Is Cerence Stock a Good Investment?

Cerence Investment Advice

CRNC

To provide specific investment advice or recommendations on Cerence stock, we recommend investors consider the following general factors when evaluating Cerence. This will help you to make an informed decision on whether to include Cerence in one of your diversified portfolios:

Examine Cerence's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Cerence's leadership team and their track record. Good management can help Cerence navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Systems Software space and any emerging trends that could impact Cerence's business and its evolving consumer preferences.
Compare Cerence's performance and market position to its competitors. Analyze how Cerence is positioned in terms of product offerings, innovation, and market share.
Check if Cerence pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Cerence's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Cerence stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Cerence is a good investment.

Sell

Buy

Hold

We provide trade advice to complement the prevailing expert consensus on Cerence. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Cerence is not overpriced, please confirm all Cerence fundamentals, including its price to earning, net income, book value per share, as well as the relationship between the revenue and total debt . Given that Cerence has a price to earning of 14.18 X, we suggest you to validate Cerence market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance	Modest	Details
Volatility	Very risky	Details
Hype Condition	Under hyped	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Above 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

Examine Cerence Stock

Researching Cerence's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 79.0% of the company shares are held by institutions such as insurance companies. The book value of Cerence was currently reported as 2.81. The company has Price/Earnings To Growth (PEG) ratio of 0.96. Cerence recorded a loss per share of 15.27. The entity had not issued any dividends in recent years.

To determine if Cerence is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Cerence's research are outlined below:

	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 165.34 M.
	Over 79.0% of the company shares are held by institutions such as insurance companies
	Latest headline from news.google.com: Assessing Cerence Insights From 5 Financial Analysts - Benzinga

Cerence Quarterly Gross Profit

33.07 Million

Cerence uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Cerence. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Cerence's 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.

	6th of February 2024 Upcoming Quarterly Report	View
	14th of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	25th of November 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	30th of September 2023 Last Financial Announcement	View

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. Below are the table of largest EPS Surprises Cerence's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2025-02-04	2024-12-31	-0.0571	-0.03	0.0271	47
2023-11-27	2023-09-30	0.15	0.09	-0.06	40
2022-02-07	2021-12-31	0.51	0.59	0.08	15
2021-08-09	2021-06-30	0.54	0.62	0.08	14
2021-02-08	2020-12-31	0.51	0.59	0.08	15
2023-05-09	2023-03-31	-0.13	-0.04	0.09	69
2022-11-29	2022-09-30	-0.23	-0.14	0.09	39
2023-08-08	2023-06-30	-0.14	-0.04	0.1	71

Know Cerence's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Cerence is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Cerence backward and forwards among themselves. Cerence's institutional investor refers to the entity that pools money to purchase Cerence's securities or originate 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
Morgan Stanley - Brokerage Accounts	2024-12-31	844.7 K
Connor Clark & Lunn Inv Mgmt Ltd	2024-12-31	796.2 K
Bank Of America Corp	2024-12-31	626.4 K
Two Sigma Investments Llc	2024-12-31	590.4 K
Mirae Asset Global Etfs Holdings Ltd.	2024-12-31	523.5 K
Raymond James Finl Svs Advisors, Inc.	2024-09-30	486.4 K
Northern Trust Corp	2024-12-31	369.8 K
Jpmorgan Chase & Co	2024-12-31	365.6 K
Walleye Trading Advisors, Llc	2024-12-31	335.8 K
American Capital Management Inc	2024-12-31	3.5 M
Blackrock Inc	2024-12-31	3.5 M

Note, although Cerence's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Cerence's market capitalization trends

The company currently falls under 'Small-Cap' category with a current market capitalization of 425.08 M.

Market Cap

502.3 Million

Cerence's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	(1.67)	(1.59)
Return On Capital Employed	(1.37)	(1.30)
Return On Assets	(0.96)	(0.91)
Return On Equity	(4.79)	(4.55)

The company has Profit Margin (PM) of (2.61) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (0.12) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $0.12.

Determining Cerence's profitability involves analyzing its financial statements and using various financial metrics to determine if Cerence is a good buy. For example, gross profit margin measures Cerence's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Cerence's profitability and make more informed investment decisions.

Cerence's Earnings Breakdown by Geography

Please note, the presentation of Cerence's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Cerence's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Cerence's management manipulating its earnings.

Evaluate Cerence's management efficiency

Cerence has return on total asset (ROA) of (0.0125) % which means that it has lost $0.0125 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (1.4938) %, meaning that it created substantial loss on money invested by shareholders. Cerence's 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's Return On Tangible Assets is expected to grow to -1.59. The current year's Return On Capital Employed is expected to grow to -1.3. At present, Cerence's Other Assets are projected to increase significantly based on the last few years of reporting. The current year's Other Current Assets is expected to grow to about 91.5 M, whereas Non Current Assets Total are forecasted to decline to about 373.5 M.

	Last Reported	Projected for Next Year
Book Value Per Share	3.90	3.70
Tangible Book Value Per Share	(4.35)	(4.57)
Enterprise Value Over EBITDA	(0.23)	(0.24)
Price Book Value Ratio	0.84	1.04
Enterprise Value Multiple	(0.23)	(0.24)
Price Fair Value	0.84	1.04
Enterprise Value	565.1 M	502.3 M

Leadership effectiveness at Cerence is a strong indicator of its financial stability. We analyze various metrics to provide insights into the stock's investment viability.

Beta

2.865

Basic technical analysis of Cerence Stock

As of the 19th of March, Cerence shows the Mean Deviation of 7.3, downside deviation of 6.4, and Risk Adjusted Performance of 0.0703. 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.

