Cerner Corp. (NASDAQ:CERN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Tuesday. The firm currently has a $69.00 price target on the stock. Zacks Investment Research’s target price indicates a potential upside of 12.34% from the company’s previous close.
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”
Other equities analysts have also issued research reports about the stock. Raymond James Financial Inc. lowered shares of Cerner Corp. from an “outperform” rating to a “market perform” rating and set a $64.57 price target on the stock. in a research report on Tuesday, July 5th. Canaccord Genuity reissued a “buy” rating and issued a $68.00 price target on shares of Cerner Corp. in a research report on Sunday, September 11th. Vetr lowered shares of Cerner Corp. from a “hold” rating to a “sell” rating and set a $64.78 price target on the stock. in a research report on Monday, August 8th. Stifel Nicolaus initiated coverage on shares of Cerner Corp. in a research report on Wednesday, August 31st. They issued a “hold” rating on the stock. Finally, Bank of America Corp. initiated coverage on shares of Cerner Corp. in a research note on Monday, September 19th. They issued a “neutral” rating and a $67.00 price objective on the stock. Nine equities research analysts have rated the stock with a hold rating, sixteen have issued a buy rating and one has assigned a strong buy rating to the stock. The company presently has a consensus rating of “Buy” and an average price target of $66.35.
Shares of Cerner Corp. (NASDAQ:CERN) traded down 0.80% during mid-day trading on Tuesday, hitting $60.93. 411,310 shares of the company’s stock were exchanged. The firm has a 50 day moving average price of $63.59 and a 200-day moving average price of $58.99. Cerner Corp. has a 52 week low of $49.59 and a 52 week high of $68.31. The company has a market capitalization of $20.58 billion, a price-to-earnings ratio of 33.46 and a beta of 0.79.
Cerner Corp. (NASDAQ:CERN) last issued its quarterly earnings data on Tuesday, August 2nd. The company reported $0.58 earnings per share for the quarter, beating the consensus estimate of $0.57 by $0.01. The firm had revenue of $1.22 billion for the quarter, compared to analyst estimates of $1.21 billion. Cerner Corp. had a net margin of 13.53% and a return on equity of 18.57%. The company’s revenue for the quarter was up 8.0% on a year-over-year basis. During the same quarter last year, the firm earned $0.52 earnings per share. On average, equities analysts anticipate that Cerner Corp. will post $2.36 EPS for the current year.
In other news, VP Michael R. Battaglioli sold 2,000 shares of the business’s stock in a transaction dated Monday, August 8th. The stock was sold at an average price of $67.34, for a total transaction of $134,680.00. Following the completion of the transaction, the vice president now directly owns 2,000 shares in the company, valued at approximately $134,680. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Vice Chairman Clifford W. Illig sold 325,705 shares of the business’s stock in a transaction dated Thursday, August 18th. The stock was sold at an average price of $65.10, for a total value of $21,203,395.50. Following the transaction, the insider now owns 6,652,392 shares of the company’s stock, valued at $433,070,719.20. The disclosure for this sale can be found here. Insiders own 13.20% of the company’s stock.
Institutional investors have recently bought and sold shares of the company. Acrospire Investment Management LLC acquired a new position in shares of Cerner Corp. during the first quarter valued at about $106,000. Johnson Financial Group Inc. raised its position in shares of Cerner Corp. by 37.8% in the second quarter. Johnson Financial Group Inc. now owns 1,882 shares of the company’s stock valued at $111,000 after buying an additional 516 shares in the last quarter. Mycio Wealth Partners LLC raised its position in shares of Cerner Corp. by 33.5% in the second quarter. Mycio Wealth Partners LLC now owns 1,997 shares of the company’s stock valued at $117,000 after buying an additional 501 shares in the last quarter. Alpha Windward LLC raised its position in shares of Cerner Corp. by 2.2% in the second quarter. Alpha Windward LLC now owns 2,061 shares of the company’s stock valued at $121,000 after buying an additional 44 shares in the last quarter. Finally, NN Investment Partners Holdings N.V. raised its position in shares of Cerner Corp. by 16.8% in the second quarter. NN Investment Partners Holdings N.V. now owns 2,085 shares of the company’s stock valued at $122,000 after buying an additional 300 shares in the last quarter. Institutional investors own 81.39% of the company’s stock.
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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