Guggenheim raised the price target for the Nuance Communications Inc. (NASDAQ:NUAN) stock from “a Neutral” to “a Buy”. The rating was released on November 30, 2020. The research report from SVB Leerink has initiated the stock to Outperform, with a price target set at $31. In their research brief published January 13, 2020, Morgan Stanley analysts upgraded the Nuance Communications Inc. stock from Equal-Weight to Overweight with a price target of $23.
Historical Earnings Surprises and Revenue Forecasts
Profit is the most critical financial performance measure. Every investor in a business is looking forward to the earnings report as stock price to increase when earnings exceed market expectations and progressively decrease when earnings do not meet expectations. The firm reported an earnings per share (EPS) of $0.2 during the last quarter as opposed to a consensus estimate of $0.17, which indicates the company beat its estimate by $0.03, which implies that the company surprised the market by 17.60%. It appears that the average earnings per share estimate for the current quarter (ending in Jun 2021) is $0.17. This is an average of 4 analysts’ earnings, where the high earnings per share estimate is $0.18 and the low earnings per share estimate is $0.17. According to 3 analyst estimates, an average revenue estimate of $333.53M is projected for the current quarter with a high revenue estimate of $334.4M and a low estimate of $332.2M.
The latest trade, Performances and Moving Averages give us the following Picture
The share price of Nuance Communications Inc. (NASDAQ:NUAN) dipped 0.00% to close Wednesday’s market session at $54.90, lower as compared to yesterday’s close. The stock price fluctuated between $54.83 and $54.98 throughout the trading session with the volume trading being 4260703 shares, which represented a significant variation when compared to the three months average volume of 8.80 million shares. The firm’s stock price fluctuated 3.35% within the last five trades and 4.12% within the last 30 trades, which was a significant change from the beginning of this year. Despite the fact that the share price increased 32.37% in the last 6 months and 29.21% was added to its value over the previous 3 months. NUAN stock is trading at a margin of 3.28%, 6.65% and 28.37% apart from the 20-Day, 50-Day and 200-Day Simple Moving Average prices.
As of the close of trading, NUAN deals in the Technology domain. The stock is trading -0.36 percent below its 52-week high and 149.32 percent above its 52-week low. For example, looking both at the price and the high and low measurements of 52 weeks will give you a clearer picture of the direction the price is heading. The firm’s Weighted Alpha is 127.21. A positive weighted alpha indicates the firm has done well over the course of the year, whereas one below 0 indicates that the firm has done poorly.
What Does Nuance Communications Inc.’s Profitability and Valuation Ratios Tell Us About the Stock?
With regard to the profitability of the company, the operating margin is currently at 7.70 percent and the profit margin is 0.30 percent, and the company has reported a gross margin of 59.80 percent. The profit margin, also known as the revenue ratio or gross profit ratio, is an efficiency figure used to estimate the business’s profitability by comparing net income and sales. The higher the number, the more profits are generated for the company and vice versa.
The stock’s market cap achieved a total value of $15.33 billion as of the last trading session. Market capitalization is the total value of all outstanding shares of a corporation and it is used to measure a company’s market value. The price-to-earnings ratio for Nuance Communications Inc. (NASDAQ:NUAN) is 1247.73. The price-to-earnings ratio is a method of assessing corporate values by comparing them to their per-share profit. Forward P/E stands at 64.59. Forward price-to-earnings is calculated using predicted earnings for the next financial year’s P/E determination. The stock has achieved an effective Price-to-Sales Ratio of 11.07 that mirrors the cost to be found for sales by the market. The firm managed a Price-to-Book ratio of 12.80, which equates the market value of a stock with its book value.
Is Insider Trading a Real Thing?
WEIDEMAN ROBERT, the EVP & GM, Enterprise Division at Nuance Communications Inc. (NUAN) has sold 11,182 shares of firm on Jun 07 at a price of $55.00 against the total amount of $0.62 million. In another inside trade, Nole Diana L, EVP & GM, Healthcare Division of Nuance Communications Inc. (NASDAQ:NUAN) sold 20,978 shares of the firm on Jun 02 for a total worth of $1.12 million at a price of $53.21. An inside trade which took place on May 17, Chief Executive Officer of Nuance Communications Inc. Benjamin Mark D sold 20,828 shares of firm against total price of $1.09 million at the cost of $52.55 per share.