CRNC Cerence stock Story

CRNC -  USA Stock  

USD 109.14  3.78  3.35%

It appears Cerence will continue to recover much faster as its share price surged up 3.08% today. This firm's current daily volatility is 3.83 percent, with a beta of 0.08 and an alpha of 0.34 over DOW. As many of us are excited about business services, it is fair to go over Cerence. What exactly are Cerence shareholders getting in December?
Published over six months ago
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Should we continue shadow Cerence (NASDAQ:CRNC) executives?
Cerence currently holds roughly 132.84 M in cash with 37.99 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.62. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cerence has an asset utilization ratio of 20.63 percent. This suggests that the company is making $0.21 for each dollar of assets. An increasing asset utilization means that Cerence is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Cerence, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Cerence along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Cerence's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Cerence in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Cerence. Your research has to be compared to or analyzed against Cerence's peers to derive any actionable benefits. When done correctly, Cerence's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Cerence.

How important is Cerence's Liquidity

Cerence financial leverage refers to using borrowed capital as a funding source to finance Cerence ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cerence financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Cerence's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Cerence, but it might be worth checking our own buy vs. sell analysis

Cerence Correlation with Peers

Investors in CRNC Cerence can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Cerence. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Cerence and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities CRNC Cerence is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of CRNC Cerence for more details

Sale by Dhawan Sanjay of 1612 shares of Cerence

Legal trades by Cerence insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
CRNC insider trading alert for sale of common stock by Dhawan Sanjay, Chief Executive Officer, on 17th of June 2021. This event was filed by Cerence Inc with SEC on 2021-06-17. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down a bit more

Cerence appears to be very steady, given 1 month investment horizon. Cerence secures Sharpe Ratio (or Efficiency) of 0.0789, which signifies that the company had 0.0789% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Cerence, which you can use to evaluate future volatility of the firm. Please makes use of Cerence Mean Deviation of 3.17, risk adjusted performance of 0.1181, and Downside Deviation of 3.8 to double-check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Over 3 percent rise for Cerence. What does it mean for investors?

The downside deviation is down to 3.8 as of today. Cerence shows above-average downside volatility for the selected time horizon. We advise investors to inspect Cerence further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Cerence future alpha.

Our Final Takeaway

Whereas some firms under the software—application industry are still a bit expensive, Cerence may offer a potential longer-term growth to investors. To conclude, as of the 15th of November 2020, we believe Cerence is currently overvalued. It barely shadows the market and projects low chance of distress in the next two years. Our latest 30 days Buy-Hold-Sell recommendation on the company is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Cerence. Please refer to our Terms of Use for any information regarding our disclosure principles.

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