In a recent transaction disclosed by Cerence Inc . (NASDAQ:CRNC), Thomas L. Beaudoin, a director at the company, sold 12,088 shares of common stock. The sale, which took place on November 25, 2024, was executed at a price of $7.21 per share, resulting in a total transaction value of $87,154.
This transaction was part of a "sell to cover" arrangement, mandated by Cerence's equity incentive plans to satisfy tax withholding obligations related to the vesting of performance stock units (PSUs). Following this transaction, Beaudoin holds 188,966 shares directly.
In other recent news, Cerence Inc. has been in the spotlight with significant developments. The company recently reported Q4 revenue of $54.8 million and an adjusted EBITDA of negative $1.9 million, surpassing expectations. The full-year revenue reached $331.5 million, and cost reductions aimed at saving $35-40 million have been implemented, as detailed by CEO Brian Krzanich during the Q4 2024 earnings call.
The company also announced a strategic shift towards generative AI, aiming to achieve profitability by fiscal year 2025. This move includes the integration of large language models into automotive voice interactions, with ten customer wins and the launch of six generative AI solutions.
In other developments, a Craig-Hallum analyst maintained a Hold rating on Cerence Inc., raising the price target to $6.00 from the previous $3.50. The adjustment followed Cerence's financial performance and forward guidance, which notably exceeded market expectations. However, the analyst highlighted potential concerns related to the company's balance sheet and the need for substantial top-line growth.
These are the recent developments for Cerence, which is known for integrating AI into automotive systems and is now exploring potential markets beyond automotive, such as wearable technology and home entertainment.
InvestingPro Insights
The recent stock sale by Cerence Inc. director Thomas L. Beaudoin comes at a time when the company's stock has shown significant volatility and mixed performance. According to InvestingPro data, Cerence has experienced a strong return over the last week, with a remarkable 137.71% price increase. This short-term surge is part of a broader trend, as the stock has also seen substantial gains of 141.78% and 107.04% over the past one and three months, respectively.
Despite these recent gains, it's important to note that Cerence's stock price has fallen significantly over the last year, with a -59.17% total return for the 12-month period. This volatility is consistent with an InvestingPro Tip indicating that the stock generally trades with high price volatility.
Another relevant InvestingPro Tip suggests that analysts anticipate a sales decline in the current year. This projection aligns with the company's recent quarterly revenue growth of -32.14%, which may be a concern for investors considering the stock's recent price movements.
For those seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Cerence Inc., providing a deeper understanding of the company's financial health and market position. These insights can be particularly valuable given the stock's recent performance and the company's evolving business landscape.
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