Zacks Investment Research Upgrades Cerner Corp. (CERN) to Buy
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 target price on the stock. Zacks Investment Research’s target price suggests a potential upside of 12.34% from the stock’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”
A number of other brokerages have also weighed in on CERN. Vetr lowered shares of Cerner Corp. from a “hold” rating to a “sell” rating and set a $64.78 price objective on the stock. in a report on Monday, August 8th. Deutsche Bank AG raised their price objective on shares of Cerner Corp. from $66.00 to $70.00 and gave the company a “buy” rating in a report on Monday, August 15th. JPMorgan Chase & Co. restated a “buy” rating on shares of Cerner Corp. in a report on Wednesday, August 3rd. Cowen and Company lowered shares of Cerner Corp. from an “outperform” rating to a “market perform” rating and set a $65.00 price objective on the stock. in a report on Thursday, September 8th. Finally, Stifel Nicolaus assumed coverage on shares of Cerner Corp. in a report on Wednesday, August 31st. They issued a “hold” rating on the stock. Nine investment analysts have rated the stock with a hold rating, sixteen have issued a buy rating and one has issued a strong buy rating to the company. The stock has an average rating of “Buy” and an average price target of $66.35.
Cerner Corp. (NASDAQ:CERN) traded down 0.80% during midday trading on Tuesday, reaching $60.93. 411,310 shares of the company’s stock traded hands. Cerner Corp. has a 1-year low of $49.59 and a 1-year high of $68.31. The company has a market capitalization of $20.58 billion, a PE ratio of 33.46 and a beta of 0.79. The firm’s 50 day moving average price is $63.59 and its 200-day moving average price is $58.99.
Cerner Corp. (NASDAQ:CERN) last announced its quarterly earnings data 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. Cerner Corp. had a net margin of 13.53% and a return on equity of 18.57%. The business had revenue of $1.22 billion for the quarter, compared to analyst estimates of $1.21 billion. During the same period last year, the business earned $0.52 EPS. The company’s revenue was up 8.0% on a year-over-year basis. Equities analysts expect that Cerner Corp. will post $2.36 EPS for the current year.
In other news, Vice Chairman Clifford W. Illig sold 325,705 shares of the business’s stock in a transaction that occurred on Thursday, August 18th. The shares were sold at an average price of $65.10, for a total value of $21,203,395.50. Following the completion of the transaction, the insider now owns 6,652,392 shares of the company’s stock, valued at $433,070,719.20. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, EVP Julie M. Wilson sold 46,923 shares of the business’s stock in a transaction that occurred on Monday, August 8th. The shares were sold at an average price of $67.27, for a total transaction of $3,156,510.21. The disclosure for this sale can be found here. 13.20% of the stock is currently owned by company insiders.
Several institutional investors have recently bought and sold shares of CERN. Acrospire Investment Management LLC purchased a new position in Cerner Corp. during the first quarter worth $106,000. Johnson Financial Group Inc. raised its position in Cerner Corp. by 37.8% in the second quarter. Johnson Financial Group Inc. now owns 1,882 shares of the company’s stock worth $111,000 after buying an additional 516 shares in the last quarter. Mycio Wealth Partners LLC raised its position in Cerner Corp. by 33.5% in the second quarter. Mycio Wealth Partners LLC now owns 1,997 shares of the company’s stock worth $117,000 after buying an additional 501 shares in the last quarter. Alpha Windward LLC raised its position in Cerner Corp. by 2.2% in the second quarter. Alpha Windward LLC now owns 2,061 shares of the company’s stock worth $121,000 after buying an additional 44 shares in the last quarter. Finally, NN Investment Partners Holdings N.V. raised its position in 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 worth $122,000 after buying an additional 300 shares in the last quarter. 81.39% of the stock is owned by institutional investors and hedge funds.
Cerner Corp. Company Profile
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.
Receive News & Stock Ratings for Cerner Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cerner Corp. and related stocks with our FREE daily email newsletter.