Cerebras Systems (NASDAQ:CBRS) Stock Falls 6.1% – Here’s Why

Cerebras Systems Inc. (NASDAQ:CBRS) fell 6.1% during mid-day trading on Wednesday. The stock traded as low as $90.28 and last traded at $91.85. 10,072,201 shares changed hands during trading, an increase of 28% from the average daily volume of 7,845,789 shares. The stock had previously closed at $97.82.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on CBRS. Rosenblatt Securities reaffirmed a “buy” rating and issued a $300.00 target price on shares of Cerebras Systems in a research report on Wednesday, August 19th. UBS Group dropped their price objective on Cerebras Systems from $330.00 to $250.00 and set a “buy” rating on the stock in a research report on Monday. Mizuho cut 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. Citigroup cut their price objective on Cerebras Systems from $340.00 to $320.00 and set a “buy” rating for the company in a report on Thursday, August 13th. Finally, Wedbush upped their price objective on Cerebras Systems from $280.00 to $290.00 and gave the company an “outperform” rating in a research report on Thursday, August 13th. 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 given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $281.90.

Cerebras Systems Stock Performance

The business has a fifty day moving average of $159.28. The stock has a market capitalization of $21.30 billion and a P/E ratio of -1,121.00. The company has a quick ratio of 5.80, a current ratio of 5.82 and a debt-to-equity ratio of 0.02.

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 the consensus estimate 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. On average, sell-side analysts expect that Cerebras Systems Inc. will post -0.52 EPS for the current fiscal year.

Insider Buying and Selling at Cerebras Systems

In other news, CAO Yagnesh Patel sold 1,320 shares of the company’s stock in a transaction dated Monday, September 28th. The shares were sold at an average price of $204.50, for a total transaction of $269,940.00. Following the sale, the chief accounting officer directly owned 15,356 shares in the company, valued at approximately $3,140,302. This represents a 7.92% decrease in their position. The sale was disclosed in a 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 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 owned 171,977 shares in the company, valued at $36,166,763.10. This trade represents a 22.52% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 1,924,452 shares of company stock worth $394,628,154.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. McGuire Investment Group LLC boosted its stake in shares of Cerebras Systems by 7.6% in the third quarter. McGuire Investment Group LLC now owns 1,420 shares of the company’s stock valued at $252,000 after buying an additional 100 shares in the last quarter. Wealth Enhancement Trust Services Inc. acquired a new position in Cerebras Systems in the third quarter valued at $26,000. Blue Bell Private Wealth Management LLC purchased a new position in Cerebras Systems in the third quarter valued at about $31,000. GK Wealth Management LLC acquired a new stake in Cerebras Systems during the 3rd quarter valued at approximately $31,000. Finally, Silicon Valley Capital Partners acquired a new stake in shares of Cerebras Systems during the 2nd quarter valued at approximately $44,000.

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.