Jennifer Salinas, Executive Vice President and Chief Administrative Officer at Cerence Inc . (NASDAQ:CRNC), recently sold shares of the company valued at approximately $254,011. The transactions occurred over two days, with shares sold at prices ranging from $6.67 to $7.21.
On November 25, Salinas sold 8,976 shares at $7.21 per share, a transaction required to cover tax withholding obligations linked to the vesting of performance stock units (PSUs). This transaction was part of a "sell to cover" mandate under Cerence's equity incentive plans and not a discretionary trade by Salinas.
The following day, November 26, she sold an additional 28,380 shares at $6.67 per share. This sale was executed under a Rule 10b5-1 trading plan that Salinas had established on December 12, 2023.
Following these transactions, Salinas holds 489,067 shares of Cerence common stock.
In other recent news, Cerence Inc. has been making significant strides in its financial performance and strategic direction. The company's recent earnings call revealed a strategic shift towards generative AI, with a goal of returning to profitability by fiscal year 2025. Cerence reported Q4 revenue of $54.8 million, surpassing guidance, and an adjusted EBITDA of negative $1.9 million, which was better than anticipated. The company also achieved full-year revenue of $331.5 million and has implemented cost reductions aimed at saving $35-40 million.
Simultaneously, a Craig-Hallum analyst maintained a Hold rating on Cerence's stock, while raising the price target to $6.00, up from the previous $3.50. The adjustment was a response to Cerence's financial performance, which showed revenue at the high end of expectations and EBITDA surpassing forecasts. The company's forward guidance also significantly exceeded market expectations. However, the company's balance sheet presents potential worries due to a cash position of $127 million against a debt of $282 million, with $87 million of that debt now classified as current.
These recent developments highlight Cerence's commitment to innovation and its vision of leading the automotive AI industry. The company is not only focusing on financial growth but also on the execution of its generative AI strategy, which is expected to create more natural and customized voice interaction experiences for automotive manufacturers.
InvestingPro Insights
The recent insider selling by Jennifer Salinas at Cerence Inc. (NASDAQ:CRNC) 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 total return. This short-term surge is part of a broader trend, as the stock has seen a 141.78% return over the past month and a 107.04% return over the last three months.
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% price total return for the past 12 months. This volatility is reflected in an InvestingPro Tip, which indicates that the stock generally trades with high price volatility.
From a financial perspective, Cerence's revenue for the last twelve months as of Q4 2024 stood at $331.5 million, with a revenue growth of 12.57%. However, an InvestingPro Tip suggests that analysts anticipate a sales decline in the current year, which could be a factor to watch for investors considering the stock's recent price movements.
For those seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Cerence, providing deeper insights into the company's financial health and market position.
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