Cerence Stock Analysis

CRNC -  USA Stock  

USD 61.25  0.77  1.24%

The big decline in price over the last few months for Cerence could raise concerns from investors as the firm it trading at a share price of 61.25 on 510,300 in volume. The company directors and management failed to add value to investors and positioning the firm supply of money to exploit market volatility in December. However, diversifying your holdings with Cerence or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.56. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Cerence partners.
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Cerence Stock Analysis 

 
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The Cerence stock analysis report makes it easy to digest most publicly released information about Cerence and get updates on important government artifacts, including earning estimates, SEC corporate filings, and announcements. Cerence Stock analysis module also helps to analyze the Cerence price relationship with some important fundamental indicators such as market cap and management efficiency.

Cerence Stock Analysis Notes

About 102.0% of the company shares are held by institutions such as insurance companies. The book value of Cerence was currently reported as 27.14. The company has Price/Earnings To Growth (PEG) ratio of 2.2. Cerence had not issued any dividends in recent years. Cerence Inc. provides AI powered virtual assistants for the mobilitytransportation market worldwide. It also provides conversational artificial intelligence-based solutions, including speech recognition, natural language understanding, speech signal enhancement, text-to-speech, and acoustic modeling technology. Cerence operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 1700 people. For more info on Cerence please contact the company at 857 362 7300 or go to https://www.cerence.com.

Cerence Quarterly Cost of Revenue

24.13 MillionShare

Cerence Investment Alerts

Many investors view ongoing market volatility as an opportunity to purchase more stocks at a favorable price or short it to generate a bearish trend profit opportunity. If you are one of those investors, make sure you clearly understand the position you are entering. Cerence's investment alerts are automatically generated signals that are significant enough to either complement your investing judgment regarding Cerence or challenge it. These alerts can help you understand what you are buying and avoid costly mistakes.
Cerence generated a negative expected return over the last 90 days
Cerence has high historical volatility and very poor performance
Cerence has a frail financial position based on the latest SEC disclosures
Latest headline from MacroaxisInsider: Acquisition by Ortmanns Stefan of 32560 shares of Cerence subject to Rule 16b-3

Cerence Upcoming and Recent Events

Earnings reports are used by Cerence to provide an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Every quarterly earnings report provides investors with three things: an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Cerence previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
Upcoming Quarterly Report14th of February 2022
Next Earnings Report9th of May 2022
Next Fiscal Quarter End31st of December 2021
Next Fiscal Year End28th of November 2022
Last Quarter Report30th of September 2021
Last Earning Announcement31st of December 2020

Cerence Largest EPS Surprises

Earnings surprises can significantly impact Cerence's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2021-08-09
2021-06-300.54420.620.075813 
2021-02-08
2020-12-310.5050.590.08516 
2021-11-22
2021-09-300.5650.660.09516 
View All Earnings Estimates

Cerence SEC Filings

SEC filings are important regulatory documents required of all public companies to provide to potential investors. Cerence prospectus issued under the guidelines of SEC is a legal declaration of facts and statements to ensure that Cerence investors are not misled. SEC filings are required by law to meet strict transparency standards and other important legal constraints. Although many companies may choose careful wording to disguise some material information, SEC filings make crucial Cerence specific information freely available to individual and institutional investors to make a timely investment decision.
15th of December 2021
Financial Statements and Exhibits. Regulation FD Disclosure. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
View
22nd of November 2021
Financial Statements and Exhibits. Results of Operations and Financial Condition
View
9th of August 2021
Financial Statements and Exhibits. Unclassified Corporate Event. Results of Operations and Financial Condition
View
10th of May 2021
Financial Statements and Exhibits. Results of Operations and Financial Condition
View

Cerence Market Capitalization

The company currently falls under 'Mid-Cap' category with current market capitalization of 2.43 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Cerence's market, we take the total number of its shares issued and multiply it by Cerence's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and these looking for more risk prefer small-cap and mid-cap equities.

Cerence Profitablity

Cerence's profitability indicators refer to fundamental financial ratios that showcase Cerence's ability to generate income relative to its revenue or operating costs. If, let's say, Cerence is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Cerence's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Cerence's profitability requires more research than a typical breakdown of Cerence's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
The company has Profit Margin (PM) of 11.85 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is very large. Similarly, it shows Operating Margin (OM) of 23.75 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.24.
Last ReportedProjected for 2022
Return on Average Assets 0.0243  0.0234 
Return on Average Equity 0.0405  0.0362 
Return on Invested Capital 0.10  0.16 
Return on Sales 0.14  0.13 

Management Efficiency

The entity has return on total asset (ROA) of 2.42 % which means that it generated profit of $2.42 on every $100 spent on asset. This is way below average. Similarly, it shows return on stockholders equity (ROE) of 4.61 %, meaning that it created $4.61 on every $100 dollars invested by stockholders. Cerence management efficiency ratios could be used to measure how well cerence manages its routine affairs as well as how well it operates its assets and liabilities. The current year Return on Invested Capital is expected to grow to 0.16, whereas Return on Average Assets are forecasted to decline to 0.0234. Cerence Current Assets are projected to increase significantly based on the last few years of reporting. The past year's Current Assets were at 330.11 Million. The current year Assets Non Current is expected to grow to about 1.6 B, whereas Total Assets are forecasted to decline to about 1.9 B.
Last ReportedProjected for 2022
Book Value per Share 24.60  24.55 
Enterprise Value over EBIT 70.15  75.69 
Enterprise Value over EBITDA 47.82  48.92 
Price to Book Value 4.07  3.30 
Tangible Assets Book Value per Share 16.81  14.41 
Enterprise Value4.4 B3.5 B
Tangible Asset Value634.6 M520.4 M

