Cerner (NASDAQ:CERN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “Cerner has had an impressive run on the bourses in the last year, trading above the broader industry. 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 of adding new clients. Solid growth in the HealtheIntent platform also holds promise. Additionally, a growing percentage of higher margin software in the business mix is expected to drive margins. The company performed impressively in the ambulatory and small hospital markets lately. However, Cerner has been facing macroeconomic challenges lately. Unfavorable political scenario and expensive valuation may add to worries. In recent times, Cerner’s 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.”
A number of other equities analysts have also recently commented on CERN. SunTrust Banks cut Cerner from a “buy” rating to a “hold” rating in a report on Tuesday. They noted that the move was a valuation call. Robert W. Baird reaffirmed a “buy” rating on shares of Cerner in a report on Wednesday, January 3rd. Citigroup began coverage on Cerner in a report on Thursday, January 4th. They issued a “neutral” rating on the stock. Piper Jaffray Companies reaffirmed a “buy” rating and issued a $70.00 target price on shares of Cerner in a report on Thursday, November 30th. Finally, Jefferies Group reaffirmed a “buy” rating on shares of Cerner in a report on Sunday, October 29th. Sixteen analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. The company currently has an average rating of “Hold” and an average price target of $69.83.
Cerner (NASDAQ:CERN) last announced its earnings results on Thursday, October 26th. The company reported $0.61 EPS for the quarter, missing the Zacks’ consensus estimate of $0.62 by ($0.01). Cerner had a return on equity of 18.03% and a net margin of 13.37%. The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.29 billion. During the same period in the prior year, the business posted $0.59 earnings per share. Cerner’s revenue for the quarter was up 7.7% compared to the same quarter last year. equities research analysts anticipate that Cerner will post 2.24 EPS for the current fiscal year.
In other news, President Zane M. Burke sold 50,000 shares of Cerner stock in a transaction dated Wednesday, December 13th. The stock was sold at an average price of $70.00, for a total value of $3,500,000.00. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CFO Marc G. Naughton sold 60,000 shares of Cerner stock in a transaction dated Thursday, November 30th. The stock was sold at an average price of $70.64, for a total value of $4,238,400.00. The disclosure for this sale can be found here. Over the last three months, insiders have sold 788,000 shares of company stock worth $52,190,800. Insiders own 13.11% of the company’s stock.
Several hedge funds have recently modified their holdings of the company. Vanguard Group Inc. increased its holdings in shares of Cerner 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 during the last quarter. FMR LLC increased its holdings in shares of Cerner by 0.8% in the second quarter. FMR LLC now owns 5,652,931 shares of the company’s stock worth $375,750,000 after purchasing an additional 43,521 shares during the last quarter. Capital International Investors increased its holdings in shares of Cerner by 0.3% in the third quarter. Capital International Investors now owns 4,851,296 shares of the company’s stock worth $345,994,000 after purchasing an additional 12,178 shares during the last quarter. Veritas Asset Management LLP increased its holdings in shares of Cerner by 4.8% in the third quarter. Veritas Asset Management LLP now owns 3,687,172 shares of the company’s stock worth $262,969,000 after purchasing an additional 167,900 shares during the last quarter. Finally, Legal & General Group Plc increased its holdings in shares of Cerner by 1.8% in the third quarter. Legal & General Group Plc now owns 1,477,451 shares of the company’s stock worth $105,371,000 after purchasing an additional 25,842 shares during the last quarter. 81.83% of the stock is currently owned by hedge funds and other institutional investors.
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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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