Today's video focuses on Cerence (CRNC 2.36%) and recent company news dealing with leadership changes. Here are some highlights from the video.
- On Dec. 15, Cerence announced that Sanjay Dhawan had resigned from the company, effective immediately. Sanjay Dhawan had led Cerence as the CEO for the last two years. At the moment, the company has not released any reasons for the sudden resignation.
- The Cerence board of directors promoted Dr. Stefan Ortmanns as the new CEO. Dr. Ortmanns is a 20-year veteran of the company, most recently Cerence's executive vice president and leader of its core product business. The board believes Dr. Ortmanns is the right person for the job, as he has deep customer insight and is believed to be responsible for more than 80% of the company's revenue. Dr. Ortmanns also holds numerous engineering and computer science degrees.
- The loss of a CEO so quickly has created a bearish sentiment toward Cerence's stock price, which has dropped over 10% in the past month. Management has tried to tame the negative emotions by assuring investors that no changes to guidance have occurred due to these events.
Click the video below for my full thoughts and analysis.
*Stock prices used were the midday prices of Dec. 17, 2021. The video was published on Dec. 17, 2021.