Cerner (CERN) Upgraded to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of Cerner (NASDAQ:CERN) from a hold rating to a buy rating in a report published on Tuesday morning. Zacks Investment Research currently has $79.00 target price on the stock.
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 facing macroeconomic challenges lately. Unfavorable political scenario and expensive valuation may add to worries. 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.”
A number of other analysts have also commented on the company. Cantor Fitzgerald lifted their price target on Cerner to $83.00 and gave the company an overweight rating in a research note on Friday, January 5th. Citigroup initiated coverage on Cerner in a research note on Thursday, January 4th. They issued a neutral rating on the stock. Robert W. Baird reaffirmed a buy rating on shares of Cerner in a research note on Wednesday, January 3rd. BidaskClub lowered Cerner from a buy rating to a hold rating in a research note on Friday, December 22nd. Finally, Piper Jaffray Companies reaffirmed a buy rating and issued a $70.00 price objective on shares of Cerner in a research note on Thursday, November 30th. Fourteen investment analysts have rated the stock with a hold rating and ten have given a buy rating to the stock. Cerner has a consensus rating of Hold and a consensus target price of $69.83.
Shares of Cerner (NASDAQ:CERN) opened at $72.90 on Tuesday. Cerner has a 12 month low of $50.33 and a 12 month high of $73.86. The company has a market capitalization of $24,230.00, a PE ratio of 36.27, a PEG ratio of 2.18 and a beta of 0.94. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.75 and a current ratio of 2.77.
Cerner (NASDAQ:CERN) last announced its quarterly earnings results on Thursday, October 26th. The company reported $0.61 EPS for the quarter, missing the Zacks’ consensus estimate of $0.62 by ($0.01). Cerner had a net margin of 13.37% and a return on equity of 18.03%. The firm had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same period in the previous year, the business posted $0.59 earnings per share. The business’s revenue for the quarter was up 7.7% compared to the same quarter last year. sell-side analysts anticipate that Cerner will post 2.24 EPS for the current fiscal year.
In related news, Chairman Clifford W. Illig sold 4,000 shares of Cerner stock in a transaction that occurred on Tuesday, November 7th. The stock was sold at an average price of $65.96, for a total transaction of $263,840.00. Following the transaction, the chairman now owns 1,229,719 shares of the company’s stock, valued at $81,112,265.24. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Chairman Clifford W. Illig sold 530,000 shares of Cerner stock in a transaction that occurred on Monday, November 20th. The shares were sold at an average price of $65.54, for a total value of $34,736,200.00. Following the transaction, the chairman now directly owns 1,229,719 shares in the company, valued at approximately $80,595,783.26. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 788,000 shares of company stock valued at $52,190,800. Corporate insiders own 13.11% of the company’s stock.
Large investors have recently made changes to their positions in the stock. Advisory Services Network LLC boosted its position in shares of Cerner by 4.4% during the second quarter. Advisory Services Network LLC now owns 1,648 shares of the company’s stock valued at $110,000 after buying an additional 70 shares during the last quarter. Acrospire Investment Management LLC boosted its position in shares of Cerner by 100.0% during the second quarter. Acrospire Investment Management LLC now owns 1,800 shares of the company’s stock valued at $120,000 after buying an additional 900 shares during the last quarter. Fuller & Thaler Asset Management Inc. purchased a new position in Cerner in the third quarter worth $121,000. Steward Partners Investment Advisory LLC purchased a new position in Cerner in the third quarter worth $128,000. Finally, Pacad Investment Ltd. purchased a new position in Cerner in the second quarter worth $130,000. 81.82% of the stock is currently owned by institutional investors.
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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