Cerner Corporation (CERN) Stock Price Down 8.4% Following Weak Earnings

Shares of Cerner Corporation (NASDAQ:CERN) were down 8.4% during mid-day trading on Friday following a dissappointing earnings announcement. The stock traded as low as $62.86 and last traded at $65.31. Approximately 7,823,697 shares changed hands during mid-day trading, an increase of 289% from the average daily volume of 2,009,340 shares. The stock had previously closed at $71.32.

The company reported $0.61 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.62 by ($0.01). Cerner Corporation had a net margin of 13.37% and a return on equity of 18.50%. The company had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.29 billion. During the same quarter last year, the business earned $0.59 EPS. The firm’s revenue for the quarter was up 7.7% on a year-over-year basis.

Several analysts recently commented on CERN shares. Cantor Fitzgerald reiterated a “buy” rating and issued a $77.00 price objective on shares of Cerner Corporation in a research note on Tuesday, October 10th. KeyCorp reiterated a “buy” rating and issued a $76.00 price objective on shares of Cerner Corporation in a research note on Friday, September 22nd. Robert W. Baird reiterated a “hold” rating and issued a $67.00 price objective on shares of Cerner Corporation in a research note on Thursday, August 31st. SunTrust Banks, Inc. reiterated a “buy” rating and issued a $79.00 price objective on shares of Cerner Corporation in a research note on Thursday, October 19th. Finally, Zacks Investment Research cut shares of Cerner Corporation from a “buy” rating to a “hold” rating in a research note on Tuesday, August 1st. Fifteen investment analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus price target of $69.05.

In related news, COO Michael Nill sold 99,470 shares of the business’s stock in a transaction that occurred on Wednesday, September 13th. The shares were sold at an average price of $70.45, for a total value of $7,007,661.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Chairman Clifford W. Illig sold 118,113 shares of the business’s stock in a transaction that occurred on Friday, August 11th. The shares were sold at an average price of $62.03, for a total transaction of $7,326,549.39. Following the completion of the sale, the chairman now owns 1,229,719 shares of the company’s stock, valued at $76,279,469.57. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 371,583 shares of company stock valued at $24,758,191. Insiders own 13.20% of the company’s stock.

A number of institutional investors have recently added to or reduced their stakes in the stock. Alps Advisors Inc. grew its holdings in Cerner Corporation by 0.3% in the second quarter. Alps Advisors Inc. now owns 8,693 shares of the company’s stock valued at $578,000 after purchasing an additional 23 shares during the period. Laurel Wealth Advisors Inc. grew its holdings in Cerner Corporation by 0.6% in the second quarter. Laurel Wealth Advisors Inc. now owns 3,909 shares of the company’s stock valued at $259,000 after purchasing an additional 24 shares during the period. Conning Inc. grew its holdings in Cerner Corporation by 0.8% in the second quarter. Conning Inc. now owns 7,742 shares of the company’s stock valued at $515,000 after purchasing an additional 58 shares during the period. ProVise Management Group LLC grew its holdings in Cerner Corporation by 1.3% in the second quarter. ProVise Management Group LLC now owns 5,184 shares of the company’s stock valued at $345,000 after purchasing an additional 69 shares during the period. Finally, Advisory Services Network LLC grew its holdings in Cerner Corporation by 4.4% in the second quarter. Advisory Services Network LLC now owns 1,648 shares of the company’s stock valued at $110,000 after purchasing an additional 70 shares during the period. Hedge funds and other institutional investors own 78.98% of the company’s stock.

The stock’s 50 day moving average price is $71.12 and its 200-day moving average price is $66.24. The company has a market capitalization of $21.66 billion, a PE ratio of 33.00 and a beta of 0.95.

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Cerner Corporation Company Profile

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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