Cerence Inc . (NASDAQ:) Director Thomas L. Beaudoin has sold a total of 5,000 shares of the company at a price of $3.34 per share, for a total transaction value of $16,700. The sale, which took place on September 3, 2024, was reported in a new filing with the Securities and Exchange Commission (SEC).
The transaction was carried out in accordance with a regulated trading plan, known as a Rule 10b5-1 trading plan, which Beaudoin had adopted on December 21, 2023. The plan allows company insiders to sell a predetermined number of shares at a predetermined time to avoid charges mentioned. trade in nonpublic information.
After the sale, Beaudoin’s remaining shares in Cerence Inc. consisting of 222,457 shares. The company, which specializes in prepackaged software services, has seen its stock trade on NASDAQ under the ticker symbol CRNC.
Investors often monitor insider transactions because they can provide insight into an insider’s view of a company’s financial health and future prospects. However, it is important to note that these transactions do not necessarily reflect trends and may be influenced by various personal financial considerations.
The filing was signed on behalf of Thomas L. Beaudoin by Jennifer Salinas, who is his attorney.
In other recent news, Cerence Inc. reported a 14% increase in the fiscal year 2024 third quarter with revenues reaching $70.5 million. Despite a significant goodwill impairment charge of approximately $357 million affecting GAAP profit, the company’s non-GAAP profit exceeded its own projections with adjusted EBITDA up to $12.5 million. TD Cowen, meanwhile, adjusted its outlook on Cerence by reducing its price target from $12.00 to $10.00, while maintaining a Buy rating. This follows Cerence’s announcement of a significant restructuring program that is expected to save between $35 million and $40 million, focusing on consistent EBITDA and cash flow generation. The company’s management team will now focus on the company’s financial obligations, especially the debt of $87 million at 3% due in June 2025. This is one of the new developments for Cerence, which also expects net annual cost savings of between $35-40 million in the fiscal year that will come. The company’s full-year revenue projection is between $321 million and $327 million, with Q4 revenue estimated at $44-50 million. Looking ahead, Cerence expects to see a decline in revenue for fiscal year 2025, when gross profit forecasts improve.
InvestingPro Insights
Amid the news of Cerence Inc.’s stock sale. Director Thomas L. Beaudoin, investors evaluate the company’s financial health and potential for future growth. According to InvestingPro data, Cerence has a market capitalization of $127.5 million and a revenue growth of 31.49% in the last twelve months in Q3 2024, indicating a strong increase in sales. Despite not paying a dividend, Cerence’s valuation reflects strong free cash flow results, which could be an attractive feature for investors looking for a company with cash-generating potential.
Investors should also be aware of the stock’s volatility, as demonstrated by its significant price fluctuations over the past year. InvestingPro Tips highlights that Cerence’s share price has fallen significantly over the past year, with a total one-year price increase of -88.2%. However, on a positive note, the company has generated strong profits over the past month, with a 13.01% increase in total price. This could indicate that the company’s stock is starting to recover, even though the overall trend has been down.
For those considering investing in Cerence, it should be noted that analysts predict the company will be profitable this year, which may signal a change in financial performance. Additionally, the stock price/book ratio is at 0.86, which potentially indicates that the stock is undervalued relative to book value. For more detailed analysis and additional InvestingPro Tips, investors can visit https://www.investing.com/pro/CRNC, where several other tips are available to inform your investment decisions.
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