Cerner Corp. (CERN) Stock Rating Upgraded by Zacks Investment Research
Cerner Corp. (NASDAQ:CERN) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Monday.
According to Zacks, “Cerner reported tepid third quarter 2016 results, missing the Zacks Consensus Estimates on both counts. Also, the company lowered the revenue guidance for 2016 owing to lower hardware revenues. We believe that the company 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. However, the HCIT market is highly competitive, which exerts considerable pressure on both pricing and margins. Moreover, a growing proportion of low-margin services and technology resale may affect margins. Meanwhile, stringent hospital budgets exert further pressure on pricing.”
A number of other research firms also recently issued reports on CERN. Bank of America Corp. initiated coverage on shares of Cerner Corp. in a research report on Monday, September 19th. They issued a “neutral” rating and a $67.00 price target on the stock. Barclays PLC raised their price target on shares of Cerner Corp. from $55.00 to $67.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 3rd. Oppenheimer Holdings Inc. reiterated an “outperform” rating and issued a $67.00 price objective on shares of Cerner Corp. in a research report on Friday, October 14th. Cowen and Company downgraded 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 research report on Thursday, September 8th. Finally, Vetr upgraded shares of Cerner Corp. from a “sell” rating to a “hold” rating and set a $64.78 price objective on the stock in a research report on Monday, August 15th. One research analyst has rated the stock with a sell rating, twelve have given a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the company. Cerner Corp. has a consensus rating of “Buy” and an average price target of $65.11.
Cerner Corp. (NASDAQ:CERN) opened at 49.20 on Monday. Cerner Corp. has a 12 month low of $48.04 and a 12 month high of $67.50. The firm’s 50-day moving average is $57.78 and its 200 day moving average is $59.33. The firm has a market capitalization of $16.70 billion, a price-to-earnings ratio of 26.02 and a beta of 1.11.
Cerner Corp. (NASDAQ:CERN) last posted its quarterly earnings results on Tuesday, November 1st. The company reported $0.59 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.60 by $0.01. Cerner Corp. had a return on equity of 18.39% and a net margin of 13.85%. The business earned $1.19 billion during the quarter, compared to the consensus estimate of $1.24 billion. During the same quarter in the previous year, the business posted $0.54 earnings per share. The company’s quarterly revenue was up 5.1% compared to the same quarter last year. Equities analysts predict that Cerner Corp. will post $2.30 earnings per share for the current year.
In other Cerner Corp. news, Director Linda M. Dillman sold 6,000 shares of Cerner Corp. stock in a transaction that occurred on Tuesday, September 6th. The shares were 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 can be accessed through the SEC website. Also, Director William D. Zollars sold 10,000 shares of Cerner Corp. stock in a transaction that occurred on Monday, November 7th. The shares were sold at an average price of $51.50, for a total transaction of $515,000.00. The disclosure for this sale can be found here. 13.20% of the stock is currently owned by company insiders.
A number of hedge funds have recently bought and sold shares of CERN. Johnson Financial Group Inc. boosted its stake 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 worth $111,000 after buying an additional 516 shares during the last quarter. Mycio Wealth Partners LLC boosted its stake 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 worth $117,000 after buying an additional 501 shares during the last quarter. Alpha Windward LLC boosted its stake 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 worth $121,000 after buying an additional 44 shares during the last quarter. NN Investment Partners Holdings N.V. boosted its stake 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 worth $122,000 after buying an additional 300 shares during the last quarter. Finally, Acrospire Investment Management LLC boosted its stake in shares of Cerner Corp. by 5.0% in the second quarter. Acrospire Investment Management LLC now owns 2,100 shares of the company’s stock worth $123,000 after buying an additional 100 shares during the last quarter. Hedge funds and other institutional investors own 82.43% of the company’s stock.
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.
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