Cerence Inc.’s (NASDAQ:CRNC) 29% Dip In Price Shows Sentiment Is Matching Revenues
Cerence Inc. (NASDAQ:CRNC) shares have retraced a considerable 29% in the last month, reversing a fair amount of their solid recent performance. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 27% in that time.
Since its price has dipped substantially, Cerence may look like a strong buying opportunity at present with its price-to-sales (or “P/S”) ratio of 1.8x, considering almost half of all companies in the Software industry in the United States have P/S ratios greater than 4.7x and even P/S higher than 10x aren’t out of the ordinary. Although, it’s not wise to just take the P/S at face value as there may be an explanation why it’s so limited.
