Nuance stock: buy or sell?

NUAN stock price: $17.08 2.21% At close on August 19th, 2019

Updated on:
August 19th, 2019

2

Nuance closed today at $17.08 and jumped an excellent 2.21%. On August 8th NUAN climbed an amazing 8.49%.

Nuance Communications, Inc. provides voice recognition and natural language understanding solutions worldwide. It operates through four segments: Healthcare, Mobile, Enterprise, and Imaging.

Should I buy Nuance stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to choose your own trading plan that fits your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Nuance Communications stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean NUAN will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Nuance Communications stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we gathered 3 ratings published for NUAN stock in the last 30 days.

Is NUAN a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-24Wedbushn/aBuy
2019-2-8Wedbushn/aBuy
2019-1-15Morgan StanleyOverweightEqual Weight

Nuance stock analysis

Daily outlook

Nuance closed today at $17.08 and jumped an excellent 2.21%.

Nuance shares jumped 2.21% to $17.08 today. Since price and SMA200d lines crossed up on August 8th, NUAN climbed $1.89 (12.44%). Since May when SMA100d and SMA200d crossed up, NUAN price slipped $-0.91 per share (-5.06%). NUAN broke out again over $16.80 after a 3.04% correction started on Tuesday.

NUAN stock chart (daily)

Weekly outlook

Nuance shares grew 2.21% this week, ending at $17.08. This week was the third green week in a row.

Early August NUAN price bounced up over the SMA of 40 weeks that acted as support stopping new slides. Since SMA20w and SMA40w crossed up by mid May, NUAN price slid a -5.37%.

NUAN stock chart (weekly)

Nuance stock price history

Nuance IPO was on December 11th, 1995 at $20.00 per share1. Since then, NUAN stock declined a -14.60%, with a yearly average of -0.60%.

1: Adjusted price after possible price splits or reverse-splits.

Nuance stock historical price chart

NUAN stock reached 52-week highs on May at $18.16, and all-time highs 2012-02-09 with a price of 31.15.

Nuance stock price target is $20.30

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 3 price predictions for Nuance Communications stock:
NUAN stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-24WedbushReiteratesn/a$22.00-
2019-2-8WedbushReiteratesn/a$22.00-
2019-1-15Morgan StanleyDowngrades$19.00$17.00-10.5%
(in average)$19.00$20.307.0%
Moving in a range from $22.00 and $17.00, the price forecast for Nuance Communications stock is $20.30. In average, analysts' outlook on NUAN price target is positive, improving the target by a 7.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Nuance presented exceptional results for 2018-Q4 on February. Nuance Communications skyrocketed Earnings per Share (EPS) by 41.20%, beating experts of $0.17. Nuance Communications posted $0.24.
NUAN earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a-0.06n/a
2017-Q2-n/a-0.05n/a
2017-Q32017-11-280.150.233.3%
2017-Q42018-02-080.260.273.8%
2018-Q12018-05-090.180.17-5.6%
2018-Q22018-08-080.160.176.3%
2018-Q32018-11-190.220.2722.7%
2018-Q42019-02-070.170.2441.2%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw a decent gain of 5.79% to $2,051.66 million dollars. By contrast, its earnings margin (compared to sales) remained stable to -7.80%, that is $-159.93 million.

To have an updated picture of the financial situation of Nuance Communications, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2018-Q4 that can be compared to 2018 fiscal year results. Annual Nuance Communications TTM sales up to December 2018 were $2,043.67 and earnings were $-194.07 million dollars. If we compare this TTM figures with the last reported annuality, we can review Nuance business evolution since September 2018: Annual sales up to December, compared to lastest yearly report, stayed steady a neutral -0.39%. Instead, profit margin (net income/sales) declined at -7.80%.

NUAN annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$1,860 M-$-115.24 M-6.2%-
2014$1,923 M3.41%$-150.34 M-7.8%30.46%
2015$1,931 M0.40%$-115.01 M-6.0%-23.50%
2016$1,949 M0.92%$-12.46 M-0.6%-89.17%
2017$1,939 M-0.49%$-151.00 M-7.8%1,112.04%
2018$2,052 M5.79%$-159.93 M-7.8%5.92%
TTM $2,044 M-0.39%$-194.07 M-9.5%21.35%

Quarterly financial results

Nuance Communications posted $493.65 million in sales for 2018-Q4, a -7.37% decline compared to previous quarter. Reported quarter income marked $19.09 million with a profit margin of 3.87%. Profit margin boosted a 10.45% compared to previous quarter when profit margin was -6.58%. When comparing revenues to same quarter last year, Nuance sales marked a lame drop down and decreased a -1.59%.
NUAN quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$500 M-$-33.81 M-6.8%-
2017-Q2$486 M-2.67%$-27.84 M-5.7%-17.66%
2017-Q3$466 M-4.18%$-65.42 M-14.0%135.00%
2017-Q4$502 M7.67%$53.23 M10.6%-181.36%
2018-Q1$514 M2.51%$-164.05 M-31.9%-408.21%
2018-Q2$503 M-2.20%$-14.04 M-2.8%-91.44%
2018-Q3$533 M5.97%$-35.07 M-6.6%149.81%
2018-Q4$494 M-7.37%$19.09 M3.9%-154.44%

Nuance ownership

When you are planning to invest in shares of a company, it's always worth to check its ownership structure.

Nuance shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 1.48% of all shares.

Bearish positions for NUAN stock account 0.00%, no big difference from last month.

For a better understanding, the following table shows ownership data compared to other related companies:

NUANADBECERNCSCOGOOGL
Market cap$4.9 B$140.5 B$23.4 B$207.6 B$353.1 B
Total shares285.6 M488.0 M325.4 M4,280.0 M299.4 M
Float shares283.0 M483.6 M307.2 M4,280.0 M601.6 M
  - Institutional holdings (%)91.3%88.9%82.8%77.3%81.0%
  - Insider holdings (%)1.5%0.3%4.4%0.1%0.2%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Nuance summary

Monday, August 19th, 2019
Open$16.87
Close$17.08
Day range$16.70 - $17.11
Previous close$16.71
Session gain2.21%
Average true range$0.51
50d mov avg$16.40
100d mov avg$16.79
200d mov avg$16.32
Daily patternlb01c
Weekly pattern lb06c

Nuance performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We selected Adobe, Cerner, Cisco Systems, Alphabet, HP, International Business Machines, Intuit, Allscripts Healthcare Solutions, Microsoft and Xerox as the bechmarking frame for Nuance stock.
Stock3m6m12m
NUANNuance Communicat...-3.01%3.26%2.95%
ADBEAdobe4.80%11.23%10.12%
CERNCerner2.02%24.73%10.07%
CSCOCisco Systems-10.24%-1.98%7.59%
GOOGLAlphabet0.89%5.32%-3.01%
HPQHP1.11%-16.68%-19.93%
IBMInternational Bus...0.75%-0.79%-3.94%
INTUIntuit6.69%9.67%27.61%
MDRXAllscripts Health...-13.38%-26.29%-38.36%
MSFTMicrosoft10.01%25.61%29.69%
XRXXerox-10.45%-8.54%7.46%

Nuance competitors

We selected a few stocks to conform a list of Nuance competitors to examine if you are interested in investing in NUAN: