Nuance Communications Inc. (NASDAQ:NUAN) shares traded lower over the last trading session, losing -3.31% on 12/14/20. The shares fell to a low of $41.99 before closing at $42.20. Intraday shares traded counted 3.87 million, which was -7.33% lower than its 30-day average trading volume of 3.61M. NUAN’s previous close was $43.65 while the outstanding shares total 282.55M. The firm has a beta of 1.23, a 12-month trailing P/E ratio of 430.61, and a growth ratio of 84.43. The stock’s Relative Strength Index (RSI) is 60.93, with weekly volatility at 3.15% and ATR at 1.51. The NUAN stock’s 52-week price range has touched low of $13.51 and a $43.95 high.
Investors have identified the Software – Application company Nuance Communications Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $11.68 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Nuance Communications Inc. (NUAN) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For NUAN, the company has in raw cash 301.23 million on their books with 432.21 million currently as liabilities. How the trend is over time is what investors should be concerned about. In terms of their assets, the company currently has 735.99 million total, with 986.14 million as their total liabilities.
NUAN were able to record 193.27 million as free cash flow during the Q4 2020 quarter of the year, this saw their quarterly net cash flow reduce by -259.73 million. In cash movements, the company had a total of 254.56 million as operating cash flow.
Potential earnings growth for Nuance Communications Inc. (NUAN)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q4 2020 quarter of the year, Nuance Communications Inc. recorded a total of 352.93 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -9.82% coming in sequential stages and their sales for the Q4 2020 quarter increasing by 4.12%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 153.28 million trying to sell their products during the last quarter, with the result yielding a gross income of 199.66 million. This allows shareholders to hold on to 282.55M with the recently reported earning now reading -0.11 cents per share. This is a figure that compared to analyst’s prediction for their Q4 2020 (0.06 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.55 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on NUAN sounds very interesting.
Is the stock of NUAN attractive?
In related news, EVP & GM, Healthcare Division, Nole Diana L sold 1,836 shares of the company’s stock in a transaction that recorded on Dec 08. The sale was performed at an average price of 42.04, for a total value of 77,185. As the sale deal closes, the EVP & Chief Technology Officer, Petro Joseph Carl now sold 59,523 shares of the company’s stock, valued at 2,500,811. Also, Chief Executive Officer, Benjamin Mark D sold 117,946 shares of the company’s stock in a deal that was recorded on Nov 24. The shares were price at an average price of 41.67 per share, with a total market value of 4,914,409. Following this completion of acquisition, the Senior Vice President and Chie, Giterman Arthur G. now holds 1,489 shares of the company’s stock, valued at 63,283. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.90%.
7 out of 8 analysts covering the stock have rated it a Buy, while 1 have maintained a Hold recommendation on Nuance Communications Inc.. 0 analysts has assigned a Sell rating on the NUAN stock. The 12-month mean consensus price target for the company’s shares has been set at $43.25.