Nuance Communications, Inc. (NASDAQ:NUAN) Shares Gap Down on Disappointing Earnings

Shares of Nuance Communications, Inc. (NASDAQ:NUAN) gapped down prior to trading on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $18.29, but opened at $17.02. Nuance Communications shares last traded at $16.72, with a volume of 6,212,886 shares traded.

The software maker reported $0.18 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.27 by $0.09. The company had revenue of $495.60 million for the quarter, compared to the consensus estimate of $495.57 million. Nuance Communications had a negative net margin of 3.38% and a positive return on equity of 14.73%. The company’s revenue was up 2.2% compared to the same quarter last year. During the same quarter last year, the firm posted $0.38 earnings per share.

A number of research analysts recently issued reports on the company. Oppenheimer Holdings, Inc. reiterated an “outperform” rating and set a $23.00 price objective (down from $26.00) on shares of Nuance Communications in a research note on Thursday, August 10th. Barclays PLC lowered their price target on Nuance Communications from $22.00 to $21.00 and set an “overweight” rating on the stock in a report on Wednesday, August 9th. Raymond James Financial, Inc. lowered their price target on Nuance Communications from $24.00 to $22.00 and set a “strong-buy” rating on the stock in a report on Wednesday, August 9th. Deutsche Bank AG lowered their price target on Nuance Communications from $25.00 to $23.00 and set a “buy” rating on the stock in a report on Wednesday, August 9th. Finally, Canaccord Genuity lowered their price target on Nuance Communications from $22.00 to $21.00 and set a “buy” rating on the stock in a report on Wednesday, August 9th. Two analysts have rated the stock with a sell rating, three have assigned a hold rating, five have given a buy rating and one has issued a strong buy rating to the company. The company presently has an average rating of “Hold” and a consensus target price of $20.11.

In other news, insider Daniel David Tempesta sold 7,500 shares of the company’s stock in a transaction that occurred on Monday, May 22nd. The stock was sold at an average price of $18.80, for a total transaction of $141,000.00. Following the sale, the insider now directly owns 295,310 shares of the company’s stock, valued at approximately $5,551,828. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Paul Ricci sold 139,267 shares of the company’s stock in a transaction that occurred on Tuesday, June 6th. The stock was sold at an average price of $19.10, for a total value of $2,659,999.70. Following the sale, the chief executive officer now directly owns 2,090,036 shares in the company, valued at $39,919,687.60. The disclosure for this sale can be found here. Insiders have sold a total of 171,267 shares of company stock worth $3,239,095 over the last ninety days. Insiders own 1.67% of the company’s stock.

Several institutional investors have recently added to or reduced their stakes in NUAN. Clearbridge Investments LLC increased its position in Nuance Communications by 1.7% in the first quarter. Clearbridge Investments LLC now owns 25,590,805 shares of the software maker’s stock valued at $442,977,000 after buying an additional 430,377 shares in the last quarter. Vanguard Group Inc. increased its position in Nuance Communications by 1.5% in the second quarter. Vanguard Group Inc. now owns 23,288,701 shares of the software maker’s stock valued at $405,455,000 after buying an additional 335,427 shares in the last quarter. Ameriprise Financial Inc. increased its position in Nuance Communications by 15.6% in the second quarter. Ameriprise Financial Inc. now owns 17,620,101 shares of the software maker’s stock valued at $306,763,000 after buying an additional 2,383,671 shares in the last quarter. Primecap Management Co. CA increased its position in Nuance Communications by 0.6% in the first quarter. Primecap Management Co. CA now owns 11,901,565 shares of the software maker’s stock valued at $206,016,000 after buying an additional 71,216 shares in the last quarter. Finally, FIL Ltd increased its position in Nuance Communications by 8.0% in the first quarter. FIL Ltd now owns 9,240,823 shares of the software maker’s stock valued at $159,959,000 after buying an additional 680,563 shares in the last quarter. 85.65% of the stock is currently owned by hedge funds and other institutional investors.

The company’s market cap is $4.53 billion. The firm’s 50-day moving average is $17.01 and its 200-day moving average is $17.44.

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Nuance Communications Company Profile

Nuance Communications, Inc is a provider of voice recognition and natural language understanding solutions. The Company’s segments include Healthcare, Mobile, Enterprise and Imaging. The Healthcare segment provides clinical speech and clinical language understanding solutions. The solutions for the Healthcare segment include transcription solutions, Dragon Medical, and clinical document improvement (CDI) and coding solutions.

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