Cerner (NASDAQ:CERN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Tuesday, January 9th. The brokerage presently has a $79.00 price target on the stock. Zacks Investment Research‘s price objective would suggest a potential upside of 14.28% from the company’s previous close.
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 facing macroeconomic challenges lately. Unfavorable political scenario and expensive valuation may add to worries. 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.”
Other analysts also recently issued reports about the company. Stifel Nicolaus restated a “hold” rating on shares of Cerner in a research note on Wednesday, November 22nd. JPMorgan Chase & Co. downgraded Cerner from an “overweight” rating to a “neutral” rating in a research note on Friday, October 27th. Piper Jaffray Companies restated a “buy” rating and issued a $77.00 price target on shares of Cerner in a research note on Thursday, October 12th. BidaskClub downgraded Cerner from a “buy” rating to a “hold” rating in a research note on Friday, December 22nd. Finally, Royal Bank of Canada restated a “buy” rating on shares of Cerner in a research note on Wednesday, October 25th. One investment analyst has rated the stock with a sell rating, fourteen have given a hold rating and nine have given a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average target price of $70.16.
Cerner (NASDAQ:CERN) opened at $69.13 on Tuesday. Cerner has a 12 month low of $51.26 and a 12 month high of $73.86. The stock has a market capitalization of $23,110.00, a P/E ratio of 34.39, a P/E/G ratio of 2.05 and a beta of 0.94. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.75 and a current ratio of 2.77.
Cerner (NASDAQ:CERN) last announced its earnings results on Thursday, October 26th. The company reported $0.61 earnings per share for the quarter, missing the consensus estimate of $0.62 by ($0.01). Cerner had a net margin of 13.37% and a return on equity of 18.03%. The company had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.29 billion. During the same quarter last year, the business posted $0.59 earnings per share. The company’s revenue for the quarter was up 7.7% compared to the same quarter last year. analysts expect that Cerner will post 2.24 earnings per share for the current fiscal year.
In other news, VP Michael R. Battaglioli sold 4,000 shares of the business’s stock in a transaction on Wednesday, December 13th. The stock was sold at an average price of $69.89, for a total value of $279,560.00. Following the completion of the transaction, the vice president now directly owns 4,000 shares of the company’s stock, valued at $279,560. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Chairman Clifford W. Illig sold 530,000 shares of the company’s stock in a transaction on Monday, November 20th. The shares were sold at an average price of $65.54, for a total value of $34,736,200.00. Following the completion of the transaction, the chairman now owns 1,229,719 shares of the company’s stock, valued at $80,595,783.26. The disclosure for this sale can be found here. Over the last three months, insiders sold 788,000 shares of company stock valued at $52,190,800. Insiders own 13.11% of the company’s stock.
A number of institutional investors have recently added to or reduced their stakes in CERN. Advisory Services Network LLC grew its position in Cerner by 4.4% during the second quarter. Advisory Services Network LLC now owns 1,648 shares of the company’s stock valued at $110,000 after acquiring an additional 70 shares during the period. Acrospire Investment Management LLC grew its position in Cerner by 100.0% during the second quarter. Acrospire Investment Management LLC now owns 1,800 shares of the company’s stock valued at $120,000 after acquiring an additional 900 shares during the period. Fuller & Thaler Asset Management Inc. purchased a new stake in Cerner during the third quarter valued at about $121,000. Cerebellum GP LLC purchased a new stake in Cerner during the fourth quarter valued at about $127,000. Finally, Steward Partners Investment Advisory LLC purchased a new stake in Cerner during the third quarter valued at about $128,000. Hedge funds and other institutional investors own 81.92% of the company’s stock.
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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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