Morgan Stanley Issues Pessimistic Forecast for Cerebras Systems (NASDAQ:CBRS) Stock Price

Cerebras Systems (NASDAQ:CBRS) had its target price cut by equities research analysts at Morgan Stanley from $279.00 to $178.00 in a note issued to investors on Monday, Benzinga reports. The brokerage currently has an “overweight” rating on the stock. Morgan Stanley‘s target price suggests a potential upside of 88.61% from the company’s previous close.

Several other equities analysts have also commented on CBRS. Wedbush cut their price target on Cerebras Systems from $290.00 to $190.00 and set an “outperform” rating on the stock in a research note on Monday. Jefferies Financial Group raised Cerebras Systems to an “outperform” rating in a research report on Monday, October 5th. Needham & Company LLC reiterated a “buy” rating and issued a $300.00 target price on shares of Cerebras Systems in a report on Wednesday, August 19th. UBS Group lowered their price target on shares of Cerebras Systems from $330.00 to $250.00 and set a “buy” rating on the stock in a report on Monday, November 2nd. Finally, Rosenblatt Securities reaffirmed a “buy” rating and issued a $300.00 price objective on shares of Cerebras Systems in a research report on Wednesday, August 19th. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Cerebras Systems currently has an average rating of “Moderate Buy” and an average target price of $261.80.

Cerebras Systems Stock Performance

CBRS stock traded up $4.70 during midday trading on Monday, reaching $94.38. The company’s stock had a trading volume of 4,066,057 shares, compared to its average volume of 7,913,480. The company has a quick ratio of 5.80, a current ratio of 5.82 and a debt-to-equity ratio of 0.02. The company’s fifty day moving average price is $159.28. Cerebras Systems has a 1 year low of $77.84 and a 1 year high of $386.34. The stock has a market cap of $22.42 billion and a price-to-earnings ratio of -1,178.10.

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

Insider Buying and Selling

In other news, CFO Robert Patrick Jr. Komin sold 32,500 shares of the company’s stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $203.53, for a total transaction of $6,614,725.00. Following the transaction, the chief financial officer owned 30,670 shares in the company, valued at $6,242,265.10. This represents a 51.45% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Dhiraj Mallick sold 396,000 shares of the company’s stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $204.04, for a total transaction of $80,799,840.00. Following the transaction, the chief operating officer owned 396,000 shares in the company, valued at approximately $80,799,840. This trade represents a 50.00% 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 valued at $394,628,154 in the last 90 days.

Hedge Funds Weigh In On Cerebras Systems

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Frank Rimerman Advisors LLC grew its position in Cerebras Systems by 3,681.7% during the third quarter. Frank Rimerman Advisors LLC now owns 56,271 shares of the company’s stock valued at $9,997,000 after buying an additional 54,783 shares during the period. ICG Advisors LLC boosted its stake in shares of Cerebras Systems by 179.9% during the 3rd quarter. ICG Advisors LLC now owns 15,000 shares of the company’s stock worth $2,665,000 after acquiring an additional 9,641 shares in the last quarter. NFSG Corp grew its position in shares of 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 acquiring an additional 8,264 shares during the period. Cohen Capital Management Inc. acquired a new stake in shares of Cerebras Systems during the 3rd quarter valued at about $1,444,000. Finally, State Street Corp purchased a new position in shares of Cerebras Systems in the 2nd quarter valued at about $105,343,000.

Cerebras Systems Company Profile

Cerebras Systems develops computing systems and software designed for artificial intelligence and other compute-intensive workloads. Its products are built around the Wafer-Scale Engine, a large processor designed to support AI model training and inference, and include the CS-3 system and related software.

The company also offers cloud-based access to its AI computing infrastructure, giving customers a way to run AI workloads without deploying its systems on site. Its offerings are aimed at organizations developing and operating large AI models, including businesses, research institutions and public-sector customers.

Founded in 2015, Cerebras is headquartered in Sunnyvale, California.