The stock of Cerence Inc. (NASDAQ:CRNC) is now priced at $55.7 and the shares are 2.5 points up or 4.7% higher compared to its previous closing price of $53.2. The stock had 1.063 million contracts set over the past session. CRNC shares’ daily volume is compared to its average trading volume at 1.085 million shares. However, it has a float of 36.1 million and although its performance was 3.76% over the week, it’s one to watch. Analysts have given the CRNC stock a yearly average price target of $54.81 per share. It means the stock’s downside potential is -1.6% with the CRNC share price recently placing at $52.87 to $56.68. However, some brokerage firms have priced the stock below the average, including one that has called $29.
The shorts are running away from the Cerence Inc. stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the CRNC shares have declined. Short interest in the stock represents just 15.4% of its float, but the volume has dropped by -259882. The volume of shorted shares dropped to 5.558 million from 5.818 million shares over the last two weeks. The average intraday trading volume has been 1.06 million shares, which means that days to cover moved to roughly 5.244462.
Looking at current readings, Cerence Inc.’s two-week RSI is 61.68. This suggests that the stock is neutral at the moment and that CRNC shares’ price movement remains stable. The stochastic readings are equally revealing at 56.51% meaning the CRNC share price is currently in neutral territory.
The technical chart shows that the CRNC stock will likely settle at between $57.3 and $58.89 per share. However, if the stock dips below $53.49, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $51.27.
Currently, the stock is trading in the green of MACD, with a reading of 0.47. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Maxim Group assigned CRNC a rating of Outperform in their intiating review released on July 01. Jefferies analysts see the stock as a Buy with a target price of $47 in a flash note released to investors on June 08 initiating covering the stock. Raymond James seeing the stock struggling downgraded it from Strong Buy to Outperform on May 26.
The average rating for the CRNC equity is 2 and is currently gathering a bullish momentum. Of 8 analysts tracking Cerence Inc. polled by Reuters, 0 rated CRNC as a hold. The remaining 8 analysts were split evenly. However, the split wasn’t equal as a majority (7) rated it as a buy or strong buy. 1 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the CRNC stock price is 37.01X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 29.8 below the group’s average of 6367.1. Cerence Inc. has its P/E ratio at 2.2, which means that the stock is currently trading at a discount relative to the 11.6 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Cerence Inc. (NASDAQ:CRNC) will decrease by about -99.89%, which will see them reach $79.37 million. The company’s full-year revenues are, however, expected to increase by about 2.63%, up from $308 million to $316 million. CRNC’s expected adjusted earnings should surge almost 0% to end up at $0.34 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -20.81% to record $1.37/share.