Cerence Inc (NASDAQ:CRNC) director Thomas L. Beaudoin engaged in recent stock transactions, according to a new SEC filing. Beaudoin acquired shares through the company's Employee Stock Purchase Plan and also sold a portion of his holdings under a pre-arranged trading plan.
On February 15, 2024, Beaudoin purchased 1,005 shares of Cerence Inc common stock at $13.58 per share, totaling approximately $13,647. The purchase was made as part of the company's Employee Stock Purchase Plan, which allows employees to buy shares at a discounted rate.
Following this acquisition, Beaudoin executed a sale of 5,000 shares on March 21, 2024, at an average price of $14.9852 per share, resulting in a total sale value of approximately $74,926. The sale was conducted under a Rule 10b5-1 trading plan, which was adopted on December 21, 2023. Such plans allow company insiders to establish pre-arranged plans to buy or sell shares at a predetermined time to avoid accusations of insider trading.
After the reported transactions, Beaudoin's direct ownership in Cerence Inc stands at 257,921 shares. Investors often monitor insider buying and selling as it can provide insights into a company's financial health and future prospects. However, these transactions may not always be indicative of future price movement and should be evaluated as part of a broader investment strategy.
Cerence Inc specializes in creating software for the automotive industry, including voice recognition and artificial intelligence technologies that enable voice control in vehicles. The company's stock performance and insider transactions are closely watched by investors interested in the technology sector and AI innovations.
InvestingPro Insights
Cerence Inc (NASDAQ:CRNC), a leader in AI-driven voice recognition software for the automotive industry, has been navigating a challenging market environment. Despite recent insider transactions that might signal confidence, the company's stock has experienced significant volatility. According to InvestingPro Tips, Cerence's stock price movements are quite volatile, which aligns with the observed insider trading activity. Additionally, the company's stock is trading near its 52-week low, which may present a potential entry point for investors.
From a financial perspective, InvestingPro Data reveals some key metrics that investors should consider. Cerence's market capitalization currently stands at $610.95 million. The company's revenue for the last twelve months as of Q1 2024 is $349.15 million, with a notable revenue growth of 10.1%. The gross profit margin for the same period is a strong 72.82%, indicating the company's ability to maintain profitability on its products and services.
While Cerence has not been profitable over the past twelve months, analysts are predicting that the company will become profitable this year, according to another InvestingPro Tip. This forecasted turnaround is crucial for potential investors to consider when evaluating the company's future prospects.
For investors looking to delve deeper into Cerence's financial health and future outlook, there are additional InvestingPro Tips available. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these insights, which currently include seven more tips for Cerence Inc.
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