Zacks Investment Research cut shares of Cerner (NASDAQ:CERN) from a buy rating to a hold rating in a report issued on Thursday morning.
According to Zacks, “Cerner has had an impressive run on the bourses in the last year. We believe that the company has growth opportunities in the revenue cycle management (RCM), Population Health and ambulatory markets based on its product strength and enviable track record of adding new clients. Solid growth in the HealtheIntent platform also holds promise. Additionally, a growing percentage of higher margin software in the business mix is expected to drive margins. The company performed impressively in the ambulatory and small hospital markets lately. However, Cerner has been faceing macroeconomic challenges lately. Unfavorable currency translation is also expected to weigh on its sales and earnings in the coming quarters. In recent times, Cerner’s System sales witnessed a major deterioration owing to a decline in technology resale. Furthermore, the HCIT market is highly competitive, which exerts considerable pressure on both pricing and margins.”
Several other research analysts have also commented on the company. Canaccord Genuity reiterated a buy rating and set a $69.00 price target on shares of Cerner in a report on Wednesday, September 6th. JPMorgan Chase & Co. lowered Cerner from an overweight rating to a neutral rating in a report on Friday, October 27th. Stifel Nicolaus reiterated a hold rating on shares of Cerner in a report on Wednesday, November 22nd. Piper Jaffray Companies reiterated a buy rating and set a $77.00 price target on shares of Cerner in a report on Thursday, October 12th. Finally, Royal Bank of Canada reiterated a buy rating on shares of Cerner in a report on Wednesday, October 25th. Fifteen research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. The stock presently has an average rating of Hold and a consensus price target of $69.94.
Cerner (NASDAQ:CERN) traded down $0.01 during midday trading on Thursday, hitting $70.52. The stock had a trading volume of 338,835 shares, compared to its average volume of 1,459,375. Cerner has a fifty-two week low of $47.09 and a fifty-two week high of $73.86. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.75 and a current ratio of 2.77. The stock has a market cap of $23,440.00, a price-to-earnings ratio of 35.09, a PEG ratio of 2.11 and a beta of 0.94.
Cerner (NASDAQ:CERN) last posted its quarterly earnings results on Thursday, October 26th. The company reported $0.61 EPS for the quarter, missing the consensus estimate of $0.62 by ($0.01). Cerner had a return on equity of 18.03% and a net margin of 13.37%. The company had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.29 billion. During the same quarter in the prior year, the firm earned $0.59 EPS. The firm’s revenue was up 7.7% on a year-over-year basis. equities research analysts expect that Cerner will post 2.24 earnings per share for the current fiscal year.
In other Cerner news, CEO Clifford W. Illig sold 140,000 shares of the business’s stock in a transaction dated Thursday, November 16th. The shares were sold at an average price of $65.52, for a total transaction of $9,172,800.00. Following the sale, the chief executive officer now directly owns 1,229,719 shares in the company, valued at $80,571,188.88. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Chairman Clifford W. Illig sold 4,000 shares of the business’s stock in a transaction dated Tuesday, November 7th. The stock was sold at an average price of $65.96, for a total transaction of $263,840.00. Following the sale, the chairman now owns 1,229,719 shares in the company, valued at $81,112,265.24. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 788,000 shares of company stock worth $52,190,800. 13.11% of the stock is owned by insiders.
A number of large investors have recently modified their holdings of CERN. Advisory Services Network LLC increased its stake in Cerner by 4.4% during the second quarter. Advisory Services Network LLC now owns 1,648 shares of the company’s stock worth $110,000 after purchasing an additional 70 shares during the period. Acrospire Investment Management LLC increased its stake in Cerner by 100.0% during the second quarter. Acrospire Investment Management LLC now owns 1,800 shares of the company’s stock worth $120,000 after purchasing an additional 900 shares during the period. Fuller & Thaler Asset Management Inc. purchased a new stake in Cerner during the third quarter worth about $121,000. Steward Partners Investment Advisory LLC purchased a new stake in Cerner during the third quarter worth about $128,000. Finally, Pacad Investment Ltd. purchased a new stake in Cerner during the second quarter worth about $130,000. Institutional investors own 81.82% of the company’s stock.
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Cerner Company Profile
Cerner Corporation (Cerner) is a supplier of healthcare information technology (HCIT). The Company offers a range of intelligent solutions and services that support the clinical, financial and operational needs of organizations of all sizes. The Company’s segments include Domestic and Global. The Domestic segment includes revenue contributions and expenditures associated with business activity in the United States.
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