Columbia Management Investment Ad.. recently announced the acquisition of new stake in Cerence Inc. (NASDAQ:CRNC). The institutional investor has increased its shareholding in the Technology company by 7.46% to 3.81 million shares with purchase of 0.26 million shares. This fresh investment now brings its stake to 10.45% valued currently at $151.25 million. In addition, The Vanguard Group, Inc. raised its holdings by 0.13 million to 3.24 million shares. And BlackRock Fund Advisors has lifted its position by 58.77% or 0.85 million shares – to 2.3 million shares.
With over 1.06 million Cerence Inc. (CRNC) shares trading Tuesday and a closing price of $55.70 on the day, the dollar volume was approximately $59.17 million. The shares have shown a positive weekly performance of 3.76% and its price on 09/01/20 gained nearly 4.70%. Currently, there are 36.51M common shares owned by the public and among those 36.10M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 8 analysts who have offered their price forecasts for CRNC have a consensus price objective of $54.81. The analysts have set the share’s price value over the next 12 months at a high of $62.50 and a low of $29.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Cerence Inc. stock is 2.00 for the next 12 months. The average price target is -1.62% below its last price level and a downside to the estimated low will see the stock lose -92.07% over that period. But an upside of 10.88% will see the stock hit the forecast high price target while mean target price for the stock is $58.00.
Insiders at the company have transacted a total of 46 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 30 of these insider trades were purchases, accounting for 36,799,868 shares. Insider sales of the common stock occurred on 16 occasions, with total insider shares sold totaling 36,442,148 shares.
The top 3 mutual fund holders in Cerence Inc. are Columbia Seligman Communications, ClearBridge Aggressive Growth Fun, and Vanguard Total Stock Market Index. Columbia Seligman Communications owns 2.31 million shares of the company’s stock, all valued at over $91.45 million. The company sold -0.34 million shares recently to bring their total holdings to about 6.32% of the shares outstanding. Vanguard Total Stock Market Index sold 1412.0 shares to bring its total holdings to over 0.98 million shares at a value of $38.81 million. Vanguard Total Stock Market Index now owns shares totaling to 2.68% of the shares outstanding.
Shares of Cerence Inc. (NASDAQ: CRNC) opened at $52.88, down -$0.32 from a prior closing price of $53.20. However, the script later closed the day at $55.70, up 4.70%. The company’s stock has a 5-day price change of 3.76% and 46.54% over the past three months. It has a 12-month low price of $11.39 and touched a high of $58.47 over the same period. Currently, 1.06 million shares have been traded, compared to an average intraday trading volume of 1.08 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 4.96%, 23.45%, and 97.76% respectively.
Institutional ownership of Cerence Inc. (NASDAQ: CRNC) shares accounts for 89.34% of the company’s 36.51M shares outstanding. Mutual fund holders own 49.62%, while other institutional holders and individual stakeholders account for 59.27% and 2.78% respectively.
It has a market capitalization of $1.95B. The stock’s trailing 12-month PE ratio is 29.82, while the earnings-per-share (ttm) stands at $1.87. The company has a PEG of 1.99 and a Quick Ratio of 1.20 with the debt-to-equity ratio at 0.29. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.96% over the week and 6.62% over the month.
Analysts forecast that Cerence Inc. (CRNC) will achieve an EPS of $0.34 for the current quarter, $0.34 for the next quarter and $1.5 for 2021. The lowest estimate earnings-per-share for the quarter is $0.32 while analysts give the company a high EPS estimate of $0.38. Comparatively, EPS for the current quarter was $0.34 a year ago. Earnings per share for the fiscal year are expected to decrease by -20.80%, and 10.10% over the next financial year.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 8 brokerage firm advisors rate Cerence Inc. (CRNC) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 6 Wall Street analysts polled rate the stock as a buy, while 0 of the 8 advise that investors “hold,” and 1 rated it as a “Sell.”
Looking at the support for the CRNC, a number of firms have released research notes about the stock. RBC Capital Mkts stated their Outperform rating for the stock in a research note on July 01, 2020, with the firm’s price target at $50. Jefferies coverage for the Cerence Inc. (CRNC) stock in a research note released on June 08, 2020 offered a Buy rating with a price target of $47. Raymond James was of a view on May 26, 2020 that the stock is Outperform, while Cowen gave the stock Outperform rating on May 12, 2020, issuing a price target of $28. Goldman on their part issued Sell rating on January 07, 2020.