Cerebras Systems (NASDAQ:CBRS) Stock Jumps 1.7% – Time to Buy?

Cerebras Systems Inc. (NASDAQ:CBRS)’s stock price shot up 1.7% during mid-day trading on Friday. The stock traded as high as $114.65 and last traded at $110.82. 7,564,544 shares traded hands during mid-day trading, a decline of 0% from the average daily volume of 7,573,979 shares. The stock had previously closed at $108.94.

Key Stories Impacting Cerebras Systems

Here are the key news stories impacting Cerebras Systems this week:

• Positive Sentiment: A bullish Seeking Alpha analysis argues that the selloff has created an attractive entry point. Cerebras reported 103% year-over-year growth in second-quarter core revenue, $25.4 billion in remaining performance obligations and more than $8.6 billion in cash. Management expects 2027 core revenue to more than triple, while AMD integration could potentially increase throughput by approximately fivefold. Cerebras: I Waited For This Entry Point
• Positive Sentiment: Another analysis says Wall Street analysts continue to raise their price targets despite Cerebras Systems having fallen more than 60% since its initial public offering, implying significant potential upside if the company meets its growth forecasts. Cerebras Systems Analyst Price Target Outlook
• Neutral Sentiment: A broader AI-chip feature highlights Nvidia and Broadcom rather than Cerebras, underscoring strong industry demand but offering no direct new catalyst for CBRS. 3 Magnificent AI Chip Stocks That Could Help Set You Up for Life
• Neutral Sentiment: Market-data coverage for Cerebras Systems provided financial summary information without identifying a new company-specific development. Cerebras Systems Financial Summary
• Negative Sentiment: Zacks said Applied Optoelectronics currently has an edge over Cerebras in the AI-infrastructure race because of stronger optical demand, capacity expansion and a better earnings outlook. AAOI vs. CBRS
• Negative Sentiment: TD Cowen trimmed its price target, while a separate report cited an analyst downgrade. These actions add pressure after Cerebras missed the latest quarterly EPS consensus by a wide margin, despite 74.3% year-over-year revenue growth. Cerebras Stock Gets Price Target Trim Cerebras Stock Price Down on Analyst Downgrade

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on CBRS shares. Wedbush boosted their price objective on Cerebras Systems from $280.00 to $290.00 and gave the stock an “outperform” rating in a research report on Thursday, August 13th. TD Cowen lowered their target price on Cerebras Systems from $275.00 to $175.00 and set a “buy” rating on the stock in a report on Monday, October 19th. Mizuho dropped their price target on Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating on the stock in a research report on Thursday, August 13th. Wall Street Zen upgraded Cerebras Systems from a “sell” rating to a “hold” rating in a report on Saturday, August 15th. Finally, Needham & Company LLC reissued a “buy” rating and issued a $300.00 price objective on shares of Cerebras Systems in a research report on Wednesday, August 19th. Two 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 given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $289.90.

Cerebras Systems Trading Up 1.7%

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 capitalization of $26.33 billion and a PE ratio of -1,385.25. The stock’s fifty day simple moving average is $179.68.

Cerebras Systems (NASDAQ:CBRS) last posted its quarterly earnings data 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 firm had revenue of $209.87 million for the quarter. The company’s quarterly revenue was up 74.3% on a year-over-year basis. On average, equities research analysts anticipate that Cerebras Systems Inc. will post -0.52 earnings per share for the current year.

Insider Buying and Selling at Cerebras Systems

In other Cerebras Systems news, CTO Sean Lie sold 120,000 shares of the company’s stock in a transaction that occurred on Friday, September 25th. The stock was sold at an average price of $208.97, for a total value of $25,076,400.00. Following the completion of the transaction, the chief technology officer owned 309,569 shares of the company’s stock, valued at $64,690,633.93. This represents a 27.93% decrease in their position. 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 that occurred on 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 sale, the chief financial officer owned 30,670 shares of the company’s stock, valued at $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 1,864,452 shares of company stock valued at $387,680,754 over the last quarter.

Institutional Trading of Cerebras Systems

Institutional investors and hedge funds have recently modified their holdings of the company. Value Aligned Research Advisors LLC acquired a new position in shares of Cerebras Systems in the second quarter valued at $241,934,000. Wellington Management Group LLP acquired a new stake in Cerebras Systems during the second quarter worth $194,853,000. State Street Corp bought a new stake in Cerebras Systems in the 2nd quarter valued at $105,343,000. Dragoneer Investment Group LLC bought a new stake in Cerebras Systems in the 2nd quarter valued at $88,400,000. Finally, Montanova Capital LLC bought a new stake in Cerebras Systems in the 2nd quarter valued at $37,990,000.

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.