Cerebras Systems (NASDAQ:CBRS) Stock Sees Heavy Call Option Buying

Cerebras Systems Inc. (NASDAQ:CBRS) saw unusually large options trading on Wednesday. Traders acquired 45,379 call options on the company. This is an increase of 14% compared to the typical volume of 39,652 call options.

Wall Street Analyst Weigh In

CBRS has been the topic of several analyst reports. Needham & Company LLC restated a “buy” rating and set a $300.00 price target on shares of Cerebras Systems in a research note on Wednesday, August 19th. Freedom Capital raised shares of Cerebras Systems to a “hold” rating in a research note on Monday, June 29th. Craig Hallum started coverage on shares of Cerebras Systems in a report on Monday, June 8th. They issued a “buy” rating and a $325.00 price objective for the company. Citigroup lowered their target price on shares of Cerebras Systems from $340.00 to $320.00 and set a “buy” rating on the stock in a research report on Thursday, August 13th. Finally, Barclays started coverage on Cerebras Systems in a report on Monday, June 8th. They set an “overweight” rating and a $280.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $299.90.

Insider Activity at Cerebras Systems

In related news, Director Steven Vassallo sold 50,000 shares of the stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $210.30, for a total value of $10,515,000.00. Following the transaction, the director owned 171,977 shares in the company, valued at approximately $36,166,763.10. This represents a 22.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CTO Sean Lie sold 120,000 shares of the firm’s stock in a transaction that occurred on Friday, September 25th. The shares were sold at an average price of $208.97, for a total transaction of $25,076,400.00. Following the transaction, the chief technology officer directly owned 309,569 shares in the company, valued at approximately $64,690,633.93. The trade was a 27.93% decrease in their position. 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 three months, insiders sold 1,864,452 shares of company stock worth $387,680,754.

Institutional Investors Weigh In On Cerebras Systems

Several hedge funds and other institutional investors have recently made changes to their positions in the business. State Street Corp acquired a new position in shares of Cerebras Systems during the 2nd quarter worth about $105,343,000. Silicon Valley Capital Partners acquired a new stake in Cerebras Systems in the 2nd quarter valued at approximately $44,000. Smith Chas P & Associates PA Cpas acquired a new stake in Cerebras Systems in the 2nd quarter valued at approximately $598,000. Dragoneer Investment Group LLC bought a new position in Cerebras Systems in the 2nd quarter worth approximately $88,400,000. Finally, National Pension Service acquired a new position in shares of Cerebras Systems during the second quarter worth approximately $2,210,000.

Key Stories Impacting 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.

Cerebras Systems Stock Down 8.9%

Shares of NASDAQ:CBRS traded down $17.30 during trading on Wednesday, reaching $177.65. The stock had a trading volume of 13,826,933 shares, compared to its average volume of 5,754,798. The firm’s fifty day moving average is $202.93. 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 has a 52 week low of $160.81 and a 52 week high of $386.34. The stock has a market capitalization of $42.20 billion and a price-to-earnings ratio of -2,220.62.

Cerebras Systems (NASDAQ:CBRS) last posted its quarterly earnings data 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 for the quarter. The business’s quarterly revenue was up 74.3% compared to the same quarter last year. On average, analysts forecast that Cerebras Systems will post -0.52 EPS for the current year.

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.