Cerebras Systems (NASDAQ:CBRS) Stock Sees Unusually High Put Option Buying

Cerebras Systems Inc. (NASDAQ:CBRS) saw unusually large options trading on Monday. Traders acquired 58,502 put options on the stock. This represents an increase of approximately 24% compared to the average daily volume of 47,162 put options.

Insider Buying and Selling

In related news, COO Dhiraj Mallick sold 396,000 shares of the business’s stock in a transaction dated 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 sale, the chief operating officer directly owned 396,000 shares in the company, valued at approximately $80,799,840. The trade was a 50.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 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 dated Friday, September 4th. The shares were sold at an average price of $210.30, for a total value of $10,515,000.00. Following the completion of the sale, the director owned 171,977 shares in the company, valued at $36,166,763.10. This represents a 22.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,924,452 shares of company stock worth $394,628,154 in the last quarter.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Value Aligned Research Advisors LLC bought a new position in shares of Cerebras Systems in the second quarter worth $241,934,000. Wellington Management Group LLP bought a new stake in Cerebras Systems during the second quarter valued at $194,853,000. State Street Corp bought a new stake in Cerebras Systems during the second quarter valued at $105,343,000. Dragoneer Investment Group LLC purchased a new position in Cerebras Systems during the second quarter worth about $88,400,000. Finally, Sumitomo Mitsui Trust Group Inc. grew its position in Cerebras Systems by 59.6% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 490,139 shares of the company’s stock worth $87,073,000 after buying an additional 183,035 shares in the last quarter.

Cerebras Systems Price Performance

CBRS stock traded down $12.82 during mid-day trading on Monday, reaching $96.36. 13,013,535 shares of the company traded hands, compared to its average volume of 7,807,036. The company has a fifty day moving average price of $168.82. Cerebras Systems has a 52-week low of $95.03 and a 52-week high of $386.34. The stock has a market capitalization of $22.89 billion and a P/E ratio of -1,204.50. 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 announced its quarterly earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.21) by ($2.77). The firm had revenue of $209.87 million for the quarter. Cerebras Systems’s revenue was up 74.3% compared to the same quarter last year. As a group, analysts forecast that Cerebras Systems will post -0.52 EPS for the current year.

Wall Street Analyst Weigh In

A number of brokerages recently commented on CBRS. Wall Street Zen upgraded shares of Cerebras Systems from a “sell” rating to a “hold” rating in a research note on Saturday, August 15th. Rosenblatt Securities reiterated a “buy” rating and issued a $300.00 price objective on shares of Cerebras Systems in a research note on Wednesday, August 19th. Jefferies Financial Group raised shares of Cerebras Systems to an “outperform” rating in a report on Monday, October 5th. UBS Group increased their target price on Cerebras Systems from $320.00 to $330.00 and gave the stock a “buy” rating in a research report on Thursday, August 13th. Finally, Citigroup cut their price target on Cerebras Systems from $340.00 to $320.00 and set a “buy” 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 assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Cerebras Systems presently has a consensus rating of “Moderate Buy” and a consensus price target of $289.90.

About Cerebras Systems

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.