Cerner Corp. (NASDAQ:CERN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Monday.
According to Zacks, “We believe that Cerner has growth opportunities in the revenue cycle management (RCM), Population Health and ambulatory market based on its product strength and enviable track record. Additionally, growing percentage of higher margin software in the business mix is expected to drive margins. Bookings will be key metric to watch for over the next few quarters. For the current year Zacks Consensus Estimate inched up by a penny in the last two months and is currently pegged at $2.20 per share. Meanwhile Cerner reported strong second quarter 2016 results, beating the Zacks Consensus Estimates on both lines. Notably, the HCIT (Health care and Information Technology) market is forecasted to witness stupendous growth in the coming quarters, and Cerner is one of the largest pure-play HCIT companies, a major positive in our view. However, this market is highly competitive, which exerts considerable pressure on both pricing and margins. In fact stringent hospita”
A number of other brokerages have also weighed in on CERN. Vetr lowered Cerner Corp. from a “hold” rating to a “sell” rating and set a $64.78 target price for the company. in a research report on Monday, August 8th. Deutsche Bank AG lifted their target price on Cerner Corp. from $66.00 to $70.00 and gave the company a “buy” rating in a research report on Monday, August 15th. JPMorgan Chase & Co. reaffirmed a “buy” rating on shares of Cerner Corp. in a research report on Wednesday, August 3rd. Cowen and Company lowered Cerner Corp. from an “outperform” rating to a “market perform” rating and set a $65.00 target price for the company. in a research report on Thursday, September 8th. Finally, Stifel Nicolaus assumed coverage on Cerner Corp. in a research report on Wednesday, August 31st. They set a “hold” rating for the company. Ten analysts have rated the stock with a hold rating, fifteen have issued a buy rating and one has given a strong buy rating to the company’s stock. The company has a consensus rating of “Buy” and an average price target of $66.35.
Shares of Cerner Corp. (NASDAQ:CERN) opened at 61.15 on Monday. Cerner Corp. has a 52-week low of $49.59 and a 52-week high of $68.31. The stock has a market capitalization of $20.65 billion, a PE ratio of 33.58 and a beta of 0.79. The company’s 50 day moving average price is $62.42 and its 200 day moving average price is $59.55.
Cerner Corp. (NASDAQ:CERN) last issued its earnings results on Tuesday, August 2nd. The company reported $0.58 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.57 by $0.01. The business earned $1.22 billion during the quarter, compared to analyst estimates of $1.21 billion. Cerner Corp. had a return on equity of 18.57% and a net margin of 13.53%. Cerner Corp.’s revenue was up 8.0% on a year-over-year basis. During the same period in the previous year, the company posted $0.52 EPS. On average, equities research analysts anticipate that Cerner Corp. will post $2.36 EPS for the current year.
In related news, Director Linda M. Dillman sold 6,000 shares of the company’s stock in a transaction dated Tuesday, September 6th. The stock was sold at an average price of $64.68, for a total value of $388,080.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Michael R. Battaglioli sold 2,000 shares of the company’s stock in a transaction dated Monday, August 8th. The stock was sold at an average price of $67.34, for a total value of $134,680.00. Following the completion of the transaction, the vice president now directly owns 2,000 shares of the company’s stock, valued at approximately $134,680. The disclosure for this sale can be found here. 13.20% of the stock is owned by corporate insiders.
A number of institutional investors have recently added to or reduced their stakes in the company. Loomis Sayles & Co. L P boosted its position in Cerner Corp. by 56.7% in the first quarter. Loomis Sayles & Co. L P now owns 6,953,349 shares of the company’s stock worth $368,249,000 after buying an additional 2,517,398 shares during the last quarter. Emerald Acquisition Ltd. acquired a new position in Cerner Corp. during the second quarter worth $98,316,000. Global Thematic Partners LLC acquired a new position in Cerner Corp. during the second quarter worth $94,714,000. Manning & Napier Advisors LLC boosted its position in Cerner Corp. by 22.5% in the second quarter. Manning & Napier Advisors LLC now owns 8,496,202 shares of the company’s stock worth $497,876,000 after buying an additional 1,561,040 shares during the last quarter. Finally, Generation Investment Management LLP boosted its position in Cerner Corp. by 16.3% in the second quarter. Generation Investment Management LLP now owns 10,894,749 shares of the company’s stock worth $638,432,000 after buying an additional 1,527,317 shares during the last quarter. 81.41% of the stock is owned by institutional investors.
About Cerner Corp.
Cerner Corporation 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. Its segments include Domestic and Global. The Domestic segment includes the business activity in the United States.
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