Cerner Corp. (CERN) Rating Increased to Buy at Zacks Investment Research
Cerner Corp. (NASDAQ:CERN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Tuesday. The brokerage currently has a $69.00 target price on the stock. Zacks Investment Research’s price target would indicate a potential upside of 12.65% from the stock’s current price.
According to Zacks, “We believe that Cerner has growth opportunities in the revenue cycle management (RCM), Population Health and ambulatory market based on its product strength and enviable track record. Additionally, growing percentage of higher margin software in the business mix is expected to drive margins. Bookings will be key metric to watch for over the next few quarters. For the current year Zacks Consensus Estimate inched up by a penny in the last two months and is currently pegged at $2.20 per share. Meanwhile Cerner reported strong second quarter 2016 results, beating the Zacks Consensus Estimates on both lines. Notably, the HCIT (Health care and Information Technology) market is forecasted to witness stupendous growth in the coming quarters, and Cerner is one of the largest pure-play HCIT companies, a major positive in our view. However, this market is highly competitive, which exerts considerable pressure on both pricing and margins. In fact stringent hospita”
CERN has been the topic of several other research reports. Canaccord Genuity reaffirmed a “buy” rating and set a $68.00 target price on shares of Cerner Corp. in a research note on Sunday, September 11th. Wells Fargo & Co. reaffirmed a “buy” rating on shares of Cerner Corp. in a research note on Sunday, June 26th. Piper Jaffray Cos. reaffirmed an “overweight” rating and set a $81.00 target price on shares of Cerner Corp. in a research note on Monday, August 29th. Jefferies Group reaffirmed a “buy” rating on shares of Cerner Corp. in a research note on Friday, June 10th. Finally, Deutsche Bank AG lowered their target price on Cerner Corp. from $67.00 to $66.00 and set a “buy” rating on the stock in a research note on Wednesday, August 3rd. Nine research analysts have rated the stock with a hold rating, sixteen have given a buy rating and one has assigned a strong buy rating to the stock. The stock presently has an average rating of “Buy” and an average target price of $66.35.
Shares of Cerner Corp. (NASDAQ:CERN) opened at 61.25 on Tuesday. Cerner Corp. has a 12 month low of $49.59 and a 12 month high of $68.31. The firm has a 50-day moving average of $63.29 and a 200 day moving average of $59.06. The firm has a market cap of $20.68 billion, a P/E ratio of 33.64 and a beta of 0.79.
Cerner Corp. (NASDAQ:CERN) last issued its quarterly earnings results on Tuesday, August 2nd. The company reported $0.58 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.57 by $0.01. The firm had revenue of $1.22 billion for the quarter, compared to analysts’ expectations of $1.21 billion. Cerner Corp. had a return on equity of 18.57% and a net margin of 13.53%. Cerner Corp.’s revenue was up 8.0% on a year-over-year basis. During the same quarter last year, the business posted $0.52 EPS. On average, equities research analysts anticipate that Cerner Corp. will post $2.36 EPS for the current fiscal year.
In other Cerner Corp. news, COO Michael Nill sold 50,000 shares of the stock in a transaction dated Monday, August 8th. The stock was sold at an average price of $67.16, for a total value of $3,358,000.00. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Vice Chairman Clifford W. Illig sold 325,705 shares of the stock in a transaction dated Thursday, August 18th. The shares were sold at an average price of $65.10, for a total value of $21,203,395.50. Following the completion of the transaction, the insider now directly owns 6,652,392 shares in the company, valued at approximately $433,070,719.20. The disclosure for this sale can be found here. Insiders own 13.20% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the stock. Glenmede Trust Co. NA raised its position in Cerner Corp. by 81.5% in the first quarter. Glenmede Trust Co. NA now owns 7,228 shares of the company’s stock valued at $382,000 after buying an additional 3,245 shares during the last quarter. CIBC World Markets Inc. raised its position in Cerner Corp. by 52.3% in the first quarter. CIBC World Markets Inc. now owns 10,000 shares of the company’s stock valued at $530,000 after buying an additional 3,434 shares during the last quarter. BlackRock Group LTD raised its position in Cerner Corp. by 4.1% in the first quarter. BlackRock Group LTD now owns 2,625,695 shares of the company’s stock valued at $139,056,000 after buying an additional 102,866 shares during the last quarter. Massmutual Trust Co. FSB ADV raised its position in Cerner Corp. by 68,592.3% in the first quarter. Massmutual Trust Co. FSB ADV now owns 8,930 shares of the company’s stock valued at $473,000 after buying an additional 8,917 shares during the last quarter. Finally, Acrospire Investment Management LLC bought a new position in Cerner Corp. during the first quarter valued at $106,000. 81.39% of the stock is currently owned by hedge funds and other institutional investors.
About Cerner Corp.
Cerner Corporation 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. Its segments include Domestic and Global. The Domestic segment includes the business activity in the United States.
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