Cerence's 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.

		Klevorn Marcy S 2 days ago Insider Trading
		Christian Mentz over two weeks ago Disposition of 3600 shares by Christian Mentz of Cerence at 14.73 subject to Rule 16b-3
		Matus Kristi Ann over a month ago Acquisition by Matus Kristi Ann of 9955 shares of Cerence at 0.01 subject to Rule 16b-3
		Thomas Beaudoin over a month ago Disposition of 5000 shares by Thomas Beaudoin of Cerence at 11.68 subject to Rule 16b-3
		Thomas Beaudoin over three months ago Disposition of 5000 shares by Thomas Beaudoin of Cerence at 7.36 subject to Rule 16b-3
		Jennifer Salinas over three months ago Disposition of 8976 shares by Jennifer Salinas of Cerence at 7.21 subject to Rule 16b-3
		Jennifer Salinas over three months ago Disposition of 13955 shares by Jennifer Salinas of Cerence at 3.59 subject to Rule 16b-3
		Thomas Beaudoin over three months ago Disposition of 5000 shares by Thomas Beaudoin of Cerence at 3.11 subject to Rule 16b-3
		Thomas Beaudoin over six months ago Disposition of 5000 shares by Thomas Beaudoin of Cerence at 3.34 subject to Rule 16b-3
		Thomas Beaudoin over six months ago Disposition of 5000 shares by Thomas Beaudoin of Cerence at 3.15 subject to Rule 16b-3
		Thomas Beaudoin over six months ago Disposition of 5000 shares by Thomas Beaudoin of Cerence at 2.81 subject to Rule 16b-3
		Rodriquez Antonio over six months ago Insider Trading

Cerence's Outstanding Corporate Bonds

Cerence issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Cerence uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Cerence bonds can be classified according to their maturity, which is the date when Cerence has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	US156700BD72 Corp Bond US156700BD72	View
	CenturyLink 765 percent Corp Bond US156700AT34	View
	CenturyLink 5625 percent Corp Bond US156700AZ93	View
	CENTURYLINK INC 76 Corp Bond US156700AM80	View
	Morgan Stanley 3971 Corp Bond US61744YAL20	View
	AerCap Global Aviation Corp Bond US00773HAA59	View

View All Cerence Corporate Bonds

Understand Cerence's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Cerence's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.0703
	Market Risk Adjusted Performance	0.3199
	Mean Deviation	7.3
	Semi Deviation	5.8
	Downside Deviation	6.4
	Coefficient Of Variation	1448.5
	Standard Deviation	18.81
	Variance	353.93
	Information Ratio	0.0737
	Jensen Alpha	1.69
	Total Risk Alpha	3.36
	Sortino Ratio	0.2165
	Treynor Ratio	0.3099
	Maximum Drawdown	161.26
	Value At Risk	(9.52)
	Potential Upside	10.87
	Downside Variance	40.95
	Semi Variance	33.69
	Expected Short fall	(9.47)
	Skewness	6.86
	Kurtosis	52.38

	Risk Adjusted Performance	0.0703
	Market Risk Adjusted Performance	0.3199
	Mean Deviation	7.3
	Semi Deviation	5.8
	Downside Deviation	6.4
	Coefficient Of Variation	1448.5
	Standard Deviation	18.81
	Variance	353.93
	Information Ratio	0.0737
	Jensen Alpha	1.69
	Total Risk Alpha	3.36
	Sortino Ratio	0.2165
	Treynor Ratio	0.3099
	Maximum Drawdown	161.26
	Value At Risk	(9.52)
	Potential Upside	10.87
	Downside Variance	40.95
	Semi Variance	33.69
	Expected Short fall	(9.47)
	Skewness	6.86
	Kurtosis	52.38

Consider Cerence's intraday 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.

	Accumulation Distribution	41326.99
	Daily Balance Of Power	(0.15)
	Rate Of Daily Change	0.99
	Day Median Price	9.78
	Day Typical Price	9.78
	Price Action Indicator	(0.04)
	Period Momentum Indicator	(0.07)
	Relative Strength Index	42.79

Cerence Corporate Filings

F4	25th of February 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
8K	18th of February 2025 Report filed with the SEC to announce major events that shareholders should know about	View Verify
	14th of February 2025 Other Reports	View Verify
	16th of January 2025 Other Reports	View Verify

Cerence time-series forecasting models is one of many Cerence's stock analysis techniques 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 market movement and maximize returns from investment trading.

Cerence Stock media impact

Far too much social signal, news, headlines, and media speculation about Cerence that are available to investors today. That information is available publicly through Cerence media outlets and privately through word of mouth or via Cerence internal channels. However, regardless of the origin, that massive amount of Cerence data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Cerence news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Cerence relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Cerence's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Cerence alpha.

Cerence Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Cerence can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Cerence Historical Investor Sentiment

Investor biases related to Cerence's public news can be used to forecast risks associated with an investment in Cerence. The trend in average sentiment can be used to explain how an investor holding Cerence can time the market purely based on public headlines and social activities around Cerence. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Cerence's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Cerence and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Cerence news discussions. The higher the estimate score, the more favorable the investor's outlook on Cerence.

Cerence Maximum Pain Price Across May 16th 2025 Option Contracts

Cerence's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Cerence close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Cerence's options.

Cerence Corporate Management

Katherine Roman	Corporate VP	Profile
Dennis Close	VP Treasurer	Profile
Nils Lenke	VP Applications	Profile
Bridget Collins	Chief Officer	Profile
Daniel Tempesta	Chief Officer	Profile
Sachin Sahney	Chief Officer	Profile

When determining whether Cerence offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cerence's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cerence Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cerence Stock: