Key Points
- Insider sale: Cerebras Chief Accounting Officer Yagnesh Patel sold 1,320 shares for approximately $269,940 under a pre-arranged Rule 10b5-1 plan, reducing his holdings by 7.92% to 15,356 shares. He also sold 4,574 shares in August.
- Mixed financial performance: Cerebras reported quarterly revenue of $209.87 million, up 74.3% year over year, but posted a loss of $2.98 per share, significantly missing the consensus estimate of a $0.21 loss.
- Positive analyst outlook faces risks: Analysts maintain a consensus “Moderate Buy” rating with an average price target of $299.90, while investor sentiment is challenged by substantial insider selling, a 19.4 million-share unlock, and concerns about competition from NVIDIA.
Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report) CAO Yagnesh Patel sold 1,320 shares of the stock in a transaction that occurred on Monday, September 28th. The stock was sold at an average price of $204.50, for a total transaction of $269,940.00. Following the completion of the transaction, the chief accounting officer owned 15,356 shares in the company, valued at $3,140,302. The trade was a 7.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Yagnesh Patel also recently made the following trade(s):
- On Tuesday, August 18th, Yagnesh Patel sold 4,574 shares of Cerebras Systems stock. The stock was sold at an average price of $222.22, for a total transaction of $1,016,434.28.
Cerebras Systems Price Performance
Shares of CBRS stock opened at $177.65 on Thursday. The company has a debt-to-equity ratio of 0.02, a quick ratio of 5.80 and a current ratio of 5.82. The company has a market cap of $42.20 billion and a P/E ratio of -2,220.62. Cerebras Systems Inc. has a 1 year low of $160.81 and a 1 year high of $386.34. The company's fifty day simple moving average is $202.93.
Cerebras Systems (NASDAQ:CBRS - Get Free Report) last announced its earnings results on Wednesday, August 12th. The company reported ($2.98) EPS 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 firm's quarterly revenue was up 74.3% compared to the same quarter last year. Equities research analysts expect that Cerebras Systems Inc. will post -0.52 EPS for the current year.
Trending Headlines about Cerebras Systems
Here are the key news stories impacting Cerebras Systems this week:
- Positive Sentiment: New customer and partner activity: General Compute selected Cerebras to provide ultra-fast inference for agentic coding, while Gimlet Labs reportedly partnered with the company. These developments could support future demand for Cerebras’ AI systems. General Compute Selects Cerebras to Bring Ultra-Fast Inference to Agentic Coding Cerebras Systems Stock Rises on Gimlet Labs Partnership
- Positive Sentiment: Strong AI backlog: A reported $25.4 billion backlog, expanding data-center capacity and improving margins remain bullish arguments for Cerebras as it competes with NVIDIA and AMD. Unusually high call-option activity also indicates speculative bullish interest. CBRS’ Backlog Rides on Strong AI Demand
- Neutral Sentiment: Analyst and valuation debate: Analysts remain generally constructive, with a reported consensus “Moderate Buy” rating and price target near $300, but commentary questions whether benchmark advantages will translate into durable earnings and market share.
- Negative Sentiment: Share unlock increases supply: Approximately 19.4 million shares became eligible to enter the market, creating near-term dilution and selling pressure. Reports also questioned whether OpenAI’s latest GPT-6.1 model is running on Cerebras hardware. Cerebras Stock Falls as 19.4 Million-Share Unlock Hits
- Negative Sentiment: Competitive concerns: Reports that OpenAI may be shifting toward NVIDIA chips intensified fears that Cerebras could lose or fail to expand a major AI customer relationship. Cerebras Stock Plunges on OpenAI-NVIDIA Partnership Reports
- Negative Sentiment: Heavy insider selling: The COO sold $80.8 million of shares, the CFO sold $6.6 million, the CTO sold $25.1 million, and the chief accounting officer sold about $270,000. All were conducted under pre-arranged Rule 10b5-1 plans, but the scale of selling may weigh on sentiment.
Hedge Funds Weigh In On Cerebras Systems
A number of hedge funds have recently made changes to their positions in CBRS. Value Aligned Research Advisors LLC purchased a new stake in shares of Cerebras Systems during the second quarter worth about $241,934,000. Wellington Management Group LLP purchased a new position in Cerebras Systems in the 2nd quarter worth approximately $194,853,000. State Street Corp bought a new position in Cerebras Systems in the 2nd quarter worth approximately $105,343,000. Dragoneer Investment Group LLC bought a new position in Cerebras Systems in the 2nd quarter worth approximately $88,400,000. Finally, Montanova Capital LLC purchased a new stake in Cerebras Systems during the 2nd quarter valued at approximately $37,990,000.
Analyst Upgrades and Downgrades
A number of research analysts recently issued reports on CBRS shares. Citigroup cut their price objective on Cerebras Systems from $340.00 to $320.00 and set a "buy" rating for the company in a research note on Thursday, August 13th. Rosenblatt Securities restated a "buy" rating and set a $300.00 target price on shares of Cerebras Systems in a research note on Wednesday, August 19th. Barclays initiated coverage on shares of Cerebras Systems in a report on Monday, June 8th. They set an "overweight" rating and a $280.00 price target on the stock. UBS Group increased their price objective on shares of Cerebras Systems from $320.00 to $330.00 and gave the stock a "buy" rating in a research note on Thursday, August 13th. Finally, Morgan Stanley raised their price objective on shares of Cerebras Systems from $273.00 to $279.00 and gave the company an "overweight" rating in a research report on Thursday, August 13th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $299.90.
Check Out Our Latest Stock Analysis on CBRS
Cerebras Systems Company Profile
(
Get Free Report)
Cerebras Systems is an artificial intelligence computing company that develops specialized hardware and software for training and deploying large AI models. The company's technology is designed to address the computational demands of generative AI, deep learning and other data-intensive workloads.
Its core products include the Wafer-Scale Engine, a purpose-built AI processor produced on a single silicon wafer, and the CS-3 AI supercomputer, which incorporates that processor into an integrated computing system.
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