What Analysts Are Saying About Cerence Stock

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Ratings for Cerence CRNC were provided by 6 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 0 5 0 0
Last 30D 0 0 4 0 0
1M Ago 0 0 1 0 0
2M Ago 1 0 0 0 0
3M Ago 0 0 0 0 0

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $11.58, along with a high estimate of $23.00 and a low estimate of $6.50. This current average has decreased by 42.1% from the previous average price target of $20.00.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Cerence among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Jeff Van Rhee Craig-Hallum Lowers Hold $8.00 $22.00
Daniel Ives Wedbush Lowers Neutral $9.00 $21.00
Colin Langan Wells Fargo Lowers Equal-Weight $6.50 $25.00
Luke Junk Baird Lowers Neutral $8.00 $15.00
Luke Junk Baird Lowers Neutral $15.00 $17.00
Quinn Bolton Needham Maintains Buy $23.00 -

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Cerence. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Cerence compared to the broader market.
  • Price Targets: Gaining insights, analysts provide estimates for the future value of Cerence's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Cerence's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Cerence analyst ratings.

If you are interested in following small-cap stock news and performance you can start by tracking it here.

Delving into Cerence's Background

Cerence Inc is a United States-based software company. It is involved in developing mobility-based solutions for drivers and their cars. The customers include all automobile original equipment manufacturers, or OEMs, or their tier 1 suppliers. The company's revenue is generated by selling software licenses and cloud-connected services. Geographically, it derives a majority of its revenue from the United States and also has a presence in Other Americas; Germany; Other Europe, the Middle East, Africa; Japan, and Other Asia-Pacific.

Cerence's Financial Performance

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Cerence displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 65.36%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Cerence's net margin excels beyond industry benchmarks, reaching 17.25%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 3.35%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Cerence's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.86%, the company showcases efficient use of assets and strong financial health.

Debt Management: Cerence's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.4.

The Significance of Analyst Ratings Explained

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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