CRNC Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Cerence Inc (CRNC) is not a strong buy for a beginner investor with a long-term strategy at this time. The stock shows weak technical indicators, limited positive catalysts, and declining financial performance. While hedge funds are buying, insider selling is significantly high, indicating mixed sentiment. The lack of recent AI Stock Picker or SwingMax signals further reduces the attractiveness of this stock for immediate investment.
The MACD histogram is -0.364, below 0, and negatively contracting, indicating bearish momentum. RSI is at 25.761, which is neutral but leaning towards oversold territory. Moving averages are converging, showing no clear trend. Key support is at 7.063, and the stock is trading close to this level, with resistance at 9.091.
Hedge funds are increasing their buying activity, with a 348.02% increase in the last quarter. Revenue grew by 126.10% YoY in Q1 2026, and gross margin improved by 35.61% YoY.
Insider selling has surged by 8776.61% over the last month, suggesting a lack of confidence from insiders. Net income dropped by 78.43% YoY, and EPS fell by 78.95% YoY. Analysts have lowered price targets, citing limited growth and profitability. No recent news or congress trading data provides additional support for the stock.
In Q1 2026, revenue increased significantly by 126.10% YoY to $115.08M, but net income fell to -$5.24M, down 78.43% YoY. EPS dropped to -$0.12, down 78.95% YoY. Gross margin improved to 86.64%, up 35.61% YoY, but overall profitability remains weak.
Analysts have a neutral to hold stance on CRNC. Goldman Sachs recently lowered its price target to $8 from $11, citing limited growth and profitability despite progress in agentic AI. TD Cowen also reduced its price target to $12 from $13, highlighting noisy financial outcomes and potential EBITDA shortfalls for the rest of FY26.
