Cerence Stock Buy Hold or Sell Recommendation
| CRNC Stock | USD 19.33 11.40 143.76% |
Given the investment horizon of 90 days and your way above-average risk tolerance, our recommendation regarding Cerence is 'Strong Hold'. Macroaxis provides Cerence buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Cerence positions.
Check out Cerence 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 Cerence Stock refer to our How to Trade Cerence Stock guide. In addition, we conduct extensive research on individual companies such as Cerence and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Cerence. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Cerence |
Execute Cerence Buy or Sell Advice
The Cerence recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Cerence. Macroaxis does not own or have any residual interests in Cerence or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Cerence's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Good | Details | |
Volatility | Relatively risky | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | About Average | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Cerence Trading Alerts and Improvement Suggestions
| Cerence is way too risky over 90 days horizon | |
| Cerence appears to be risky and price may revert if volatility continues | |
| Cerence has high likelihood to experience some financial distress in the next 2 years | |
| The company reported the previous year's revenue of 331.5 M. Net Loss for the year was (588.08 M) with profit before overhead, payroll, taxes, and interest of 233.71 M. | |
| Over 83.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from seekingalpha.com: Disposition of 5000 shares by Thomas Beaudoin of Cerence at 7.98 subject to Rule 16b-3 |
Cerence Returns Distribution Density
The distribution of Cerence's historical returns is an attempt to chart the uncertainty of Cerence's future price movements. The chart of the probability distribution of Cerence daily returns describes the distribution of returns around its average expected value. We use Cerence price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Cerence returns is essential to provide solid investment advice for Cerence.
| Mean Return | 2.19 | Value At Risk | -8.36 | Potential Upside | 11.99 | Standard Deviation | 15.29 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Cerence 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.
Cerence Stock Institutional Investors
| Shares | Jacobs Levy Equity Management, Inc. | 2024-09-30 | 823.4 K | Two Sigma Investments Llc | 2024-09-30 | 798 K | Jane Street Group Llc | 2024-09-30 | 752.5 K | Bank Of America Corp | 2024-09-30 | 665 K | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 625.8 K | Mirae Asset Global Etfs Holdings Ltd. | 2024-09-30 | 530 K | Millennium Management Llc | 2024-09-30 | 513.3 K | Two Sigma Advisers, Llc | 2024-09-30 | 510.3 K | Raymond James Finl Svs Advisors, Inc. | 2024-09-30 | 486.4 K | American Capital Management Inc | 2024-09-30 | 3.9 M | Blackrock Inc | 2024-06-30 | 3.3 M |
Cerence Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change To Inventory | (2.5M) | (2.5M) | (31.8M) | 27.8M | 32.0M | 33.5M | |
| Investments | (30.7M) | 4.9M | 5.8M | 4.4M | 5.0M | 5.3M | |
| Change In Cash | (7.6M) | (33.6M) | 6.3M | 20.3M | 18.3M | 17.4M | |
| Free Cash Flow | 62.3M | (19.6M) | 2.4M | 12.2M | 11.0M | 10.4M | |
| Depreciation | 29.7M | 23.9M | 16.0M | 10.6M | 9.6M | 18.2M | |
| Other Non Cash Items | 4.0M | 224.7M | 1.1M | 594.6M | 683.8M | 718.0M | |
| Capital Expenditures | 12.0M | 17.4M | 5.1M | 5.0M | 5.7M | 10.1M | |
| Net Income | 45.9M | (310.8M) | (56.3M) | (588.1M) | (529.3M) | (502.8M) | |
| End Period Cash Flow | 128.4M | 94.8M | 101.2M | 121.5M | 139.7M | 95.6M | |
| Change To Netincome | (71.5M) | 61.2M | 60.1M | 350.1M | 402.6M | 422.7M |
Cerence 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 Cerence 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 Cerence'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 Cerence 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 Dow Jones | 2.18 | |
β | Beta against Dow Jones | 2.89 | |
σ | Overall volatility | 23.34 | |
Ir | Information ratio | 0.14 |
Cerence Volatility Alert
Cerence is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cerence'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 Cerence'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.Cerence Fundamentals Vs Peers
Comparing Cerence'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 Cerence's direct or indirect competition across all of the common fundamentals between Cerence and the related equities. This way, we can detect undervalued stocks with similar characteristics as Cerence or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Cerence's fundamental indicators could also be used in its relative valuation, which is a method of valuing Cerence by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Cerence to competition |
| Fundamentals | Cerence | Peer Average |
| Return On Equity | -1.35 | -0.31 |
| Return On Asset | 0.0377 | -0.14 |
| Profit Margin | (1.62) % | (1.27) % |
| Operating Margin | 0.05 % | (5.51) % |
| Current Valuation | 505.71 M | 16.62 B |
| Shares Outstanding | 42.99 M | 571.82 M |
| Shares Owned By Insiders | 5.74 % | 10.09 % |
| Shares Owned By Institutions | 83.40 % | 39.21 % |
| Number Of Shares Shorted | 7.29 M | 4.71 M |
| Price To Earning | 14.18 X | 28.72 X |
| Price To Book | 2.39 X | 9.51 X |
| Price To Sales | 0.94 X | 11.42 X |
| Revenue | 331.5 M | 9.43 B |
| Gross Profit | 233.71 M | 27.38 B |
| EBITDA | (561.43 M) | 3.9 B |
| Net Income | (588.08 M) | 570.98 M |
| Cash And Equivalents | 129.34 M | 2.7 B |
| Cash Per Share | 3.28 X | 5.01 X |
| Total Debt | 100.42 M | 5.32 B |
| Debt To Equity | 0.30 % | 48.70 % |
| Current Ratio | 1.65 X | 2.16 X |
| Book Value Per Share | 3.69 X | 1.93 K |
| Cash Flow From Operations | 17.2 M | 971.22 M |
| Short Ratio | 3.71 X | 4.00 X |
| Earnings Per Share | (14.12) X | 3.12 X |
| Price To Earnings To Growth | 0.96 X | 4.89 X |
| Target Price | 7.0 | |
| Number Of Employees | 1.7 K | 18.84 K |
| Beta | 2.36 | -0.15 |
| Market Capitalization | 337.46 M | 19.03 B |
| Total Asset | 702.36 M | 29.47 B |
| Retained Earnings | (921.74 M) | 9.33 B |
| Working Capital | 48.7 M | 1.48 B |
Note: Disposition of 5000 shares by Thomas Beaudoin of Cerence at 7.36 subject to Rule 16b-3 [view details]
Cerence Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Cerence . 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.
About Cerence Buy or Sell Advice
When is the right time to buy or sell Cerence? Buying financial instruments such as Cerence 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.
Use Investing Ideas to Build Portfolios
In addition to having Cerence in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Sports
Companies in sporting activities arena as well as manufacturers of sporting goods and sport retailers. The Sports theme has 25 constituents at this time.
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Check out Cerence 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 Cerence Stock refer to our How to Trade Cerence Stock guide.You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Is Systems Software space 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.
Quarterly Earnings Growth (0.10) | Earnings Share (14.12) | Revenue Per Share | Quarterly Revenue Growth 0.144 | Return On Assets |
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 if Cerence is a good investment 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.