Cerenceinc Stock Buy Hold or Sell Recommendation
| CRNC Stock | USD 10.05 0.29 2.97% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding CerenceInc is 'Not Rated'. Macroaxis provides CerenceInc buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CRNC positions. The advice algorithm takes into account all of CerenceInc's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting CerenceInc's buy or sell advice are summarized below:
Real Value 0.0 | Target Price 31.5 | Hype Value 0.0 | Market Value 10.05 | Naive Value 8.5 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell CerenceInc given historical horizon and risk tolerance towards CerenceInc. When Macroaxis issues a 'buy' or 'sell' recommendation for CerenceInc, the advice is generated through an automated system that utilizes algorithms and statistical models.
CerenceInc |
Execute CerenceInc Buy or Sell Advice
The CerenceInc recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on CerenceInc. Macroaxis does not own or have any residual interests in CerenceInc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute CerenceInc's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Out of control | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Ignores market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
CerenceInc Trading Alerts and Improvement Suggestions
| CerenceInc generated a negative expected return over the last 90 days | |
| CerenceInc has high historical volatility and very poor performance | |
| The company reported the previous year's revenue of 294.48 M. Net Loss for the year was (56.25 M) with profit before overhead, payroll, taxes, and interest of 233.71 M. | |
| Over 96.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from gurufocus.com: Insider Sell CEO Stefan Ortmanns Sells 10,762 Shares of Cerence Inc |
CerenceInc Returns Distribution Density
The distribution of CerenceInc's historical returns is an attempt to chart the uncertainty of CerenceInc's future price movements. The chart of the probability distribution of CerenceInc daily returns describes the distribution of returns around its average expected value. We use CerenceInc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of CerenceInc returns is essential to provide solid investment advice for CerenceInc.
| Mean Return | -0.97 | Value At Risk | -7.1 | Potential Upside | 4.11 | Standard Deviation | 3.69 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of CerenceInc historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
CerenceInc Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as CerenceInc is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading CerenceInc backward and forwards among themselves. CerenceInc's institutional investor refers to the entity that pools money to purchase CerenceInc's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Aristotle Capital Boston, Llc | 2023-12-31 | 585.5 K | Nuveen Asset Management, Llc | 2023-12-31 | 579 K | Goldman Sachs Group Inc | 2023-12-31 | 562.2 K | Great West Life Assurance Co | 2023-12-31 | 559.1 K | Charles Schwab Investment Management Inc | 2023-12-31 | 515.3 K | First Trust Advisors L.p. | 2023-12-31 | 471.6 K | Millennium Management Llc | 2023-12-31 | 468.8 K | Pinnacle Associates Inc | 2023-12-31 | 456.7 K | Bank Of New York Mellon Corp | 2023-12-31 | 453.7 K | Blackrock Inc | 2023-12-31 | 6.8 M | Vanguard Group Inc | 2023-12-31 | 5.2 M |
CerenceInc Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (2.5M) | (2.5M) | (31.8M) | 27.8M | 32.0M | 33.5M | |
| Free Cash Flow | 25.8M | 62.3M | (19.6M) | 2.4M | 2.1M | 2.0M | |
| Depreciation | 30.0M | 29.7M | 23.9M | 16.0M | 18.4M | 26.6M | |
| Capital Expenditures | 19.0M | 12.0M | 17.4M | 5.1M | 5.9M | 10.7M | |
| Net Income | (20.6M) | 45.9M | (310.8M) | (56.3M) | (50.6M) | (48.1M) | |
| End Period Cash Flow | 136.1M | 128.4M | 94.8M | 101.2M | 116.3M | 90.2M | |
| Change To Netincome | (71.5M) | 61.2M | 60.1M | 350.1M | 402.6M | 422.7M | |
| Other Non Cash Items | 25.3M | 4.0M | 224.7M | 1.1M | 1.3M | 1.2M |
CerenceInc Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to CerenceInc or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that CerenceInc's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a CerenceInc stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -1.17 | |
β | Beta against NYSE Composite | 2.22 | |
σ | Overall volatility | 3.69 | |
Ir | Information ratio | -0.29 |
CerenceInc Volatility Alert
CerenceInc exhibits very low volatility with skewness of -0.81 and kurtosis of 1.9. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure CerenceInc's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact CerenceInc's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.CerenceInc Fundamentals Vs Peers
