Zacks Investment Research upgraded shares of Cerner (NASDAQ:CERN) from a sell rating to a hold rating in a research report report published on Wednesday morning.
According to Zacks, “Cerner saw consistent growth in its Electronic Health Record platform and Revenue Cycle Management solutions. Cerner Millennium and Cerner ITWorks continue to drive results. Growth in Licensed Software and Professional services is noteworthy. Cerner’s CommunityWorks organization continues to perform well in the small hospital market space. Solid international growth also raises hopes. Management is optimistic about solid booking contributions from Australia, Canada, Middle East and Europe in the second half of 2018. A positive guidance for 2018 is encouraging. In recent times, Cerner has seen a slew of developments. However, the company’s Subscription and Reimbursed travel revenues are declining. A significant drop in operating income and margin is worrisome. High long-term debt is another concern. Competition in the global MedTech space adds to the woes. Cerner underperformed its industry in a year’s time.”
Other research analysts have also issued reports about the stock. Canaccord Genuity raised their target price on shares of Cerner from $64.00 to $71.00 and gave the stock a buy rating in a research note on Friday, August 3rd. BidaskClub upgraded shares of Cerner from a sell rating to a hold rating in a report on Thursday, September 27th. Stifel Nicolaus raised their price target on shares of Cerner from $62.00 to $65.00 and gave the stock a hold rating in a report on Wednesday, July 25th. KeyCorp raised their price target on shares of Cerner from $74.00 to $76.00 and gave the stock an overweight rating in a report on Monday, August 20th. Finally, Piper Jaffray Companies restated a buy rating and set a $71.00 price target on shares of Cerner in a report on Friday, August 3rd. Ten research analysts have rated the stock with a hold rating and ten have given a buy rating to the stock. The stock presently has a consensus rating of Buy and an average price target of $69.98.
Cerner (NASDAQ:CERN) last released its earnings results on Thursday, August 2nd. The company reported $0.62 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.60 by $0.02. Cerner had a net margin of 15.72% and a return on equity of 14.89%. The business had revenue of $1.37 billion for the quarter, compared to analyst estimates of $1.33 billion. During the same period last year, the company posted $0.61 EPS. The business’s revenue was up 5.9% on a year-over-year basis. On average, equities analysts anticipate that Cerner will post 2.28 earnings per share for the current fiscal year.
In related news, President Zane M. Burke sold 151,818 shares of Cerner stock in a transaction that occurred on Tuesday, August 28th. The shares were sold at an average price of $65.44, for a total value of $9,934,969.92. Following the completion of the sale, the president now owns 37,418 shares in the company, valued at approximately $2,448,633.92. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Vice Chairman Clifford W. Illig sold 378,900 shares of Cerner stock in a transaction that occurred on Thursday, August 9th. The shares were sold at an average price of $66.46, for a total transaction of $25,181,694.00. Following the completion of the sale, the insider now owns 1,229,719 shares of the company’s stock, valued at approximately $81,727,124.74. The disclosure for this sale can be found here. Insiders have sold a total of 1,270,870 shares of company stock valued at $82,486,031 in the last 90 days. Insiders own 4.71% of the company’s stock.
Institutional investors have recently bought and sold shares of the stock. CIBC Asset Management Inc increased its holdings in Cerner by 5.1% in the 2nd quarter. CIBC Asset Management Inc now owns 44,151 shares of the company’s stock valued at $2,640,000 after purchasing an additional 2,149 shares during the last quarter. Zebra Capital Management LLC acquired a new stake in Cerner in the 2nd quarter valued at approximately $929,000. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Cerner in the 2nd quarter valued at approximately $907,000. Advisors Capital Management LLC increased its holdings in Cerner by 6.6% in the 3rd quarter. Advisors Capital Management LLC now owns 59,880 shares of the company’s stock valued at $3,857,000 after purchasing an additional 3,696 shares during the last quarter. Finally, Andra AP fonden acquired a new stake in Cerner in the 2nd quarter valued at approximately $6,398,000. Hedge funds and other institutional investors own 75.94% of the company’s stock.
Cerner Company Profile
Cerner Corporation provides health care information technology solutions and services in the United States and internationally. The company offers Cerner Millennium architecture, a person-centric computing framework, which includes clinical, financial, and management information systems that allow providers to access an individual's electronic health record (EHR) at the point of care, and organizes and delivers information for physicians, nurses, laboratory technicians, pharmacists, front- and back-office professionals, and consumers.
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