Cerebras Systems (NASDAQ:CBRS) Stock Rating Raised to “Strong-Buy” at Freedom Capital

Cerebras Systems (NASDAQ:CBRS) was upgraded by stock analysts at Freedom Capital from a “hold” rating to a “strong-buy” rating in a note issued to investors on Friday, Zacks reports.

CBRS has been the subject of several other research reports. Weiss Ratings cut Cerebras Systems from a “sell (d)” rating to a “sell (d-)” rating in a research note on Friday, September 25th. Wedbush raised their price objective on shares of Cerebras Systems from $280.00 to $290.00 and gave the company an “outperform” rating in a research report on Thursday, August 13th. Mizuho decreased 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. Craig Hallum started coverage on shares of Cerebras Systems in a research note on Monday, June 8th. They set a “buy” rating and a $325.00 price target on the stock. Finally, Wall Street Zen upgraded shares of Cerebras Systems from a “sell” rating to a “hold” rating in a report on Saturday, August 15th. Two investment analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $299.90.

Cerebras Systems Trading Down 1.8%

CBRS opened at $166.43 on Friday. The company’s fifty day moving average price is $201.27. The company has a current ratio of 5.82, a quick ratio of 5.80 and a debt-to-equity ratio of 0.02. Cerebras Systems has a 1 year low of $160.81 and a 1 year high of $386.34. The firm has a market capitalization of $39.54 billion and a PE ratio of -2,080.38.

Cerebras Systems (NASDAQ:CBRS) last issued its earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share for the quarter, missing the consensus estimate of ($0.21) by ($2.77). The business had revenue of $209.87 million during the quarter. Cerebras Systems’s revenue for the quarter was up 74.3% compared to the same quarter last year. As a group, sell-side analysts forecast that Cerebras Systems will post -0.52 earnings per share for the current fiscal year.

Insider Transactions at Cerebras Systems

In other Cerebras Systems news, 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 completion of the transaction, the director owned 171,977 shares of the company’s stock, valued at $36,166,763.10. The trade was a 22.52% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CTO Sean Lie sold 710,247 shares of the company’s stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $207.86, for a total transaction of $147,631,941.42. Following the sale, the chief technology officer owned 368,926 shares of the company’s stock, valued at $76,684,958.36. This trade represents a 65.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 1,864,452 shares of company stock worth $387,680,754.

Institutional Investors Weigh In On Cerebras Systems

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

Cerebras Systems News Summary

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

• Positive Sentiment: Analyst pushes back on OpenAI concerns: A recent analyst argued that fears of OpenAI moving its AI workloads away from Cerebras are overblown and described competition from NVIDIA as exaggerated. The bullish view helped support the stock after its recent selloff. Cerebras Systems Stock Rises After Analyst Calls OpenAI Fears Overblown
• Positive Sentiment: Long-term AI demand remains a support: Cerebras continues to benefit from an attractive AI-inference market opportunity, while analysts have generally maintained positive ratings and price targets well above the current trading level. However, the company’s most recent quarterly loss significantly exceeded consensus expectations despite strong revenue growth.
• Neutral Sentiment: Valuation remains difficult to assess: Cerebras is valued on expected AI growth, backlog and technology advantages rather than current earnings. Analysts remain broadly constructive, but investors are debating whether its performance advantages will translate into durable market share and profitability. Cerebras Systems This Is Not a Golden Buying Opportunity
• Negative Sentiment: Multiple executives sold shares: COO Dhiraj Mallick sold 396,000 shares worth about $80.8 million, CFO Robert Patrick Jr. Komin sold 32,500 shares worth roughly $6.6 million, and CAO Yagnesh Patel sold 1,320 shares. The transactions were made under pre-arranged Rule 10b5-1 plans, but their scale—particularly the COO’s sale—has increased investor concern and selling pressure. Cerebras Executive Insider Sale
• Negative Sentiment: Competitive and customer risks persist: Reports that OpenAI may be shifting some of its fastest AI models toward NVIDIA hardware have raised concerns about Cerebras’ anchor-customer relationship and future growth. The stock also slipped below its IPO price as insider-sale filings added to the negative narrative. Cerebras Slipped Below Its IPO Price as Insiders Filed to Sell

Cerebras Systems Company Profile

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.