Zacks Investment Research upgraded shares of Cerner Corp. (NASDAQ:CERN) from a hold rating to a buy rating in a report published on Tuesday morning. The firm currently has $69.00 price objective on the stock.
According to Zacks, “We believe that Cerner has growth opportunities in the revenue cycle management (RCM), Population Health and ambulatory market based on its product strength and enviable track record. Additionally, growing percentage of higher margin software in the business mix is expected to drive margins. Bookings will be key metric to watch for over the next few quarters. For the current year Zacks Consensus Estimate inched up by a penny in the last two months and is currently pegged at $2.20 per share. Meanwhile Cerner reported strong second quarter 2016 results, beating the Zacks Consensus Estimates on both lines. Notably, the HCIT (Health care and Information Technology) market is forecasted to witness stupendous growth in the coming quarters, and Cerner is one of the largest pure-play HCIT companies, a major positive in our view. However, this market is highly competitive, which exerts considerable pressure on both pricing and margins. In fact stringent hospita”
Several other research firms have also recently weighed in on CERN. Canaccord Genuity reissued a buy rating and issued a $68.00 price objective on shares of Cerner Corp. in a research report on Sunday, September 11th. Wells Fargo & Co. reissued a buy rating on shares of Cerner Corp. in a research report on Sunday, June 26th. Piper Jaffray Cos. reissued an overweight rating and issued a $81.00 price objective on shares of Cerner Corp. in a research report on Monday, August 29th. Jefferies Group reissued a buy rating on shares of Cerner Corp. in a research report on Friday, June 10th. Finally, Deutsche Bank AG reduced their price objective on Cerner Corp. from $67.00 to $66.00 and set a buy rating for the company in a research report on Wednesday, August 3rd. Nine analysts have rated the stock with a hold rating, sixteen have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The company has an average rating of Buy and an average target price of $66.35.
Cerner Corp. (NASDAQ:CERN) opened at 61.13 on Tuesday. The stock’s 50 day moving average is $63.05 and its 200 day moving average is $59.13. The company has a market cap of $20.64 billion, a price-to-earnings ratio of 33.57 and a beta of 0.79. Cerner Corp. has a 52-week low of $49.59 and a 52-week high of $68.31.
Cerner Corp. (NASDAQ:CERN) last announced its quarterly earnings results on Tuesday, August 2nd. The company reported $0.58 EPS for the quarter, beating the consensus estimate of $0.57 by $0.01. Cerner Corp. had a return on equity of 18.57% and a net margin of 13.53%. The company had revenue of $1.22 billion for the quarter, compared to the consensus estimate of $1.21 billion. During the same quarter last year, the company posted $0.52 earnings per share. The company’s revenue for the quarter was up 8.0% compared to the same quarter last year. On average, analysts predict that Cerner Corp. will post $2.36 earnings per share for the current fiscal year.
In other Cerner Corp. news, EVP Julie M. Wilson sold 46,923 shares of the firm’s stock in a transaction dated Monday, August 8th. The stock was sold at an average price of $67.27, for a total transaction of $3,156,510.21. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, VP Michael R. Battaglioli sold 2,000 shares of the firm’s stock in a transaction dated Monday, August 8th. The stock was sold at an average price of $67.34, for a total value of $134,680.00. Following the transaction, the vice president now owns 2,000 shares in the company, valued at approximately $134,680. The disclosure for this sale can be found here. 13.20% of the stock is owned by corporate insiders.
Institutional investors have recently modified their holdings of the company. Liberty Capital Management Inc. boosted its position in shares of Cerner Corp. by 10.8% in the third quarter. Liberty Capital Management Inc. now owns 35,311 shares of the company’s stock worth $2,153,000 after buying an additional 3,440 shares during the period. BNP Paribas Arbitrage SA boosted its position in shares of Cerner Corp. by 401.1% in the third quarter. BNP Paribas Arbitrage SA now owns 156,519 shares of the company’s stock worth $9,665,000 after buying an additional 125,285 shares during the period. Eqis Capital Management Inc. bought a new position in shares of Cerner Corp. during the third quarter worth about $281,000. Washington Trust Bank boosted its position in shares of Cerner Corp. by 0.4% in the third quarter. Washington Trust Bank now owns 3,664 shares of the company’s stock worth $226,000 after buying an additional 13 shares during the period. Finally, Williams Jones & Associates LLC boosted its position in shares of Cerner Corp. by 17.8% in the second quarter. Williams Jones & Associates LLC now owns 18,347 shares of the company’s stock worth $1,075,000 after buying an additional 2,767 shares during the period. Hedge funds and other institutional investors own 81.39% of the company’s stock.
Cerner Corp. Company Profile
Cerner Corporation 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. Its segments include Domestic and Global. The Domestic segment includes the business activity in the United States.
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