Zacks Investment Research Lowers 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”
Several other research firms also recently commented on CERN. Bank of America Corp. initiated coverage on shares of Cerner Corp. in a report on Monday, September 19th. They set a “neutral” rating and a $67.00 price objective for the company. Raymond James Financial Inc. downgraded shares of Cerner Corp. from an “outperform” rating to a “market perform” rating and set a $64.57 price objective for the company. in a report on Tuesday, July 5th. Barclays PLC increased their price objective on shares of Cerner Corp. from $55.00 to $67.00 and gave the company an “overweight” rating in a report on Wednesday, August 3rd. Oppenheimer Holdings Inc. reissued an “outperform” rating and set a $67.00 price objective on shares of Cerner Corp. in a report on Friday. Finally, Cowen and Company downgraded shares of Cerner Corp. from an “outperform” rating to a “market perform” rating and set a $65.00 price objective for the company. in a report on Thursday, September 8th. Ten investment analysts have rated the stock with a hold rating, fifteen have issued a buy rating and one has assigned a strong buy rating to the stock. Cerner Corp. has a consensus rating of “Buy” and a consensus price target of $66.35.
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Shares of Cerner Corp. (NASDAQ:CERN) traded down 0.20% on Monday, reaching $60.83. The company had a trading volume of 1,535,424 shares. The stock’s 50 day moving average is $62.56 and its 200 day moving average is $59.39. Cerner Corp. has a 52 week low of $49.59 and a 52 week high of $68.31. The firm has a market capitalization of $20.54 billion, a price-to-earnings ratio of 33.40 and a beta of 0.79.
Cerner Corp. (NASDAQ:CERN) last issued its quarterly earnings results 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 business earned $1.22 billion during the quarter, compared to analyst estimates of $1.21 billion. During the same quarter in the prior year, the business posted $0.52 EPS. Cerner Corp.’s revenue for the quarter was up 8.0% compared to the same quarter last year. On average, equities analysts anticipate that Cerner Corp. will post $2.36 EPS for the current year.
In other Cerner Corp. news, COO Michael Nill sold 50,000 shares of the firm’s stock in a transaction that occurred on Monday, August 8th. The shares were sold at an average price of $67.16, for a total value of $3,358,000.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Chairman Neal L. Patterson sold 428,638 shares of the firm’s stock in a transaction that occurred on Tuesday, August 9th. The shares were sold at an average price of $67.14, for a total transaction of $28,778,755.32. The disclosure for this sale can be found here. 13.20% of the stock is currently owned by company insiders.
A number of large investors have recently made changes to their positions in CERN. Chesley Taft & Associates LLC purchased a new stake in shares of Cerner Corp. during the third quarter valued at $1,324,000. BTIM Corp. increased its stake in Cerner Corp. by 4.2% in the third quarter. BTIM Corp. now owns 5,575 shares of the company’s stock valued at $344,000 after buying an additional 225 shares during the last quarter. Advisor Consultant Network Inc. bought a new stake in Cerner Corp. during the third quarter valued at approximately $1,225,000. Webster Bank N. A. increased its stake in Cerner Corp. by 2.4% in the third quarter. Webster Bank N. A. now owns 30,763 shares of the company’s stock valued at $1,899,000 after buying an additional 713 shares during the last quarter. Finally, Pennsylvania Trust Co increased its stake in Cerner Corp. by 3.1% in the third quarter. Pennsylvania Trust Co now owns 7,664 shares of the company’s stock valued at $473,000 after buying an additional 234 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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