Cerebras Systems (NASDAQ:CBRS) Stock Price Down 9.5% – Time to Sell?

Cerebras Systems Inc. (NASDAQ:CBRS)’s share price was down 9.5% on Friday . The stock traded as low as $192.86 and last traded at $199.12. Approximately 5,922,605 shares traded hands during trading, a decline of 18% from the average daily volume of 7,227,088 shares. The stock had previously closed at $220.00.

Trending Headlines about Cerebras Systems

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

• Positive Sentiment: Cerebras announced a major technical partnership with Advanced Micro Devices (AMD) to build a disaggregated AI inference system that pairs AMD’s Helios rack-scale infrastructure with Cerebras’ Wafer-Scale Engine. The deal is focused on ultra-low latency and higher efficiency, which could expand Cerebras’ role in enterprise AI infrastructure. Article Title
• Positive Sentiment: Multiple reports highlight that the AMD-Cerebras collaboration could improve AI inference speed and efficiency by as much as 5x in certain workloads, reinforcing Cerebras’ positioning in the fast-growing, high-margin AI infrastructure market. Article Title
• Positive Sentiment: Cerebras also drew attention for its partnership with CrowdStrike, which aims to improve AI-driven cybersecurity inference speed and broaden Cerebras’ enterprise footprint. Article Title
• Neutral Sentiment: There was also a short-interest update, but it appears to be a data anomaly with reported short interest at 0 shares, so it is unlikely to be driving the stock. Article Title
• Negative Sentiment: Law firms Kaplan Fox and Pomerantz announced investigations into possible securities law violations involving Cerebras, which adds headline risk and may be pressuring shares. Article Title

Analysts Set New Price Targets

Several equities research analysts recently issued reports on CBRS shares. Barclays started coverage on shares of Cerebras Systems in a research note on Monday, June 8th. They issued an “overweight” rating and a $280.00 target price for the company. Mizuho started coverage on Cerebras Systems in a research report on Monday, June 8th. They set an “outperform” rating and a $300.00 price target on the stock. Zacks Research upgraded Cerebras Systems to a “hold” rating in a research note on Tuesday, June 9th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $300.00 price objective on shares of Cerebras Systems in a research report on Wednesday, June 24th. Finally, TD Cowen initiated coverage on Cerebras Systems in a research note on Monday, June 8th. They set a “buy” rating and a $275.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, Cerebras Systems presently has a consensus rating of “Moderate Buy” and an average target price of $299.30.

Cerebras Systems Trading Down 9.5%

The firm’s 50 day moving average price is $219.77.

Cerebras Systems (NASDAQ:CBRS) last announced its quarterly earnings data on Tuesday, June 23rd. The company reported ($0.04) earnings per share for the quarter, beating the consensus estimate of ($0.14) by $0.10. The company had revenue of $193.41 million during the quarter, compared to analyst estimates of $180.70 million.

Insider Activity at Cerebras Systems

In other news, CTO Sean Lie sold 10,033 shares of the firm’s stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $170.07, for a total value of $1,706,312.31. Following the sale, the chief technology officer directly owned 10,033 shares in the company, valued at approximately $1,706,312.31. This trade represents a 50.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Dhiraj Mallick sold 10,000 shares of the stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $206.51, for a total transaction of $2,065,100.00. Following the completion of the transaction, the chief operating officer directly owned 10,000 shares of the company’s stock, valued at approximately $2,065,100. The trade was a 50.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 117,547 shares of company stock valued at $20,676,799.

About Cerebras Systems

Cerebras Systems is a technology company focused on building artificial intelligence infrastructure, including hardware and software designed to accelerate deep learning and large-scale AI workloads. The company is best known for its wafer-scale processor architecture, which is intended to provide high-performance compute for training and inference applications.

In addition to its AI chips, Cerebras offers systems and related software tools that support researchers and enterprises working with machine learning models.