Long Position on CRNC @ $116.25 on 6/14/2021 (Fundamentals)

Cerence Inc. (CRNC) provides AI-powered assistants and innovations for connected and autonomous vehicles.

It offers edge software components; cloud-connected components; toolkits; applications; and virtual assistant coexistence and professional services.

The company also provides conversational artificial intelligence, including voice recognition, natural language understanding, and artificial intelligence services. 

Cerence reported 2nd Quarter March 2021 earnings of $0.64 per share on revenue of $98.7 million. The consensus earnings estimate was $0.52 per share on revenue of $93.4 million. Revenue grew 14.1% on a year-over-year basis.

The company said it expects third quarter revenue of $94.0 million to $97.0 million and now expects fiscal 2021 revenue of $380.0 million to $390.0 million. The company's previous guidance was fiscal 2021 revenue of $370.0 million to $380.0 million. The current consensus revenue estimate is $95.34 million for the quarter ending June 30, 2021 and revenue of $380.1 million for the year ending September 30, 2021.

As the leader in mover mobility and after a deal with Sirius XM to enhance voice-powered entertainment for drivers, this stock should continue to head higher.

Entry Point: $116.25

Stop Loss: $110.50

Trading Range: $34.23 - $139.00

Target Price: $127.85

Updates

7/2/2021 9:35:27 AM

CRNC closed at $120.40

Position closed on 7/2/2021 at price of $121.25 with a 4.30% gain in 18 days.

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