Cerner Corp. (CERN) Stock Rating Lowered by Zacks Investment Research
Cerner Corp. (NASDAQ:CERN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued 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 equities research analysts have also recently commented on the company. Oppenheimer Holdings Inc. reiterated an “outperform” rating and set a $67.00 target price on shares of Cerner Corp. in a research note on Friday, October 14th. Bank of America Corp. assumed coverage on Cerner Corp. in a research note on Monday, September 19th. They set a “neutral” rating and a $67.00 target price on the stock. Canaccord Genuity reiterated a “buy” rating and set a $68.00 target price on shares of Cerner Corp. in a research note on Sunday, September 11th. Cowen and Company cut Cerner Corp. from an “outperform” rating to a “market perform” rating and set a $65.00 target price on the stock. in a research note on Thursday, September 8th. Finally, Stifel Nicolaus assumed coverage on Cerner Corp. in a research note on Wednesday, August 31st. They set a “hold” rating on the stock. Ten analysts have rated the stock with a hold rating, fifteen have issued a buy rating and one has issued a strong buy rating to the stock. The company presently has a consensus rating of “Buy” and an average target price of $66.35.
Cerner Corp. (NASDAQ:CERN) opened at 61.15 on Monday. The company has a market capitalization of $20.65 billion, a PE ratio of 33.58 and a beta of 0.79. Cerner Corp. has a 12-month low of $49.59 and a 12-month high of $68.31. The stock has a 50 day moving average of $62.42 and a 200 day moving average of $59.55.
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. Cerner Corp. had a return on equity of 18.57% and a net margin of 13.53%. The business had revenue of $1.22 billion for the quarter, compared to analysts’ expectations of $1.21 billion. During the same period last year, the business earned $0.52 EPS. The business’s revenue was up 8.0% on a year-over-year basis. On average, equities research analysts predict that Cerner Corp. will post $2.36 EPS for the current year.
In other Cerner Corp. news, Director Linda M. Dillman sold 6,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 6th. The stock was sold at an average price of $64.68, for a total value of $388,080.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Michael R. Battaglioli sold 2,000 shares of the business’s stock in a transaction that occurred on Monday, August 8th. The shares were sold at an average price of $67.34, for a total value of $134,680.00. Following the completion of the sale, the vice president now 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.
Hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. increased its stake in shares of Cerner Corp. by 1.3% in the second quarter. Vanguard Group Inc. now owns 26,886,495 shares of the company’s stock valued at $1,575,549,000 after buying an additional 357,578 shares during the last quarter. Generation Investment Management LLP increased its stake in shares of Cerner Corp. by 16.3% in the second quarter. Generation Investment Management LLP now owns 10,894,749 shares of the company’s stock valued at $638,432,000 after buying an additional 1,527,317 shares during the last quarter. Loomis Sayles & Co. L P increased its stake in shares of Cerner Corp. by 26.1% in the second quarter. Loomis Sayles & Co. L P now owns 8,765,723 shares of the company’s stock valued at $513,671,000 after buying an additional 1,812,374 shares during the last quarter. Manning & Napier Advisors LLC increased its stake in shares of Cerner Corp. by 22.5% in the second quarter. Manning & Napier Advisors LLC now owns 8,496,202 shares of the company’s stock valued at $497,876,000 after buying an additional 1,561,040 shares during the last quarter. Finally, BlackRock Institutional Trust Company N.A. increased its stake in shares of Cerner Corp. by 0.3% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 7,657,866 shares of the company’s stock valued at $448,751,000 after buying an additional 22,386 shares during the last quarter. Hedge funds and other institutional investors own 81.41% 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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