Cerebras Systems (NASDAQ:CBRS) Shares Down 3.1% After Analyst Downgrade

Cerebras Systems Inc. (NASDAQ:CBRS) fell 3.1% during trading on Tuesday after Morgan Stanley lowered their price target on the stock from $279.00 to $178.00. Morgan Stanley currently has an overweight rating on the stock. Cerebras Systems traded as low as $90.72 and last traded at $93.66. Approximately 8,104,138 shares changed hands during trading, an increase of 2% from the average session volume of 7,943,439 shares. The stock had previously closed at $96.70.

A number of other brokerages have also recently issued reports on CBRS. TD Cowen dropped their price objective on Cerebras Systems from $275.00 to $175.00 and set a “buy” rating on the stock in a research note on Monday, October 19th. UBS Group decreased their target price on shares of Cerebras Systems from $330.00 to $250.00 and set a “buy” rating for the company in a research note on Monday, November 2nd. Jefferies Financial Group upgraded shares of Cerebras Systems to an “outperform” rating in a report on Monday, October 5th. Freedom Capital raised shares of Cerebras Systems from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 2nd. Finally, Wall Street Zen upgraded shares of Cerebras Systems from a “sell” rating to a “hold” rating in a research note on Saturday, August 15th. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Cerebras Systems has a consensus rating of “Moderate Buy” and an average target price of $261.80.

Insider Transactions at Cerebras Systems

In other Cerebras Systems news, CFO Robert Patrick Jr. Komin sold 32,500 shares of the company’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 sale, the chief financial officer owned 30,670 shares in the company, valued at $6,242,265.10. This represents a 51.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Dhiraj Mallick sold 396,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $204.04, for a total value of $80,799,840.00. Following the completion of the sale, the chief operating officer directly owned 396,000 shares of the company’s stock, valued at approximately $80,799,840. The trade was a 50.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 1,924,452 shares of company stock valued at $394,628,154.

Key Stories Impacting Cerebras Systems

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

• Positive Sentiment: Bilt selected Cerebras’ AI infrastructure for its Neighborhood OS and Bilt Concierge, services intended for more than eight million members. The partnership offers a customer-validation point and potential commercial opportunity. Bilt selects Cerebras
• Positive Sentiment: Wedbush reportedly still expects a modest earnings beat and raise, maintaining a bullish view ahead of the quarterly report. That outlook could support shares if results or guidance exceed expectations. Wedbush outlook
• Neutral Sentiment: Cerebras’ IPO lockup expired ahead of earnings, making more shares eligible for sale. The added potential supply could increase volatility, though expiration does not mean holders will sell. Cerebras lockup expiration
• Negative Sentiment: Wedbush cut its price target by $100, and Morgan Stanley lowered its target from $279 to $178. Morgan Stanley kept an Overweight rating, but the reductions may weigh on sentiment. Wedbush price-target cut Morgan Stanley rating
• Negative Sentiment: Recent coverage also cited weakness across AI-related stocks, a broader sector headwind that may compound company-specific concerns before earnings. AI stocks slide

Hedge Funds Weigh In On Cerebras Systems

Several institutional investors and hedge funds have recently modified their holdings of the stock. Value Aligned Research Advisors LLC bought a new stake in shares of Cerebras Systems during the 2nd quarter worth about $241,934,000. Washington University raised its holdings in Cerebras Systems by 175.3% in the 3rd quarter. Washington University now owns 1,517,400 shares of the company’s stock valued at $269,566,000 after acquiring an additional 966,314 shares during the period. Wellington Management Group LLP bought a new position in Cerebras Systems in the 2nd quarter valued at about $194,853,000. Lunate Capital Ltd acquired a new stake in Cerebras Systems during the third quarter worth approximately $115,351,000. Finally, State Street Corp acquired a new stake in Cerebras Systems during the second quarter worth approximately $105,343,000.

Cerebras Systems Price Performance

The company has a market cap of $22.25 billion and a PE ratio of -1,170.75. The stock has a 50-day moving average of $157.63. The company has a debt-to-equity ratio of 0.02, a current ratio of 5.82 and a quick ratio of 5.80.

Cerebras Systems (NASDAQ:CBRS) last announced its earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.21) by ($2.77). The firm had revenue of $209.87 million during the quarter. The business’s quarterly revenue was up 74.3% on a year-over-year basis. Research analysts expect that Cerebras Systems Inc. will post -0.52 earnings per share for the current year.

About Cerebras Systems

Cerebras Systems develops computing systems and software designed for artificial intelligence and other compute-intensive workloads. Its products are built around the Wafer-Scale Engine, a large processor designed to support AI model training and inference, and include the CS-3 system and related software. The company also offers cloud-based access to its AI computing infrastructure, giving customers a way to run AI workloads without deploying its systems on site. Its offerings are aimed at organizations developing and operating large AI models, including businesses, research institutions and public-sector customers.