Zacks Investment Research downgraded shares of Cerner (NASDAQ:CERN) from a buy rating to a hold rating in a report released on Tuesday.

According to Zacks, “Cerner has had an impressive run on the bourses in the last year, trading above the broader industry. 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.”

Other research analysts also recently issued reports about the stock. Royal Bank of Canada reaffirmed a buy rating on shares of Cerner in a research report on Wednesday, October 25th. SunTrust Banks reaffirmed a buy rating and set a $79.00 price objective on shares of Cerner in a research report on Thursday, October 19th. Jefferies Group set a $79.00 target price on shares of Cerner and gave the stock a buy rating in a research report on Friday, October 13th. Piper Jaffray Companies reissued a buy rating and issued a $77.00 target price on shares of Cerner in a research report on Thursday, October 12th. Finally, Cantor Fitzgerald reissued a buy rating and issued a $77.00 target price on shares of Cerner in a research report on Tuesday, October 10th. Sixteen analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. Cerner presently has an average rating of Hold and an average target price of $69.83.

Shares of Cerner (NASDAQ CERN) traded down $0.34 on Tuesday, reaching $70.28. 1,950,000 shares of the company were exchanged, compared to its average volume of 1,690,000. Cerner has a 52-week low of $50.33 and a 52-week high of $73.86. The stock has a market capitalization of $23,360.00, a P/E ratio of 34.97, a PEG ratio of 2.17 and a beta of 0.94. The company has a debt-to-equity ratio of 0.11, a current ratio of 2.77 and a quick ratio of 2.75.

Cerner (NASDAQ:CERN) last announced its quarterly earnings data 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 company had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.29 billion. During the same period in the previous year, the firm posted $0.59 earnings per share. The business’s revenue for the quarter was up 7.7% on a year-over-year basis. equities analysts predict that Cerner will post 2.24 earnings per share for the current year.

In other news, Chairman Clifford W. Illig sold 530,000 shares of the business’s stock in a transaction 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 completion of the sale, the chairman now directly owns 1,229,719 shares in the company, valued at $80,595,783.26. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Chairman Clifford W. Illig sold 4,000 shares of the business’s stock in a transaction 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 completion of the sale, the chairman now owns 1,229,719 shares of the company’s stock, valued at $81,112,265.24. The disclosure for this sale can be found here. Insiders sold 788,000 shares of company stock valued at $52,190,800 over the last 90 days. 13.11% of the stock is owned by corporate insiders.

Several institutional investors have recently modified their holdings of CERN. Raymond James Trust N.A. acquired a new stake in shares of Cerner in the second quarter worth $203,000. Stevens Capital Management LP acquired a new stake in shares of Cerner in the second quarter worth $1,289,000. Thrivent Financial For Lutherans lifted its stake in shares of Cerner by 3.1% in the second quarter. Thrivent Financial For Lutherans now owns 11,110 shares of the company’s stock worth $738,000 after buying an additional 330 shares during the last quarter. Acrospire Investment Management LLC lifted its stake in shares of Cerner by 100.0% in the second quarter. Acrospire Investment Management LLC now owns 1,800 shares of the company’s stock worth $120,000 after buying an additional 900 shares during the last quarter. Finally, Mutual of America Capital Management LLC raised its stake in Cerner by 2.8% during the 2nd quarter. Mutual of America Capital Management LLC now owns 35,814 shares of the company’s stock valued at $2,381,000 after purchasing an additional 985 shares during the last quarter. Institutional investors and hedge funds own 81.83% of the company’s stock.

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About Cerner

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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