Cerner (CERN) Raised to Hold at Zacks Investment Research
Cerner (NASDAQ:CERN) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “Cerner Corporation currently rides on its solid international growth, which is likely to boost with the company’s prospects in Australia, U.K. Ireland and Germany. 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. Further, the company recently reported a suite of developments in its EHR platform. However, the company has been grappling with software issues and technology resale. Lesser-than-expected subscription bookings mar Cerner’s licensed software sales recently. A downbeat guidance indicates looming concerns ahead. Further, lower margins on technology resale, resulting from higher mix of device resale are a concern. Cerner underperformed its industry in a year's time.”
A number of other equities research analysts have also issued reports on CERN. Cantor Fitzgerald reissued a “buy” rating and issued a $80.00 price objective on shares of Cerner in a report on Monday, March 5th. BidaskClub raised shares of Cerner from a “strong sell” rating to a “sell” rating in a report on Thursday, March 8th. Stifel Nicolaus reissued a “hold” rating and issued a $71.00 price objective (up previously from $69.00) on shares of Cerner in a report on Thursday, March 8th. Argus lowered shares of Cerner from a “buy” rating to a “hold” rating and upped their price objective for the company from $54.49 to $64.65 in a report on Tuesday, March 13th. Finally, William Blair reissued a “buy” rating on shares of Cerner in a report on Thursday, March 29th. Ten analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average price target of $68.51.
Cerner (NASDAQ:CERN) last announced its quarterly earnings data on Wednesday, May 2nd. The company reported $0.58 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $0.58. Cerner had a net margin of 16.50% and a return on equity of 15.80%. The firm had revenue of $1.29 billion during the quarter, compared to analyst estimates of $1.34 billion. During the same quarter in the prior year, the firm posted $0.59 earnings per share. Cerner’s quarterly revenue was up 2.6% on a year-over-year basis. equities research analysts predict that Cerner will post 2.28 earnings per share for the current fiscal year.
In other Cerner news, Vice Chairman Clifford W. Illig sold 3,000 shares of the stock in a transaction dated Monday, May 7th. The shares were sold at an average price of $58.32, for a total transaction of $174,960.00. Following the completion of the transaction, the insider now owns 1,229,719 shares of the company’s stock, valued at $71,717,212.08. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Chairman David Brent Shafer sold 13,348 shares of the stock in a transaction dated Monday, May 21st. The stock was sold at an average price of $61.36, for a total transaction of $819,033.28. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 275,848 shares of company stock valued at $16,650,169. 4.71% of the stock is currently owned by insiders.
Several hedge funds and other institutional investors have recently bought and sold shares of the company. Neville Rodie & Shaw Inc. purchased a new position in shares of Cerner in the second quarter valued at approximately $478,000. Chesapeake Wealth Management acquired a new stake in Cerner in the first quarter valued at approximately $364,000. Amalgamated Bank raised its holdings in Cerner by 10.8% in the first quarter. Amalgamated Bank now owns 42,593 shares of the company’s stock valued at $2,470,000 after acquiring an additional 4,145 shares in the last quarter. Summit Trail Advisors LLC raised its holdings in Cerner by 23.1% in the first quarter. Summit Trail Advisors LLC now owns 46,287 shares of the company’s stock valued at $1,980,000 after acquiring an additional 8,679 shares in the last quarter. Finally, Massmutual Trust Co. FSB ADV raised its holdings in Cerner by 5.4% in the first quarter. Massmutual Trust Co. FSB ADV now owns 49,454 shares of the company’s stock valued at $2,868,000 after acquiring an additional 2,535 shares in the last quarter. 77.72% of the stock is owned by institutional investors and hedge funds.
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Cerner Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cerner and related companies with MarketBeat.com's FREE daily email newsletter.