Cerence Inc. (CRNC): Choosing The Technical Investor Route


Cerence Inc. (NASDAQ:CRNC) does about 523.76K shares in volume on a normal day but saw 303926 shares change hands in Friday trading. The company now has a market cap of 1.13B USD. Its current market price is $28.31, marking a decrease of -1.39% compared to the previous close of $28.71. The 52 week high reached by this stock is $41.60 whilst the lowest price level in 52 weeks is $12.82. The script in recent trading has seen the stock touch a high of $28.69 and a low of $27.50.

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Cerence Inc. (CRNC) has a 20-day trading average at $27.06 and the current price is -31.95% off the 52-week high compared with 120.83% distance from its 52-week low. The 50-day simple moving average of the closing price is $22.63 and its 200-day simple moving average is $22.39. If we look at the stock’s price movements over the week, volatility stands at 3.97%, which increases to 5.27% over 1 month. It is also key to look at other market indicators of price movement for the stock, where we see that the relative strength index (RSI) is at 66.69 to suggest the stock is neutral.

10 analysts observing the Cerence Inc. (CRNC) stock have set the 12-month price targets for the company’s shares at between $26.00 and $42.00. The consensus objective for the share price is $32.56, suggesting that the stock has a potential upside of 13.05% over the period. The median price target is 11.53% away from the current levels at $32.00.

FactSet Research has provided data showing that 10 brokerages have issued ratings for the stock. 0 analysts have rated it as a sell, while 0 advise that it is a overweight. 4 analysts have rated it as a buy and 6 have advised that investors hold their positions. The consensus recommendation rating is Overweight and Wall Street’s advice is for investors to Moderate Buy the stock.

The company shares received a number of brokerage firm price updates over the past month, with the latest being on February 09, 2023 when Craig Hallum upgraded the stock to “Buy” and issued a price target of between $24 and $40. Craig Hallum downgraded its price target at $45-$24.

The current price level is 5.76%, 26.28%, and 26.37% away from its SMA20, SMA50, and SMA200 respectively, with the CRNC price moving above the 50-day SMA on February 17. Cerence Inc. (CRNC) stock is down -3.71% over the week and 32.17% over the past month. Its price is 52.78% year-to-date and -32.11% over the past year.

The stock last released its quarterly earnings report for quarter ended 12/30/2022, with the company’s earnings per share (EPS) of $0.36 above consensus estimates by $0.27. The company’s next earnings report is expected on 05/10/2023, with forecasts estimating quarterly EPS at -$0.11 and -$0.06 for whole year. CRNC’s earnings per share are forecast to shrink by -104.80% this year and 2,316.70% over next year. Expected sales for next quarter are $74.78 million, which analysts say will come at $286.69 million for the current fiscal year and next year at $374.37 million. In addition, estimates put the company’s current quarterly revenue at an average of $66.93 million.

Its 12-month price target is $32.00. To reach the target analysts have set, the stock logically needs to grow 13.05 percent from here. Of course, the average price target is just what the average analysts believe a stock will be worth in the next 52 weeks, and is only one metric. There are analysts with lower targets than the average, including one bearish Wall Street research firm advocating investors to wait for the price to pull back to $26.00, given the recent momentum. And then, on the bullish side of things, one analyst is expecting the stock to peak at $42.00.

Outstanding shares total 39.96M with insiders holding 1.15% of the shares and institutional holders owning 95.56% of the company’s common stock. The company has a return on investment of -30.10% and return on equity of -38.60%. The forward price to earnings ratio is 20.79. The beta has a value of 2.66. Price to book ratio is 1.57 and price to sales ratio is 3.57.

According to a U.S. Securities and Exchange Commission filing, iShares Core S&P Small Cap ETF has added its position in Cerence Inc. (CRNC) to 2,940,623 shares, mirroring a recent increase by 0.08%. iShares Core S&P Small Cap ETF added 2224.0 shares of Cerence Inc. common stock bringing its total worth to about $72.1 million at the end of recent close, SEC documents show. Vanguard Total Stock Market Index raise their holdings by 1.48% in the company over the course of the most recent quarter. It now holds a 3.01% position in Cerence Inc. thanks to 1.2 million shares amounting to $29.49 million.


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