanley upped their price target on Cerebras Systems from $273.00 to $279.00 and gave the company an “overweight” rating in a research report on Thursday, August 13th. Rosenblatt Securities reissued a “buy” rating and set a $300.00 target price on shares of Cerebras Systems in a research note on Wednesday, August 19th. TD Cowen began coverage on Cerebras Systems in a report on Monday, June 8th. They set a “buy” rating and a $275.00 target price for the company. Weiss Ratings initiated coverage on Cerebras Systems in a research note on Thursday, August 13th. They issued a “sell (d)” rating for the company. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $300.00 price target on shares of Cerebras Systems in a report on Wednesday, August 19th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $299.90.

Cerebras Systems Price Performance

The company has a 50-day moving average of $203.51.

Cerebras Systems (NASDAQ:CBRS) last posted its quarterly earnings data 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 company had revenue of $209.87 million during the quarter. The business’s quarterly revenue was up 74.3% compared to the same quarter last year. As a group, equities analysts anticipate that Cerebras Systems Inc. will post -0.52 EPS for the current year.

Insider Transactions at Cerebras Systems

In related news, CTO Sean Lie sold 16,293 shares of the stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $210.01, for a total transaction of $3,421,692.93. Following the sale, the chief technology officer directly owned 368,926 shares of the company’s stock, valued at approximately $77,478,149.26. This represents a 4.23% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Dhiraj Mallick sold 38,889 shares of the stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $222.22, for a total transaction of $8,641,913.58. Following the sale, the chief operating officer directly owned 120,000 shares in the company, valued at $26,666,400. This trade represents a 24.48% decrease in their ownership of the stock. 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 90 days, insiders sold 1,291,278 shares of company stock valued at $265,966,662.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Ratan Capital Management LP purchased a new stake in shares of Cerebras Systems during the second quarter valued at approximately $4,641,000. Value Aligned Research Advisors LLC bought a new stake in shares of Cerebras Systems during the second quarter valued at approximately $241,934,000. Montanova Capital LLC purchased a new position in Cerebras Systems in the 2nd quarter worth approximately $37,990,000. Wellington Management Group LLP bought a new position in Cerebras Systems in the 2nd quarter valued at approximately $194,853,000. Finally, Tiger Pacific Capital LP bought a new position in Cerebras Systems in the 2nd quarter valued at approximately $221,000.

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.