Cerebras Systems (NASDAQ:CBRS) Issues Earnings Results

Cerebras Systems (NASDAQ:CBRS) issued its quarterly earnings results on Thursday. The company reported $0.13 EPS for the quarter, topping the consensus estimate of ($0.13) by $0.26, Zacks reports. The business had revenue of $230.87 million during the quarter.

Cerebras Systems Trading Down 3.3%

CBRS traded down $3.33 on Thursday, hitting $97.75. 16,467,813 shares of the stock traded hands, compared to its average volume of 8,024,363. The business has a fifty day moving average of $154.39. 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 has a market cap of $23.22 billion and a price-to-earnings ratio of -1,221.88. Cerebras Systems has a 52 week low of $77.84 and a 52 week high of $386.34.

Key Headlines Impacting Cerebras Systems

Here are a few of the latest headlines about CBRS:

• Positive Sentiment: Third-quarter revenue reached a record: the release reported $210.8 million in GAAP revenue and $230.9 million in Core revenue; cloud revenue grew sharply year over year. Cerebras also announced commercial wins with two new hyperscalers and said 700 megawatts of data-center capacity is under contract. Cerebras third-quarter results and outlook
• Neutral Sentiment: The company reported quarterly EPS of $0.13 and revenue of $230.87 million. The provided reports do not state whether EPS exceeded expectations. Cerebras earnings information
• Negative Sentiment: Pomerantz LLP said it is investigating potential claims on behalf of Cerebras investors. The announcement may weigh on sentiment, though it does not establish wrongdoing or provide details of any claims. Investor investigation announcement

Analysts Set New Price Targets

CBRS has been the subject of several research reports. TD Cowen reduced their price objective on Cerebras Systems from $275.00 to $175.00 and set a “buy” rating for the company in a research report on Monday, October 19th. Needham & Company LLC reaffirmed a “buy” rating and set a $300.00 target price on shares of Cerebras Systems in a research report on Wednesday, August 19th. Rosenblatt Securities reiterated a “buy” rating and set a $300.00 target price on shares of Cerebras Systems in a research note on Wednesday, August 19th. Citigroup cut their target price on shares of Cerebras Systems from $340.00 to $320.00 and set a “buy” rating for the company in a research note on Thursday, August 13th. Finally, Mizuho reduced their price target on shares of Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating for the company in a report on Thursday, August 13th. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $261.80.

Insider Buying and Selling

In other Cerebras Systems news, COO Dhiraj Mallick sold 396,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 29th. The stock was sold at an average price of $204.04, for a total value of $80,799,840.00. Following the completion of the sale, 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Steven Vassallo sold 50,000 shares of Cerebras Systems stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $210.30, for a total value of $10,515,000.00. Following the sale, the director directly owned 171,977 shares in the company, valued at $36,166,763.10. The trade was a 22.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 1,924,452 shares of company stock worth $394,628,154.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of CBRS. AlphaGrep UK Ltd acquired a new position in shares of Cerebras Systems in the 3rd quarter valued at $435,000. Benjamin Edwards Inc. bought a new position in shares of Cerebras Systems during the 3rd quarter worth about $694,000. BNP Paribas bought a new position in shares of Cerebras Systems during the 3rd quarter worth about $244,000. State Street Corp lifted its holdings in shares of Cerebras Systems by 15.2% during the 3rd quarter. State Street Corp now owns 549,086 shares of the company’s stock worth $97,545,000 after acquiring an additional 72,423 shares during the period. Finally, Westpac Banking Corp boosted its position in shares of Cerebras Systems by 113.5% during the 3rd quarter. Westpac Banking Corp now owns 8,826 shares of the company’s stock valued at $1,568,000 after acquiring an additional 4,693 shares in the last quarter.

About Cerebras Systems

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.