Zacks Investment Research Upgrades Cerner (CERN) to Buy
Zacks Investment Research upgraded shares of Cerner (NASDAQ:CERN) from a hold rating to a buy rating in a research note published on Wednesday morning. They currently have $71.00 price objective on the stock.
According to Zacks, “Cerner ended the fourth quarter of 2017 on an unfavorable note, missing the Zacks Consensus Estimate on both counts. However, the company witnessed record bookings in the quarter and also a strong cash flow. 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. The company performed impressively in the small hospital markets lately. On the flipside, lower margins on technology resale, resulting from higher mix of device resale is a concern. Additionally, Cerner has been facing macroeconomic challenges along with cutthroat competition in niche space. Expensive valuation and surging operating expenses also add to the woes.”
A number of other brokerages have also recently commented on CERN. SunTrust Banks cut Cerner from a buy rating to a hold rating in a research report on Tuesday, January 16th. They noted that the move was a valuation call. Royal Bank of Canada reaffirmed a buy rating on shares of Cerner in a research report on Wednesday, October 25th. Jefferies Group set a $79.00 price target on Cerner and gave the company a buy rating in a research report on Friday, October 13th. Piper Jaffray Companies reaffirmed a buy rating and set a $77.00 price target on shares of Cerner in a research report on Thursday, October 12th. Finally, Cantor Fitzgerald reaffirmed a buy rating and set a $77.00 price target on shares of Cerner in a research report on Tuesday, October 10th. One investment analyst has rated the stock with a sell rating, fifteen have assigned a hold rating and eight have assigned a buy rating to the stock. The stock has an average rating of Hold and a consensus price target of $65.89.
Cerner (NASDAQ:CERN) last posted its quarterly earnings data on Tuesday, February 6th. The company reported $0.58 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.61 by ($0.03). Cerner had a return on equity of 16.82% and a net margin of 16.86%. The business had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.33 billion. During the same period in the prior year, the firm posted $0.61 EPS. The firm’s revenue for the quarter was up 4.5% on a year-over-year basis. equities analysts expect that Cerner will post 2.47 EPS for the current year.
In related news, Chairman Clifford W. Illig sold 530,000 shares of the business’s stock in a transaction on Monday, November 20th. The stock was sold at an average price of $65.54, for a total transaction of $34,736,200.00. Following the sale, the chairman now directly owns 1,229,719 shares in the company, valued at approximately $80,595,783.26. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, President Zane M. Burke sold 50,000 shares of the business’s stock in a transaction on Wednesday, December 13th. The shares were sold at an average price of $70.00, for a total value of $3,500,000.00. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 784,000 shares of company stock worth $51,926,960. 13.11% of the stock is currently owned by corporate insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the business. Dimensional Fund Advisors LP increased its stake in Cerner by 7.4% in the 2nd quarter. Dimensional Fund Advisors LP now owns 697,200 shares of the company’s stock worth $46,342,000 after acquiring an additional 47,812 shares during the last quarter. State of Wisconsin Investment Board increased its stake in Cerner by 16.8% in the 3rd quarter. State of Wisconsin Investment Board now owns 425,712 shares of the company’s stock worth $30,362,000 after acquiring an additional 61,326 shares during the last quarter. Harrington Investments INC bought a new position in Cerner in the 3rd quarter worth about $1,675,000. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. increased its stake in Cerner by 5.7% in the 3rd quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 45,080 shares of the company’s stock worth $3,215,000 after acquiring an additional 2,426 shares during the last quarter. Finally, Shell Asset Management Co. increased its stake in Cerner by 201.0% in the 3rd quarter. Shell Asset Management Co. now owns 57,749 shares of the company’s stock worth $3,440,000 after acquiring an additional 38,565 shares during the last quarter. Institutional investors and hedge funds own 81.99% 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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