Zacks Investment Research Downgrades Cerner Corp. (CERN) to Hold
Cerner Corp. (NASDAQ:CERN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday.
According to Zacks, “We believe that Cerner has growth opportunities in the revenue cycle management (RCM), Population Health and ambulatory market based on its product strength and enviable track record. Additionally, growing percentage of higher margin software in the business mix is expected to drive margins. Bookings will be key metric to watch for over the next few quarters. For the current year Zacks Consensus Estimate inched up by a penny in the last two months and is currently pegged at $2.20 per share. Meanwhile Cerner reported strong second quarter 2016 results, beating the Zacks Consensus Estimates on both lines. Notably, the HCIT (Health care and Information Technology) market is forecasted to witness stupendous growth in the coming quarters, and Cerner is one of the largest pure-play HCIT companies, a major positive in our view. However, this market is highly competitive, which exerts considerable pressure on both pricing and margins. In fact stringent hospita”
A number of other equities research analysts also recently issued reports on the company. Oppenheimer Holdings Inc. reiterated an “outperform” rating and issued a $67.00 price objective on shares of Cerner Corp. in a research report on Friday. Bank of America Corp. began coverage on Cerner Corp. in a research report on Monday, September 19th. They issued a “neutral” rating and a $67.00 price objective on the stock. Canaccord Genuity reiterated a “buy” rating and issued a $68.00 price objective on shares of Cerner Corp. in a research report on Sunday, September 11th. Cowen and Company downgraded Cerner Corp. from an “outperform” rating to a “market perform” rating and set a $65.00 price objective on the stock. in a research report on Thursday, September 8th. Finally, Stifel Nicolaus started coverage on Cerner Corp. in a research report on Wednesday, August 31st. They set a “hold” rating on the stock. Ten analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Cerner Corp. currently has an average rating of “Buy” and a consensus target price of $66.35.
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Cerner Corp. (NASDAQ:CERN) traded down 0.16% during midday trading on Monday, hitting $60.85. The company’s stock had a trading volume of 835,574 shares. The stock has a 50 day moving average of $62.56 and a 200 day moving average of $59.39. The company has a market cap of $20.55 billion, a PE ratio of 33.42 and a beta of 0.79. Cerner Corp. has a 52-week low of $49.59 and a 52-week high of $68.31.
Cerner Corp. (NASDAQ:CERN) last issued its quarterly earnings data on Tuesday, August 2nd. The company reported $0.58 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.57 by $0.01. Cerner Corp. had a return on equity of 18.57% and a net margin of 13.53%. The company had revenue of $1.22 billion for the quarter, compared to the consensus estimate of $1.21 billion. During the same quarter last year, the business posted $0.52 earnings per share. The firm’s revenue was up 8.0% compared to the same quarter last year. On average, equities analysts expect that Cerner Corp. will post $2.36 EPS for the current year.
In other news, Vice Chairman Clifford W. Illig sold 325,705 shares of the business’s stock in a transaction that occurred on Thursday, August 18th. The stock was sold at an average price of $65.10, for a total value of $21,203,395.50. Following the sale, the insider now directly owns 6,652,392 shares of the company’s stock, valued at approximately $433,070,719.20. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Linda M. Dillman sold 6,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 6th. The stock was sold at an average price of $64.68, for a total value of $388,080.00. The disclosure for this sale can be found here. 13.20% of the stock is owned by insiders.
A number of institutional investors have recently made changes to their positions in CERN. Loomis Sayles & Co. L P raised its position in shares of Cerner Corp. by 56.7% in the first quarter. Loomis Sayles & Co. L P now owns 6,953,349 shares of the company’s stock worth $368,249,000 after buying an additional 2,517,398 shares during the last quarter. Emerald Acquisition Ltd. purchased a new position in shares of Cerner Corp. during the second quarter worth $98,316,000. Global Thematic Partners LLC purchased a new position in shares of Cerner Corp. during the second quarter worth $94,714,000. Manning & Napier Advisors LLC raised its position in shares of Cerner Corp. by 22.5% in the second quarter. Manning & Napier Advisors LLC now owns 8,496,202 shares of the company’s stock worth $497,876,000 after buying an additional 1,561,040 shares during the last quarter. Finally, Generation Investment Management LLP raised its position in shares of Cerner Corp. by 16.3% in the second quarter. Generation Investment Management LLP now owns 10,894,749 shares of the company’s stock worth $638,432,000 after buying an additional 1,527,317 shares during the last quarter. Institutional investors own 81.41% of the company’s stock.
About Cerner Corp.
Cerner Corporation 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. Its segments include Domestic and Global. The Domestic segment includes the business activity in the United States.
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