Nuance Communications (NASDAQ:NUAN) Stock Price Up 5.5% After Better-Than-Expected Earnings

Nuance Communications Inc. (NASDAQ:NUAN)’s share price rose 5.5% on Thursday following a stronger than expected earnings report. The stock traded as high as $17.86 and last traded at $17.52, approximately 7,164,400 shares changed hands during mid-day trading. An increase of 250% from the average daily volume of 2,047,324 shares. The stock had previously closed at $16.60.

The software maker reported $0.34 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.28 by $0.06. The business had revenue of $471.97 million during the quarter, compared to analyst estimates of $486.13 million. Nuance Communications had a return on equity of 12.68% and a net margin of 11.83%. The company’s revenue was down 2.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.38 earnings per share.

NUAN has been the subject of several research analyst reports. Zacks Investment Research lowered Nuance Communications from a “buy” rating to a “hold” rating in a report on Thursday, October 3rd. ValuEngine lowered Nuance Communications from a “buy” rating to a “hold” rating in a report on Wednesday, November 20th. Wedbush initiated coverage on Nuance Communications in a report on Friday, September 27th. They issued an “outperform” rating for the company. Barclays cut their price objective on Nuance Communications from $20.00 to $17.00 and set an “overweight” rating for the company in a report on Monday, October 7th. Finally, TheStreet upgraded Nuance Communications from a “c+” rating to a “b” rating in a report on Wednesday, November 20th. One analyst has rated the stock with a sell rating, three have assigned a hold rating and two have issued a buy rating to the stock. The stock has a consensus rating of “Hold” and a consensus target price of $18.25.

In other news, EVP Stefan Ortmanns sold 1,491 shares of the company’s stock in a transaction on Monday, September 9th. The stock was sold at an average price of $17.50, for a total transaction of $26,092.50. Following the completion of the sale, the executive vice president now directly owns 186,041 shares of the company’s stock, valued at $3,255,717.50. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Robert Weideman sold 6,000 shares of the company’s stock in a transaction on Thursday, September 5th. The shares were sold at an average price of $17.00, for a total value of $102,000.00. Following the sale, the executive vice president now directly owns 404,521 shares of the company’s stock, valued at $6,876,857. The disclosure for this sale can be found here. In the last 90 days, insiders sold 683,151 shares of company stock valued at $11,609,116. Insiders own 0.68% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. lifted its holdings in shares of Nuance Communications by 0.8% during the second quarter. Vanguard Group Inc. now owns 26,328,658 shares of the software maker’s stock valued at $420,468,000 after purchasing an additional 204,438 shares during the last quarter. Victory Capital Management Inc. lifted its holdings in shares of Nuance Communications by 10.4% during the second quarter. Victory Capital Management Inc. now owns 16,946,256 shares of the software maker’s stock valued at $270,632,000 after purchasing an additional 1,599,212 shares during the last quarter. RGM Capital LLC lifted its holdings in shares of Nuance Communications by 5.4% during the second quarter. RGM Capital LLC now owns 6,016,877 shares of the software maker’s stock valued at $96,090,000 after purchasing an additional 306,700 shares during the last quarter. Handelsbanken Fonder AB lifted its holdings in shares of Nuance Communications by 154.4% during the third quarter. Handelsbanken Fonder AB now owns 2,543,571 shares of the software maker’s stock valued at $41,486,000 after purchasing an additional 1,543,571 shares during the last quarter. Finally, AQR Capital Management LLC lifted its holdings in shares of Nuance Communications by 35.4% during the second quarter. AQR Capital Management LLC now owns 1,912,327 shares of the software maker’s stock valued at $30,540,000 after purchasing an additional 499,879 shares during the last quarter. 88.51% of the stock is owned by institutional investors and hedge funds.

The firm has a market capitalization of $5.00 billion, a PE ratio of 23.36, a P/E/G ratio of 4.15 and a beta of 0.94. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.77 and a quick ratio of 1.77. The firm has a fifty day moving average price of $15.86 and a 200 day moving average price of $16.56.

About Nuance Communications (NASDAQ:NUAN)

Nuance Communications (NASDAQ: NUAN) is the pioneer and leader in conversational AI innovations that bring intelligence to everyday work and life. The company delivers solutions that understand, analyze, and respond to people – amplifying human intelligence to increase productivity and security. With decades of domain and AI expertise, Nuance works with thousands of organizations globally across healthcare, financial services, telecommunications, government, and retail – to create stronger relationships and better experiences for their customers and workforce.

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