Technical Drivers

As of the 26th of January, Cerence shows the risk adjusted performance of (0.1), and Mean Deviation of 3.09. Cerence technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate nineteen technical drivers for Cerence, which can be compared to its rivals. Please confirm Cerence value at risk, and the relationship between the jensen alpha and semi variance to decide if Cerence is priced correctly, providing market reflects its regular price of 61.25 per share. Given that Cerence has jensen alpha of (0.48), we suggest you to validate Cerence's prevailing market performance to make sure the company can sustain itself at a future point.

Cerence Price Movement Analysis

The output start index for this execution was one with a total number of output elements of sixty. The Simple Moving Average indicator is calculated by adding the closing price of Cerence for a given number of time periods and then dividing this total by the number of time periods. It is used to smooth out Cerence short-term fluctuations and highlight longer-term trends or cycles. View also all equity analysis or get more info about simple moving average overlap studies indicator.

Cerence Insider Trading Activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Cerence insiders, such as employees or executives, is commonly permitted as long as it does not rely on Cerence's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Cerence insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Cerence Predictive Daily Indicators

Cerence intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Cerence stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Cerence Forecast Models

Cerence time-series forecasting models is one of many Cerence's stock analysis techniquest aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Cerence's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the stock market movement and maximize returns from investment trading.

About Cerence Stock Analysis

Stock analysis is the technique used by a trader or investor to examine and evaluate how Cerence stock is reacting to, or reflecting on a current stock market direction and economic conditions. It can be used to make informed decisions about market timing, and when buying or selling Cerence shares will generate the highest return on investment. We also built our stock analysis module to help investors to gain an insight into the world economy as a whole, the stock market, thematic ideas, a specific sector, or an individual stock such as Cerence. By using and applying Cerence Stock analysis, traders can create a robust methodology for identifying Cerence entry and exit points for their positions.
Last ReportedProjected for 2022
EBITDA Margin 0.21  0.21 
Gross Margin 0.67  0.65 
Profit Margin 0.11  0.11 
Cerence Inc. provides AI powered virtual assistants for the mobilitytransportation market worldwide. It also provides conversational artificial intelligence-based solutions, including speech recognition, natural language understanding, speech signal enhancement, text-to-speech, and acoustic modeling technology. Cerence operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 1700 people.

Current Cerence Analysis - Recommendations

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Cerence analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Cerence analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target PriceAdvice# of Analysts
120.2Buy10Odds
Cerence current and past analyst recommendations published by a number of research institutions as well as average analyst consensus.
Most Cerence analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to helps potential investors understand Cerence stock's fair price compared to its market value. Analysts arrive at stock ratings after researching public financial statements of Cerence, talking to its executives and customers, or listening to Cerence conference calls.
Cerence Analyst Advice Details

Cerence Stock Analysis Indicators

Cerence stock analysis indicators help investors evaluate how Cerence stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing and determine when trading Cerence shares will generate the highest return on investment. By understating and applying Cerence stock analysis, traders can identify Cerence position entry and exit signals to maximize returns.
Quick Ratio1.61
Fifty Two Week Low57.01
Revenue Growth7.50%
Average Daily Volume Last 10 Day682.73k
Shares Short Prior Month5.14M
Average Daily Volume In Three Month631.02k
Earnings Growth-5.20%
Shares Percent Shares Out11.30%
Earnings Quarterly Growth-2.60%
Gross Margins75.84%
Forward Price Earnings19.32
Short Percent Of Float12.97%
Float Shares38.07M
Fifty Two Week High139.00
Fifty Day Average79.83
Enterprise Value To Ebitda36.16
Two Hundred Day Average96.99
Enterprise Value To Revenue8.59
Continue to Trending Equities. Note that the Cerence information on this page should be used as a complementary analysis to other Cerence's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Complementary Tools for Cerence Stock analysis

When running Cerence price analysis, check to measure Cerence'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 Cerence is operating at the current time. Most of Cerence's value examination focuses on studying past and present price action to predict the probability of Cerence's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Cerence's price. Additionally, you may evaluate how the addition of Cerence to your portfolios can decrease your overall portfolio volatility.
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Is Cerence'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 Cerence. If investors know Cerence 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 Cerence listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Cerence is measured differently than its book value, which is the value of Cerence that is recorded on the company's balance sheet. Investors also form their own opinion of Cerence's value that differs from its market value or its book value, called intrinsic value, which is Cerence'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 Cerence's market value can be influenced by many factors that don't directly affect Cerence'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 Cerence's value and its price as these two are different measures arrived at by different means. Investors typically determine Cerence value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cerence'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.