Cerner (CERN) Stock Rating Reaffirmed by Cantor Fitzgerald
Cerner (NASDAQ:CERN)‘s stock had its “buy” rating reissued by investment analysts at Cantor Fitzgerald in a report issued on Wednesday. They currently have a $80.00 target price on the stock. Cantor Fitzgerald’s target price points to a potential upside of 24.01% from the stock’s previous close.
The analysts wrote, “Our rating remains Overweight and our PT remains $80. Although some amount of investor skepticism regarding the company’s growth outlook continues to temper valuation levels, we do not share those concerns. Our long-term DCF model assumptions are mostly conservative, with high single-digit revenue growth and modest margin expansion. Capital spending should moderate in 2019. We think the shares offer a compelling risk/reward trade off (including the potential impact from the VA contract). Valuation Summary Cerner shares trade at a 25% discount to our DCF-based price target of $80 (including the VA contract).””
Several other brokerages have also recently weighed in on CERN. SunTrust Banks raised their price objective on Cerner to $65.00 and gave the company a “hold” rating in a report on Monday, August 6th. KeyCorp raised their price objective on Cerner from $74.00 to $76.00 and gave the company an “overweight” rating in a report on Monday, August 20th. BidaskClub cut Cerner from a “hold” rating to a “sell” rating in a report on Friday, August 31st. Royal Bank of Canada restated a “buy” rating and issued a $72.00 price objective on shares of Cerner in a report on Friday, August 3rd. Finally, Canaccord Genuity raised their price objective on Cerner from $64.00 to $71.00 and gave the company a “buy” rating in a report on Friday, August 3rd. Two equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and eleven have assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus target price of $71.83.
Cerner (NASDAQ:CERN) last released its earnings results on Thursday, August 2nd. The company reported $0.62 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.60 by $0.02. The firm had revenue of $1.37 billion during the quarter, compared to analysts’ expectations of $1.33 billion. Cerner had a return on equity of 15.26% and a net margin of 16.06%. The company’s revenue was up 5.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.61 EPS. analysts forecast that Cerner will post 2.28 earnings per share for the current fiscal year.
In related news, Director Linda M. Dillman sold 3,900 shares of the firm’s stock in a transaction dated Monday, August 6th. The shares were sold at an average price of $66.54, for a total value of $259,506.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Michael R. Battaglioli sold 4,000 shares of the firm’s stock in a transaction dated Monday, August 6th. The shares were sold at an average price of $67.02, for a total transaction of $268,080.00. Following the completion of the sale, the chief accounting officer now owns 2,226 shares of the company’s stock, valued at $149,186.52. The disclosure for this sale can be found here. Insiders sold a total of 606,192 shares of company stock valued at $40,018,315 over the last quarter. 4.71% of the stock is currently owned by company insiders.
Large investors have recently modified their holdings of the stock. Icon Wealth Partners LLC acquired a new stake in Cerner in the 2nd quarter valued at about $102,000. MV Capital Management Inc. acquired a new stake in Cerner during the first quarter worth approximately $116,000. Moneta Group Investment Advisors LLC lifted its position in Cerner by 3,608.5% during the second quarter. Moneta Group Investment Advisors LLC now owns 31,411 shares of the company’s stock worth $124,000 after acquiring an additional 30,564 shares during the last quarter. CWM LLC lifted its position in Cerner by 880.5% during the second quarter. CWM LLC now owns 2,510 shares of the company’s stock worth $150,000 after acquiring an additional 2,254 shares during the last quarter. Finally, Alpha Windward LLC acquired a new stake in Cerner during the second quarter worth approximately $160,000. Institutional investors and hedge funds own 76.08% of the company’s stock.
Cerner Corporation provides health care information technology solutions and services in the United States and internationally. The company offers Cerner Millennium architecture, a person-centric computing framework, which includes clinical, financial, and management information systems that allow providers to access an individual's electronic health record (EHR) at the point of care, and organizes and delivers information for physicians, nurses, laboratory technicians, pharmacists, front- and back-office professionals, and consumers.
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