Cerner Corporation (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, October 17th. The brokerage presently has a $81.00 price objective on the stock. Zacks Investment Research‘s target price indicates a potential upside of 23.13% from the stock’s previous close.
According to Zacks, “Earnings estimates for Cerner Corporation for the third quarter have been going down of late. The company faces currency headwind and macroeconomic challenges. Unfavorable currency translation is expected to weigh on its sales and earnings in the third quarter. In recent times System sales witnessed a major deterioration owing to a decline in technology resale. Furthermore, the HCIT market is highly competitive, which exerts considerable pressure on both pricing and margins. 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. However, a growing proportion of low-margin services and technology resale may affect margins. Meanwhile, stringent hospital budgets exert pressure on pricing.”
Several other equities research analysts also recently weighed in on the stock. Canaccord Genuity reaffirmed a “buy” rating and issued a $69.00 price target on shares of Cerner Corporation in a research note on Wednesday, September 6th. BidaskClub raised shares of Cerner Corporation from a “buy” rating to a “strong-buy” rating in a research report on Tuesday, June 27th. Piper Jaffray Companies reissued a “buy” rating and set a $77.00 target price on shares of Cerner Corporation in a research report on Thursday, October 12th. Robert W. Baird reissued a “hold” rating and set a $67.00 target price on shares of Cerner Corporation in a research report on Thursday, August 31st. Finally, KeyCorp restated a “buy” rating and set a $76.00 price target on shares of Cerner Corporation in a report on Friday, September 22nd. One equities research analyst has rated the stock with a sell rating, fourteen have issued a hold rating and nine have issued a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus target price of $68.80.
Shares of Cerner Corporation (CERN) traded up $0.35 during trading on Tuesday, reaching $65.79. 817,147 shares of the company’s stock were exchanged, compared to its average volume of 2,320,000. Cerner Corporation has a 1 year low of $47.01 and a 1 year high of $73.86. The company has a debt-to-equity ratio of 0.11, a current ratio of 2.77 and a quick ratio of 2.75. The firm has a market capitalization of $21,820.00, a price-to-earnings ratio of 28.95, a P/E/G ratio of 2.10 and a beta of 0.93.
Cerner Corporation (NASDAQ:CERN) last issued its quarterly earnings results on Thursday, October 26th. The company reported $0.61 EPS for the quarter, missing analysts’ consensus estimates of $0.62 by ($0.01). Cerner Corporation had a return on equity of 18.03% and a net margin of 13.37%. The business had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same quarter last year, the firm posted $0.59 EPS. Cerner Corporation’s revenue for the quarter was up 7.7% on a year-over-year basis. research analysts expect that Cerner Corporation will post 2.26 earnings per share for the current year.
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In related news, Chairman Clifford W. Illig sold 118,113 shares of the business’s stock in a transaction on Friday, August 11th. The shares were sold at an average price of $62.03, for a total value of $7,326,549.39. Following the sale, the chairman now owns 1,229,719 shares in the company, valued at $76,279,469.57. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Michael Nill sold 99,470 shares of the business’s stock in a transaction on Wednesday, September 13th. The shares were sold at an average price of $70.45, for a total transaction of $7,007,661.50. The disclosure for this sale can be found here. Insiders sold 371,583 shares of company stock worth $24,758,191 in the last 90 days. 13.20% of the stock is currently owned by company insiders.
A number of institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. raised its holdings in Cerner Corporation by 3.1% in the second quarter. Vanguard Group Inc. now owns 29,296,545 shares of the company’s stock worth $1,947,341,000 after purchasing an additional 876,919 shares in the last quarter. BlackRock Inc. increased its holdings in Cerner Corporation by 0.8% in the 2nd quarter. BlackRock Inc. now owns 18,436,042 shares of the company’s stock worth $1,225,441,000 after buying an additional 137,320 shares during the period. Bank of New York Mellon Corp increased its holdings in Cerner Corporation by 19.0% in the 2nd quarter. Bank of New York Mellon Corp now owns 17,546,618 shares of the company’s stock worth $1,166,325,000 after buying an additional 2,800,955 shares during the period. State Street Corp increased its holdings in Cerner Corporation by 1.8% in the 1st quarter. State Street Corp now owns 12,593,837 shares of the company’s stock worth $741,147,000 after buying an additional 228,570 shares during the period. Finally, Fiduciary Management Inc. WI increased its holdings in Cerner Corporation by 63.2% in the 1st quarter. Fiduciary Management Inc. WI now owns 8,241,408 shares of the company’s stock worth $485,007,000 after buying an additional 3,192,338 shares during the period. Institutional investors and hedge funds own 78.64% of the company’s stock.
About Cerner Corporation
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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