15 Worst 52-Week Low Stocks to Buy Now According to Short Sellers

2. Cerence Inc. (NASDAQ:CRNC)

52 Week Range: $2.34 – $21.66

Current Share Price: $2.68

Short % of Shares Outstanding: 16.56%

Number of Hedge Funds holding stakes as of Q2 2024: 14

Cerence Inc. (NASDAQ:CRNC) is a technology company that provides AI-powered virtual assistants for the mobility/transportation market. It offers edge software components, cloud-connected components, virtual assistant coexistence, and professional services. It also provides conversational artificial intelligence-based solutions

The leader in AI-driven automotive assistants has imploded to a 52-week low amid a challenging market environment. Slowing momentum in the automotive industry and stiff competition in the automotive Generative AI (GenAI) market, which affected CRNC’s top-line growth, are some of the reasons short sellers have continued piling pressure on the stock.

Consequently, short interest on the stock has risen to 16.56%, a situation fuelled by Cerence Inc. (NASDAQ:CRNC) management lowering its fiscal revenue and EBITDA expectations. The company’s withdrawal of its multi-year forecast through 2027 has also raised doubts about its long-term prospects.

Cerence Inc. (NASDAQ:CRNC)’s guidance shows a decrease of about 11% to $40 million and an expected EBITDA of $65 million, a significant drop compared to the earlier forecasted $102 million. The cut has since resulted in the stock imploding to its 52-week lows. Concerns about future growth are one of the reasons Cerence remains one of the worst 52-week low stocks to buy now, according to short-sellers.

Nevertheless, Cerence Inc. (NASDAQ:CRNC) finds itself well-positioned to take advantage of progress in GenAI, an expanding customer base, and a robust network of partners. Its partnership with Skoda, a recognized brand under Volkswagen, stands out as the agreement is focused on improving the driving experience by merging Cerence Chat Pro with Skoda’s in-vehicle voice assistant, Laura.

As of the end of the second quarter, 14 hedge funds in Insider Monkey’s database of 912 funds held stakes in Cerence Inc. (NASDAQ:CRNC), compared to 11 hedge funds in the first quarter.