Nuance Communications, Inc. (NUAN) Stock: Here’s Why It’s Gaining In Value


Nuance Communications, Inc. (NUAN) is trending up in the market in today’s trading session. The company, focused in the tech sector, is presently priced at $16.50 after heading up 8.66% so far today. As it relates to technology companies, there are a number of aspects that have the ability to cause movement in the market. News is one of the most common reasons for movement. Here are the most recent headlines centered around NUAN:

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Aug-07-19 09:05PM Nuance Communications (NUAN) Q3 Earnings and Revenues Top Estimates
04:01PM Nuance Announces Third Quarter 2019 Results
08:31AM Earnings Outlook For Nuance Communications
08:00AM Nuance Identifies Board of Directors for Cerence Inc., its Automotive Spin-Off; Arun Sarin, Former CEO of Vodafone, to be Appointed Chairman
Aug-05-19 08:00AM Nuance Unveils Name and Brand Identity for its Automotive Spin-Off: Cerence Inc.

However, when making an investing decision, investors should focus on much more than just news, especially in the ever evolving technology industry. Here’s what’s happening in regard to Nuance Communications, Inc..

Trends That We’ve Seen From NUAN

While a move toward the top in a single session, like the gain that we’re seeing from Nuance Communications, Inc. might make some investors excited, a single session gain by itself shouldn’t be the basis of a decision to, or not to, invest in a company. It is always smart to look at trends experienced by the stock for a period longer than a single trading day. In the case of NUAN, below are the movements that investors have experienced:

  • Past Seven Days – Over the past 7 days, NUAN has produced a change in value that amounts to -8.71%.
  • Monthly – The monthly ROI from Nuance Communications, Inc. has been -5.30%.
  • Past 3 Months – Over the last quarter, the company has generated a ROI of -9.31%
  • Past Six Months – Over the past 6 months, we’ve seen a performance of -7.21% from the company.
  • YTD – Since the open of this year NUAN has resulted in a return of 14.81%.
  • Annually – Finally, over the past year, investors have seen performance that works out to -0.26% out of NUAN. Over this period of time, the stock has traded at a high of -9.11% and a low price of 30.32%.

Rations That Investors Should Consider

Looking at a few key ratios associated with a stock can provide investors an understanding of how dangerous and/or potentially profitable a an investment option might be. Below are some of the important ratios to consider when looking at NUAN.

Short Ratio – The short ratio is a measure of short interest. As the ratio heads up, it shows that more investors believe that the value of the stock is going to go down. Across the sector, strong technology stocks tend to carry a lower short ratio. On the other hand, we also see a lot of short squeezes in the sector. Nonetheless, with regard to Nuance Communications, Inc., the stock’s short ratio comes to 4.54.

Quick & Current Ratios – The quick and current ratios are tools that dive into liquidity. Essentially, they measure the company’s abilities to cover its debts when they mature using current assets or quick assets. In the technology sector, companies rely on the continuation of investor support as they work to bring new technologies to market, the quick and current ratios can look bad. However, quite a few gems in the tech sector do have great current and quick ratios. When it comes to NUAN, the quick and current ratios add up to 1.80 and 1.80 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the current book value of assets that are owned by the company. as it relates to Nuance Communications, Inc., the book to share value ratio equates to 7.15.

Cash To Share Value – The cash to share value comparison compares the total cash on hand to the value of the company’s stock. In terms of NUAN, the cash to share value ratio comes to 2.09.

Show Me The Big Money

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in NUAN, here’s what we’re seeing:

  • Institutions – As it stands now, institutional investors own 92.20% of Nuance Communications, Inc.. However, it’s worth considering that the ownership held by institutions has seen a move of 1.04% throughout the past quarter.
  • Insiders – When it comes to insiders, those close to the situation currently hold 0.80% of Nuance Communications, Inc.. Insider ownership of the company has changed by -9.38% over the last 3 months.

Analyst Opinions With Regard To Nuance Communications, Inc.

While it’s rarely a good idea to blindly follow the opinions of analysts, it is a good idea to use their analysis to validate your own due diligence before making an investment decision in the technology space. Here are the recent moves that we’ve seen from analysts as it relates to NUAN.

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Jan-15-19 Downgrade Morgan Stanley Overweight → Equal-Weight
Oct-19-18 Initiated Wedbush Outperform $22
Aug-09-18 Reiterated Stifel Hold $15 → $17
Aug-09-18 Downgrade Standpoint Research Buy → Hold
May-10-18 Reiterated Stifel Hold $18 → $15

What We’ve Seen In earnings results

What have ween seen from NUAN in terms of financial results?Here’s the information:

  • Analyst Expectations – As it stands at the moment, Wall Street analysts are expecting that NUAN will create EPS of 1.25, with 0.28 to be reported in the earnings announcement for the current quarter. Although this data isn’t based on earnings, because we’re chatting on the topic of analysts, Nuance Communications, Inc. is presently graded as a 2.00 when rated on a scale from 1 to 5 on which 1 is the worst average analyst rating and 5 is the best.
  • 5-Year Sales – In the past 5 years, Nuance Communications, Inc. has generated a movement in sales volume that works out to 2.00%. Earnings through the past 5 years have experienced movement in the amount of -19.30%.
  • Q/Q – In terms of quarter over quarter earnings data, or Q/Q data as it is often referred to as in the human world, the company has created a change in earnings that comes to a total of 85.30%. Nuance Communications, Inc. has also seen movement in regard to sales volume that adds up to -12.10%.

What You Need To Know About Share Counts

Investors and traders tend to like to know the total numbers of shares both outstanding and available. In terms of Nuance Communications, Inc., currently there are 297.52M and there is a float of 285.54M. This means that out of the total of 297.52M shares of NUAN in existence today, 285.54M are able to trade hands on the public market.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to NUAN, the short percent of the float is 2.88%.

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Do You Care To Teach An Artificial Intelligence?

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