Comparing CerenceInc's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze CerenceInc's direct or indirect competition across all of the common fundamentals between CerenceInc and the related equities. This way, we can detect undervalued stocks with similar characteristics as CerenceInc or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of CerenceInc's fundamental indicators could also be used in its relative valuation, which is a method of valuing CerenceInc by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare CerenceInc to competition |
| Fundamentals | CerenceInc | Peer Average |
| Return On Equity | -0.0417 | -0.31 |
| Return On Asset | 0.02 | -0.14 |
| Profit Margin | (0.09) % | (1.27) % |
| Operating Margin | 0.43 % | (5.51) % |
| Current Valuation | 587.39 M | 16.62 B |
| Shares Outstanding | 41.67 M | 571.82 M |
| Shares Owned By Insiders | 1.88 % | 10.09 % |
| Shares Owned By Institutions | 96.20 % | 39.21 % |
| Number Of Shares Shorted | 6.29 M | 4.71 M |
| Price To Earning | 14.18 X | 28.72 X |
| Price To Book | 0.76 X | 9.51 X |
| Price To Sales | 1.59 X | 11.42 X |
| Revenue | 294.48 M | 9.43 B |
| Gross Profit | 233.71 M | 27.38 B |
| EBITDA | 6.33 M | 3.9 B |
| Net Income | (56.25 M) | 570.98 M |
| Cash And Equivalents | 129.34 M | 2.7 B |
| Cash Per Share | 3.28 X | 5.01 X |
| Total Debt | 289.33 M | 5.32 B |
| Debt To Equity | 0.30 % | 48.70 % |
| Current Ratio | 1.65 X | 2.16 X |
| Book Value Per Share | 17.73 X | 1.93 K |
| Cash Flow From Operations | 7.5 M | 971.22 M |
| Short Ratio | 13.43 X | 4.00 X |
| Earnings Per Share | (0.82) X | 3.12 X |
| Price To Earnings To Growth | 0.96 X | 4.89 X |
| Target Price | 21.5 | |
| Number Of Employees | 1.7 K | 18.84 K |
| Beta | 2.46 | -0.15 |
| Market Capitalization | 406.74 M | 19.03 B |
| Total Asset | 1.3 B | 29.47 B |
| Retained Earnings | (333.66 M) | 9.33 B |
| Working Capital | 77.63 M | 1.48 B |
Note: Disposition of 10762 shares by Stefan Ortmanns of CerenceInc at 10.0395 subject to Rule 16b-3 [view details]
CerenceInc Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as CerenceInc . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 23445.43 | |||
| Daily Balance Of Power | 0.7632 | |||
| Rate Of Daily Change | 1.03 | |||
| Day Median Price | 9.87 | |||
| Day Typical Price | 9.93 | |||
| Price Action Indicator | 0.33 | |||
| Period Momentum Indicator | 0.29 |
About CerenceInc Buy or Sell Advice
When is the right time to buy or sell CerenceInc? Buying financial instruments such as CerenceInc Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Other Current Liabilities | 48.0M | 48.7M | 56.0M | 36.4M | Total Assets | 1.3B | 1.3B | 1.5B | 1.6B |
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Check out CerenceInc Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade CerenceInc Stock refer to our How to Trade CerenceInc Stock guide.You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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When running CerenceInc's price analysis, check to measure CerenceInc's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CerenceInc is operating at the current time. Most of CerenceInc's value examination focuses on studying past and present price action to predict the probability of CerenceInc's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CerenceInc's price. Additionally, you may evaluate how the addition of CerenceInc to your portfolios can decrease your overall portfolio volatility.
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Is CerenceInc's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CerenceInc. If investors know CerenceInc will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CerenceInc listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.10) | Earnings Share (0.82) | Revenue Per Share 8.617 | Quarterly Revenue Growth 0.654 | Return On Assets 0.02 |
The market value of CerenceInc is measured differently than its book value, which is the value of CerenceInc that is recorded on the company's balance sheet. Investors also form their own opinion of CerenceInc's value that differs from its market value or its book value, called intrinsic value, which is CerenceInc's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CerenceInc's market value can be influenced by many factors that don't directly affect CerenceInc's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CerenceInc's value and its price as these two are different measures arrived at by different means. Investors typically determine if CerenceInc is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CerenceInc's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.