Cerner (CERN) Raised to “Buy” at Zacks Investment Research
Cerner (NASDAQ:CERN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Wednesday. The firm currently has a $71.00 price objective on the stock. Zacks Investment Research‘s price objective indicates a potential upside of 15.98% from the stock’s current price.
According to Zacks, “Cerner ended the fourth quarter of 2017 on an unfavorable note, missing the Zacks Consensus Estimate on both counts. However, the company witnessed record bookings in the quarter and also a strong cash flow. 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. The company performed impressively in the small hospital markets lately. On the flipside, lower margins on technology resale, resulting from higher mix of device resale is a concern. Additionally, Cerner has been facing macroeconomic challenges along with cutthroat competition in niche space. Expensive valuation and surging operating expenses also add to the woes.”
Other equities analysts also recently issued reports about the stock. Royal Bank of Canada restated a “buy” rating on shares of Cerner in a report on Wednesday, October 25th. SunTrust Banks restated a “buy” rating and set a $79.00 target price on shares of Cerner in a report on Thursday, October 19th. Jefferies Group set a $79.00 target price on shares of Cerner and gave the stock a “buy” rating in a report on Friday, October 13th. Piper Jaffray Companies restated a “buy” rating and set a $77.00 target price on shares of Cerner in a report on Thursday, October 12th. Finally, Cantor Fitzgerald restated a “buy” rating and set a $77.00 target price on shares of Cerner in a report on Tuesday, October 10th. One analyst has rated the stock with a sell rating, fifteen have assigned a hold rating and eight have issued a buy rating to the company. Cerner currently has a consensus rating of “Hold” and a consensus target price of $65.89.
Cerner (NASDAQ:CERN) last issued its earnings results on Tuesday, February 6th. The company reported $0.58 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.61 by ($0.03). The firm had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.33 billion. Cerner had a return on equity of 16.82% and a net margin of 16.86%. Cerner’s quarterly revenue was up 4.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.61 earnings per share. analysts anticipate that Cerner will post 2.48 EPS for the current year.
In other news, VP Michael R. Battaglioli sold 4,000 shares of the business’s stock in a transaction dated Wednesday, December 13th. The shares were sold at an average price of $69.89, for a total value of $279,560.00. Following the completion of the sale, the vice president now owns 4,000 shares of the company’s stock, valued at $279,560. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Marc G. Naughton sold 60,000 shares of the business’s stock in a transaction dated Thursday, November 30th. The shares were sold at an average price of $70.64, for a total transaction of $4,238,400.00. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 784,000 shares of company stock valued at $51,926,960. Company insiders own 13.11% of the company’s stock.
Institutional investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP boosted its position in shares of Cerner by 7.4% in the second quarter. Dimensional Fund Advisors LP now owns 697,200 shares of the company’s stock valued at $46,342,000 after acquiring an additional 47,812 shares during the period. State of Wisconsin Investment Board boosted its position in shares of Cerner by 16.8% in the third quarter. State of Wisconsin Investment Board now owns 425,712 shares of the company’s stock valued at $30,362,000 after acquiring an additional 61,326 shares during the period. Harrington Investments INC bought a new stake in shares of Cerner in the third quarter valued at about $1,675,000. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. boosted its position in shares of Cerner by 5.7% in the third quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 45,080 shares of the company’s stock valued at $3,215,000 after acquiring an additional 2,426 shares during the period. Finally, Shell Asset Management Co. boosted its position in shares of Cerner by 201.0% in the third quarter. Shell Asset Management Co. now owns 57,749 shares of the company’s stock valued at $3,440,000 after acquiring an additional 38,565 shares during the period. 81.99% of the stock is owned by institutional investors.
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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