Cerner (NASDAQ:CERN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Thursday.
According to Zacks, “Cerner has had an impressive run on the bourses in the last year. 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. Additionally, a growing percentage of higher margin software in the business mix is expected to drive margins. The company performed impressively in the ambulatory and small hospital markets lately. However, Cerner has been faceing macroeconomic challenges lately. Unfavorable currency translation is also expected to weigh on its sales and earnings in the coming quarters. In recent times, Cerner’s System sales witnessed a major deterioration owing to a decline in technology resale. Furthermore, the HCIT market is highly competitive, which exerts considerable pressure on both pricing and margins.”
A number of other brokerages have also issued reports on CERN. SunTrust Banks reissued a “buy” rating and set a $79.00 price target on shares of Cerner in a research note on Thursday, October 19th. Royal Bank of Canada reissued a “buy” rating on shares of Cerner in a research note on Wednesday, October 25th. Jefferies Group set a $79.00 price target on Cerner and gave the stock a “buy” rating in a research note on Friday, October 13th. Piper Jaffray Companies reaffirmed a “buy” rating and set a $77.00 target price on shares of Cerner in a research report on Thursday, October 12th. Finally, Cantor Fitzgerald reaffirmed a “buy” rating and set a $77.00 target price on shares of Cerner in a research report on Tuesday, October 10th. Fifteen investment analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average price target of $69.94.
Shares of Cerner (NASDAQ:CERN) opened at $70.53 on Thursday. Cerner has a one year low of $47.09 and a one year high of $73.86. The company has a current ratio of 2.77, a quick ratio of 2.75 and a debt-to-equity ratio of 0.11. The stock has a market capitalization of $23,450.00, a P/E ratio of 35.09, a P/E/G ratio of 2.07 and a beta of 0.94.
Cerner (NASDAQ:CERN) last issued its quarterly earnings results on Thursday, October 26th. The company reported $0.61 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.62 by ($0.01). Cerner had a return on equity of 18.03% and a net margin of 13.37%. The business had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.29 billion. During the same period in the prior year, the business posted $0.59 earnings per share. Cerner’s revenue was up 7.7% on a year-over-year basis. analysts anticipate that Cerner will post 2.24 earnings per share for the current fiscal year.
In other news, Chairman Clifford W. Illig sold 4,000 shares of the business’s stock in a transaction on Tuesday, November 7th. The stock was sold at an average price of $65.96, for a total value of $263,840.00. Following the completion of the transaction, the chairman now directly owns 1,229,719 shares of the company’s stock, valued at approximately $81,112,265.24. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, President Zane M. Burke sold 50,000 shares of the business’s stock in a transaction on Wednesday, December 13th. The stock was sold at an average price of $70.00, for a total value of $3,500,000.00. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 788,000 shares of company stock valued at $52,190,800. 13.11% of the stock is currently owned by corporate insiders.
Several institutional investors and hedge funds have recently added to or reduced their stakes in CERN. Vanguard Group Inc. grew its stake in Cerner by 3.1% during the 2nd quarter. Vanguard Group Inc. now owns 29,296,545 shares of the company’s stock worth $1,947,341,000 after buying an additional 876,919 shares during the last quarter. Arrowstreet Capital Limited Partnership purchased a new position in Cerner during the 2nd quarter worth $44,524,000. Sawgrass Asset Management LLC purchased a new position in Cerner during the 3rd quarter worth $39,946,000. State Farm Mutual Automobile Insurance Co. grew its stake in Cerner by 381.0% during the 2nd quarter. State Farm Mutual Automobile Insurance Co. now owns 429,846 shares of the company’s stock worth $28,572,000 after buying an additional 340,486 shares during the last quarter. Finally, Koch Industries Inc. purchased a new position in Cerner during the 2nd quarter worth $310,000. 81.82% of the stock is owned by hedge funds and other institutional investors.
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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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