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

According to Zacks, “Cerner has had an unfavorable run on the bourses over the last year. However, the company witnessed record bookings in the quarter and also a strong cash flow. 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. The company performed impressively in the small hospital markets lately. On the flipside, lower margins on technology resale, resulting from higher mix of device resale is a concern. Additionally, Cerner has been facing macroeconomic challenges along with cutthroat competition in niche space. Expensive valuation and surging operating expenses also add to the woes.”

A number of other research firms have also recently weighed in on CERN. SunTrust Banks reaffirmed a buy rating and set a $79.00 price target on shares of Cerner in a report on Thursday, October 19th. Evercore ISI started coverage on Cerner in a report on Thursday, January 18th. They set an in-line rating and a $77.00 price target on the stock. BidaskClub cut Cerner from a hold rating to a sell rating in a report on Wednesday, January 24th. Robert W. Baird raised Cerner from a neutral rating to an outperform rating and lifted their price target for the company from $67.00 to $76.00 in a report on Tuesday, October 31st. Finally, Royal Bank of Canada reaffirmed a buy rating and set a $76.00 price target on shares of Cerner in a report on Wednesday. One analyst has rated the stock with a sell rating, twelve have issued a hold rating and eight have issued a buy rating to the stock. Cerner has a consensus rating of Hold and a consensus price target of $67.05.

Shares of Cerner (NASDAQ:CERN) opened at $61.31 on Thursday. The firm has a market capitalization of $20,380.37, a P/E ratio of 27.62, a PEG ratio of 1.80 and a beta of 0.90. The company has a current ratio of 3.01, a quick ratio of 2.75 and a debt-to-equity ratio of 0.11. Cerner has a twelve month low of $51.26 and a twelve month high of $73.86.

Cerner (NASDAQ:CERN) last released its quarterly earnings results on Tuesday, February 6th. The company reported $0.58 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.61 by ($0.03). The business had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.33 billion. Cerner had a net margin of 16.86% and a return on equity of 16.82%. The business’s quarterly revenue was up 4.5% on a year-over-year basis. During the same period last year, the firm posted $0.61 EPS. sell-side analysts forecast that Cerner will post 2.42 EPS for the current year.

In related news, Chairman Clifford W. Illig sold 530,000 shares of the business’s stock in a transaction that occurred on Monday, November 20th. The stock was sold at an average price of $65.54, for a total transaction of $34,736,200.00. Following the sale, the chairman now owns 1,229,719 shares of the company’s stock, valued at $80,595,783.26. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Clifford W. Illig sold 140,000 shares of the business’s stock in a transaction that occurred on Thursday, November 16th. The stock was sold at an average price of $65.52, for a total value of $9,172,800.00. Following the sale, the chief executive officer now directly owns 1,229,719 shares in the company, valued at approximately $80,571,188.88. The disclosure for this sale can be found here. In the last three months, insiders have sold 784,000 shares of company stock worth $51,926,960. 13.11% of the stock is owned by corporate insiders.

A number of institutional investors have recently bought and sold shares of the business. BlackRock Inc. grew its position in Cerner by 2.2% in the fourth quarter. BlackRock Inc. now owns 19,519,304 shares of the company’s stock worth $1,315,406,000 after buying an additional 420,942 shares during the last quarter. Capital International Investors grew its position in Cerner by 0.3% in the third quarter. Capital International Investors now owns 4,851,296 shares of the company’s stock worth $345,994,000 after buying an additional 12,178 shares during the last quarter. Veritas Asset Management LLP grew its position in Cerner by 4.8% in the third quarter. Veritas Asset Management LLP now owns 3,687,172 shares of the company’s stock worth $262,969,000 after buying an additional 167,900 shares during the last quarter. American Century Companies Inc. grew its position in Cerner by 3.7% in the fourth quarter. American Century Companies Inc. now owns 3,204,461 shares of the company’s stock worth $215,949,000 after buying an additional 114,224 shares during the last quarter. Finally, Legal & General Group Plc grew its position in Cerner by 1.8% in the third quarter. Legal & General Group Plc now owns 1,477,451 shares of the company’s stock worth $105,371,000 after buying an additional 25,842 shares during the last quarter. Hedge funds and other institutional investors own 81.99% 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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