Cerner (CERN) Downgraded by Zacks Investment Research

Cerner (NASDAQ:CERN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued 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.”

Other equities research analysts have also recently issued reports about the stock. Royal Bank of Canada reiterated a “buy” rating on shares of Cerner in a research report on Wednesday, October 25th. SunTrust Banks restated a “buy” rating and issued a $79.00 target price on shares of Cerner in a research note on Thursday, October 19th. Jefferies Group set a $79.00 target price on Cerner and gave the company a “buy” rating in a research note on Friday, October 13th. Piper Jaffray Companies restated a “buy” rating and issued a $77.00 target price on shares of Cerner in a research note on Thursday, October 12th. Finally, Cantor Fitzgerald restated a “buy” rating and issued a $75.00 target price on shares of Cerner in a research note on Wednesday, November 29th. One analyst has rated the stock with a sell rating, fifteen have issued a hold rating and eight have assigned a buy rating to the company. The stock currently has a consensus rating of “Hold” and an average target price of $65.89.

Shares of Cerner (NASDAQ:CERN) traded down $0.90 during trading on Thursday, reaching $62.58. 1,546,187 shares of the company’s stock traded hands, compared to its average volume of 2,401,729. The company has a current ratio of 2.77, a quick ratio of 2.75 and a debt-to-equity ratio of 0.11. Cerner has a 12-month low of $51.26 and a 12-month high of $73.86. The company has a market capitalization of $20,640.00, a PE ratio of 24.20, a PEG ratio of 1.88 and a beta of 0.90.

Cerner (NASDAQ:CERN) last issued its quarterly earnings results on Tuesday, February 6th. The company reported $0.58 EPS for the quarter, missing the consensus estimate of $0.61 by ($0.03). Cerner had a return on equity of 17.25% and a net margin of 16.86%. The business had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.33 billion. During the same quarter last year, the firm posted $0.61 earnings per share. Cerner’s revenue was up 4.5% compared to the same quarter last year. equities research analysts anticipate that Cerner will post 2.48 EPS for the current fiscal year.

In other news, Chairman Clifford W. Illig sold 530,000 shares of the stock in a transaction 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 in the company, valued at $80,595,783.26. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Clifford W. Illig sold 140,000 shares of the stock in a transaction 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 owns 1,229,719 shares in the company, valued at approximately $80,571,188.88. The disclosure for this sale can be found here. Insiders have sold 784,000 shares of company stock worth $51,926,960 in the last 90 days. Company insiders own 13.11% of the company’s stock.

Several hedge funds have recently made changes to their positions in CERN. Capital International Investors boosted its holdings in shares of 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 acquiring an additional 12,178 shares during the period. Veritas Asset Management LLP increased its holdings in shares of Cerner by 4.8% in the 3rd quarter. Veritas Asset Management LLP now owns 3,687,172 shares of the company’s stock valued at $262,969,000 after purchasing an additional 167,900 shares in the last quarter. American Century Companies Inc. increased its holdings in shares of Cerner by 3.7% in the 4th quarter. American Century Companies Inc. now owns 3,204,461 shares of the company’s stock valued at $215,949,000 after purchasing an additional 114,224 shares in the last quarter. Legal & General Group Plc increased its holdings in shares of Cerner by 1.8% in the 3rd quarter. Legal & General Group Plc now owns 1,477,451 shares of the company’s stock valued at $105,371,000 after purchasing an additional 25,842 shares in the last quarter. Finally, Russell Investments Group Ltd. increased its holdings in shares of Cerner by 18.1% in the 3rd quarter. Russell Investments Group Ltd. now owns 1,213,944 shares of the company’s stock valued at $86,568,000 after purchasing an additional 185,957 shares in the last quarter. 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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