Cerner Corporation (CERN) Stock Rating Lowered by Zacks Investment Research
Zacks Investment Research cut shares of Cerner Corporation (NASDAQ:CERN) from a hold rating to a sell rating in a research note issued to investors on Tuesday morning.
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 research analysts also recently commented on the company. KeyCorp reaffirmed a buy rating and set a $76.00 target price on shares of Cerner Corporation in a report on Friday, September 22nd. Royal Bank Of Canada began coverage on Cerner Corporation in a report on Tuesday, September 19th. They set a top pick rating and a $84.00 target price on the stock. Canaccord Genuity reaffirmed a buy rating and set a $69.00 target price on shares of Cerner Corporation in a report on Wednesday, September 6th. Robert W. Baird reaffirmed a hold rating and set a $67.00 target price on shares of Cerner Corporation in a report on Thursday, August 31st. Finally, BidaskClub raised Cerner Corporation from a sell rating to a hold rating in a report on Saturday, August 19th. One equities research analyst has rated the stock with a sell rating, fourteen have issued a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company’s stock. The company has an average rating of Hold and an average target price of $67.11.
Cerner Corporation (NASDAQ:CERN) traded up 0.76% during trading on Tuesday, reaching $71.32. The company’s stock had a trading volume of 1,705,995 shares. The firm has a 50 day moving average price of $66.04 and a 200-day moving average price of $63.61. The stock has a market cap of $23.65 billion, a price-to-earnings ratio of 36.04 and a beta of 0.95. Cerner Corporation has a 52-week low of $47.01 and a 52-week high of $72.27.
Cerner Corporation (NASDAQ:CERN) last announced its earnings results on Thursday, July 27th. The company reported $0.56 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.57 by ($0.01). The company had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.30 billion. Cerner Corporation had a return on equity of 18.18% and a net margin of 13.47%. The firm’s quarterly revenue was up 6.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.58 earnings per share. On average, analysts expect that Cerner Corporation will post $2.50 earnings per share for the current year.
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In other Cerner Corporation news, SVP Randy D. Sims sold 60,000 shares of the business’s stock in a transaction that occurred on Friday, September 1st. The stock was sold at an average price of $68.03, for a total transaction of $4,081,800.00. Following the completion of the sale, the senior vice president now directly owns 60,890 shares of the company’s stock, valued at approximately $4,142,346.70. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Michael Nill sold 99,470 shares of the business’s stock in a transaction that occurred on Wednesday, September 13th. The stock was sold at an average price of $70.45, for a total value of $7,007,661.50. The disclosure for this sale can be found here. Insiders have sold a total of 371,583 shares of company stock valued at $24,758,191 over the last three months. Corporate insiders own 13.20% of the company’s stock.
A number of institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. increased its holdings in Cerner Corporation by 3.1% during the 2nd 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% during the 2nd quarter. BlackRock Inc. now owns 18,436,042 shares of the company’s stock worth $1,225,441,000 after purchasing an additional 137,320 shares in the last quarter. Bank of New York Mellon Corp increased its holdings in Cerner Corporation by 19.0% during 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 purchasing an additional 2,800,955 shares in the last quarter. State Street Corp increased its holdings in Cerner Corporation by 1.8% during the 1st quarter. State Street Corp now owns 12,593,837 shares of the company’s stock worth $741,147,000 after purchasing an additional 228,570 shares in the last quarter. Finally, Fiduciary Management Inc. WI increased its holdings in Cerner Corporation by 63.2% during the 1st quarter. Fiduciary Management Inc. WI now owns 8,241,408 shares of the company’s stock worth $485,007,000 after purchasing an additional 3,192,338 shares in the last quarter. 78.92% of the stock is owned by hedge funds and other institutional investors.
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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