Cerner Corp. (CERN) Rating Increased to Hold at 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 Thursday.
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 equities analysts have also weighed in on CERN. Bank of America Corp. lowered Cerner Corp. from a “neutral” rating to an “underperform” rating in a research note on Monday, November 7th. Canaccord Genuity reiterated a “buy” rating and set a $68.00 price objective on shares of Cerner Corp. in a research note on Sunday, September 11th. Vetr lowered Cerner Corp. from a “hold” rating to a “sell” rating and set a $64.78 price objective for the company. in a research note on Monday, August 8th. Stifel Nicolaus initiated coverage on Cerner Corp. in a research note on Wednesday, August 31st. They set a “hold” rating for the company. Finally, Piper Jaffray Cos. reiterated an “overweight” rating and set a $81.00 price objective on shares of Cerner Corp. in a research note on Monday, August 29th. One analyst has rated the stock with a sell rating, twelve have given a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Cerner Corp. has a consensus rating of “Buy” and a consensus price target of $64.88.
Shares of Cerner Corp. (NASDAQ:CERN) remained flat at $50.51 during trading on Thursday. 4,275,142 shares of the company were exchanged. The company has a market capitalization of $17.15 billion, a P/E ratio of 26.71 and a beta of 1.11. Cerner Corp. has a 52-week low of $48.04 and a 52-week high of $67.50. The firm has a 50 day moving average price of $55.80 and a 200-day moving average price of $59.05.
Cerner Corp. (NASDAQ:CERN) last issued its quarterly earnings results on Tuesday, November 1st. The company reported $0.59 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 firm had revenue of $1.19 billion for the quarter, compared to analyst estimates of $1.24 billion. During the same period in the prior year, the firm posted $0.54 EPS. The business’s revenue was up 5.1% compared to the same quarter last year. On average, analysts forecast that Cerner Corp. will post $2.30 earnings per share for the current fiscal year.
In other news, Director William D. Zollars sold 10,000 shares of the company’s stock in a transaction on Monday, November 7th. The stock was sold at an average price of $51.50, for a total transaction of $515,000.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Linda M. Dillman sold 6,000 shares of the company’s stock in a transaction on Tuesday, September 6th. The stock was sold at an average price of $64.68, for a total value of $388,080.00. The disclosure for this sale can be found here. Insiders own 13.20% of the company’s stock.
Hedge funds have recently bought and sold shares of the company. ProVise Management Group LLC bought a new stake in Cerner Corp. during the second quarter worth $266,000. Trillium Asset Management LLC raised its stake in Cerner Corp. by 111.8% in the second quarter. Trillium Asset Management LLC now owns 211,718 shares of the company’s stock worth $12,407,000 after buying an additional 111,761 shares in the last quarter. PGGM Investments bought a new stake in Cerner Corp. during the second quarter worth $32,321,000. Commerce Bank raised its position in Cerner Corp. by 2.6% in the second quarter. Commerce Bank now owns 727,256 shares of the company’s stock valued at $42,618,000 after buying an additional 18,101 shares during the period. Finally, South Texas Money Management Ltd. raised its position in Cerner Corp. by 0.6% in the second quarter. South Texas Money Management Ltd. now owns 573,341 shares of the company’s stock valued at $33,598,000 after buying an additional 3,357 shares during the period. 82.78% of the stock is currently owned by institutional investors and hedge funds.
ILLEGAL ACTIVITY WARNING: This piece of content was published by The Cerbat Gem and is owned by of The Cerbat Gem. If you are viewing this piece of content on another domain, it was copied illegally and republished in violation of United States and international copyright and trademark laws. The original version of this piece of content can be read at https://www.thecerbatgem.com/2016/11/24/cerner-corp-cern-rating-increased-to-hold-at-zacks-investment-research.html.
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.