Cerner (CERN) Upgraded to Hold at Zacks Investment Research

Zacks Investment Research upgraded shares of Cerner (NASDAQ:CERN) from a sell rating to a hold rating in a research report sent to investors on Tuesday morning.

According to Zacks, “Cerner Corporation currently rides on its solid international growth, which is likely to boost with the company’s prospects in Australia, U.K. Ireland and Germany. 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. Further, the company recently reported a suite of developments in its EHR platform. However, the company has been grappling with software issues and technology resale. Lesser-than-expected subscription bookings mar Cerner’s licensed software sales recently. A downbeat guidance indicates looming concerns ahead. Further, lower margins on technology resale, resulting from higher mix of device resale are a concern. Cerner underperformed its industry in a year's time.”

Other research analysts also recently issued research reports about the stock. Canaccord Genuity dropped their price objective on shares of Cerner from $73.00 to $64.00 and set a buy rating on the stock in a report on Thursday, May 3rd. Argus downgraded shares of Cerner from a buy rating to a hold rating and boosted their price objective for the stock from $54.49 to $64.65 in a report on Tuesday, March 13th. BidaskClub downgraded shares of Cerner from a sell rating to a strong sell rating in a report on Thursday, March 15th. Stifel Nicolaus dropped their price objective on shares of Cerner from $71.00 to $62.00 and set a hold rating on the stock in a report on Thursday, May 3rd. Finally, KeyCorp dropped their price objective on shares of Cerner from $85.00 to $76.00 and set an overweight rating on the stock in a report on Monday, April 2nd. Ten research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company’s stock. The company currently has an average rating of Buy and an average target price of $68.51.

Shares of Cerner opened at $61.43 on Tuesday, according to MarketBeat. The firm has a market capitalization of $20.29 billion, a P/E ratio of 27.92, a PEG ratio of 1.93 and a beta of 0.96. Cerner has a one year low of $52.05 and a one year high of $73.86. The company has a current ratio of 2.95, a quick ratio of 2.93 and a debt-to-equity ratio of 0.09.

Cerner (NASDAQ:CERN) last announced its earnings results on Wednesday, May 2nd. The company reported $0.58 EPS for the quarter, hitting the consensus estimate of $0.58. The firm had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.34 billion. Cerner had a net margin of 16.50% and a return on equity of 15.80%. The business’s quarterly revenue was up 2.6% on a year-over-year basis. During the same quarter last year, the firm posted $0.59 EPS. research analysts expect that Cerner will post 2.28 EPS for the current fiscal year.

In other news, Vice Chairman Clifford W. Illig sold 3,000 shares of Cerner stock in a transaction dated Monday, May 7th. The shares were sold at an average price of $58.32, for a total transaction of $174,960.00. Following the sale, the insider now directly owns 1,229,719 shares in the company, valued at approximately $71,717,212.08. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director William D. Zollars sold 3,900 shares of Cerner stock in a transaction dated Monday, May 21st. The shares were sold at an average price of $60.80, for a total transaction of $237,120.00. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 275,848 shares of company stock worth $16,650,169. 4.71% of the stock is owned by company insiders.

A number of large investors have recently added to or reduced their stakes in CERN. Icon Wealth Partners LLC acquired a new position in Cerner in the fourth quarter valued at about $107,000. MV Capital Management Inc. acquired a new position in Cerner in the first quarter valued at about $116,000. Archford Capital Strategies LLC acquired a new position in Cerner in the first quarter valued at about $181,000. Virtue Capital Management LLC acquired a new position in Cerner in the fourth quarter valued at about $197,000. Finally, Cedar Hill Associates LLC acquired a new position in Cerner in the fourth quarter valued at about $200,000. Hedge funds and other institutional investors own 77.72% of the company’s stock.

About Cerner

Cerner Corporation provides health care information technology solutions and services in the United States and internationally. The company offers Cerner Millennium architecture, a person-centric computing framework, which includes clinical, financial, and management information systems that allow providers to access an individual's electronic health record (EHR) at the point of care, and organizes and delivers information for physicians, nurses, laboratory technicians, pharmacists, front- and back-office professionals, and consumers.

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