Cerner Corporation (CERN) Upgraded to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of Cerner Corporation (NASDAQ:CERN) from a hold rating to a buy rating in a report issued on Tuesday. The brokerage currently has $81.00 target price on the stock.
According to Zacks, “Earnings estimates for Cerner Corporation for the third quarter have been going down of late. The company faces currency headwind and macroeconomic challenges. Unfavorable currency translation is expected to weigh on its sales and earnings in the third quarter. In recent times 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. 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. However, a growing proportion of low-margin services and technology resale may affect margins. Meanwhile, stringent hospital budgets exert pressure on pricing.”
Other equities analysts have also recently issued reports about the stock. Cantor Fitzgerald reissued a buy rating and issued a $77.00 price objective on shares of Cerner Corporation in a research note on Tuesday, October 10th. KeyCorp reissued a buy rating and issued a $76.00 price objective on shares of Cerner Corporation in a research note on Friday, September 22nd. Jefferies Group LLC reissued a buy rating and issued a $74.00 price objective on shares of Cerner Corporation in a research note on Thursday, July 6th. Canaccord Genuity reissued a buy rating and issued a $69.00 price objective on shares of Cerner Corporation in a research note on Wednesday, September 6th. Finally, Piper Jaffray Companies reissued a buy rating and issued a $77.00 price objective on shares of Cerner Corporation in a research note on Thursday, October 12th. Fourteen equities research analysts have rated the stock with a hold rating, nine have issued a buy rating and one has issued a strong buy rating to the stock. Cerner Corporation has a consensus rating of Hold and an average price target of $69.05.
Shares of Cerner Corporation (CERN) traded up 0.29% during mid-day trading on Tuesday, reaching $73.01. 3,458,703 shares of the company were exchanged. The stock has a 50 day moving average price of $70.84 and a 200-day moving average price of $65.92. Cerner Corporation has a 12 month low of $47.01 and a 12 month high of $73.86. The stock has a market capitalization of $24.21 billion, a P/E ratio of 36.89 and a beta of 0.95.
Cerner Corporation (NASDAQ:CERN) last announced its quarterly earnings data on Thursday, July 27th. The company reported $0.56 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.57 by ($0.01). The firm had revenue of $1.29 billion during the quarter, compared to analyst estimates of $1.30 billion. Cerner Corporation had a net margin of 13.47% and a return on equity of 18.18%. The business’s quarterly revenue was up 6.3% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.58 earnings per share. Analysts predict that Cerner Corporation will post $2.50 earnings per share for the current year.
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In other Cerner Corporation news, COO Michael Nill sold 99,470 shares of the company’s stock in a transaction dated Wednesday, September 13th. The shares were sold at an average price of $70.45, for a total value of $7,007,661.50. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, President Zane M. Burke sold 94,000 shares of the company’s stock in a transaction dated Tuesday, September 5th. The shares were sold at an average price of $67.47, for a total transaction of $6,342,180.00. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 371,583 shares of company stock worth $24,758,191. 13.20% of the stock is owned by insiders.
A number of large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its holdings in Cerner Corporation by 3.1% in the 2nd quarter. Vanguard Group Inc. now owns 29,296,545 shares of the company’s stock valued at $1,947,341,000 after purchasing an additional 876,919 shares in the last quarter. BlackRock Inc. lifted its holdings in Cerner Corporation by 0.8% in the 2nd quarter. BlackRock Inc. now owns 18,436,042 shares of the company’s stock valued at $1,225,441,000 after purchasing an additional 137,320 shares in the last quarter. Bank of New York Mellon Corp lifted its holdings in Cerner Corporation by 19.0% in the 2nd quarter. Bank of New York Mellon Corp now owns 17,546,618 shares of the company’s stock valued at $1,166,325,000 after purchasing an additional 2,800,955 shares in the last quarter. State Street Corp lifted its holdings in Cerner Corporation by 1.8% in the 1st quarter. State Street Corp now owns 12,593,837 shares of the company’s stock valued at $741,147,000 after purchasing an additional 228,570 shares in the last quarter. Finally, Fiduciary Management Inc. WI lifted its holdings in Cerner Corporation by 63.2% in the 1st quarter. Fiduciary Management Inc. WI now owns 8,241,408 shares of the company’s stock valued at $485,007,000 after purchasing an additional 3,192,338 shares in the last quarter. Institutional investors own 78.94% of the company’s stock.
About Cerner Corporation
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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