“Our rating remains Overweight and our PT remains $80. Although some amount of investor skepticism regarding the company’s growth outlook continues to temper valuation levels, we do not share those concerns. Our long-term DCF model assumptions are mostly conservative, with high single-digit revenue growth and modest margin expansion. Capital spending should moderate in 2019. We think the shares offer a compelling risk/reward trade off (including the potential impact from the VA contract). Valuation Summary Cerner shares trade at a 25% discount to our DCF-based price target of $80 (including the VA contract).”,” Cantor Fitzgerald’s analyst commented.
Several other equities research analysts have also recently commented on the company. Royal Bank of Canada restated a buy rating and issued a $72.00 target price on shares of Cerner in a research note on Friday, August 3rd. KeyCorp boosted their target price on Cerner from $71.00 to $74.00 and gave the company an overweight rating in a research note on Friday, August 3rd. SunTrust Banks boosted their target price on Cerner to $65.00 and gave the company a hold rating in a research note on Monday, August 6th. BidaskClub upgraded Cerner from a sell rating to a hold rating in a research note on Friday, July 6th. Finally, Zacks Investment Research cut Cerner from a hold rating to a sell rating in a research note on Thursday, July 19th. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating and eleven have assigned a buy rating to the company. The stock presently has an average rating of Hold and a consensus target price of $71.71.
Cerner (NASDAQ:CERN) last released its quarterly earnings data on Thursday, August 2nd. The company reported $0.62 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.60 by $0.02. Cerner had a return on equity of 15.26% and a net margin of 16.06%. The business had revenue of $1.37 billion for the quarter, compared to analysts’ expectations of $1.33 billion. During the same quarter in the previous year, the business posted $0.61 EPS. Cerner’s revenue for the quarter was up 5.9% on a year-over-year basis. equities analysts expect that Cerner will post 2.28 EPS for the current fiscal year.
In other Cerner news, Director Linda M. Dillman sold 3,900 shares of the business’s stock in a transaction that occurred on Monday, August 6th. The stock was sold at an average price of $66.54, for a total transaction of $259,506.00. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, President Zane M. Burke sold 381,139 shares of the business’s stock in a transaction that occurred on Thursday, September 13th. The stock was sold at an average price of $64.05, for a total value of $24,411,952.95. Following the transaction, the president now directly owns 59,539 shares in the company, valued at approximately $3,813,472.95. The disclosure for this sale can be found here. Insiders have sold a total of 1,270,870 shares of company stock worth $82,486,031 in the last ninety days. Insiders own 4.71% of the company’s stock.
Several large investors have recently bought and sold shares of the business. BlackRock Inc. increased its position in shares of Cerner by 4.7% during the 2nd quarter. BlackRock Inc. now owns 20,778,625 shares of the company’s stock worth $1,242,353,000 after purchasing an additional 926,609 shares during the last quarter. Loomis Sayles & Co. L P increased its position in shares of Cerner by 18.0% during the 1st quarter. Loomis Sayles & Co. L P now owns 12,297,860 shares of the company’s stock worth $713,276,000 after purchasing an additional 1,877,563 shares during the last quarter. Parnassus Investments CA increased its position in shares of Cerner by 178.1% during the 2nd quarter. Parnassus Investments CA now owns 7,207,631 shares of the company’s stock worth $430,944,000 after purchasing an additional 4,616,290 shares during the last quarter. Fiduciary Management Inc. WI increased its position in shares of Cerner by 1.7% during the 1st quarter. Fiduciary Management Inc. WI now owns 7,052,646 shares of the company’s stock worth $409,053,000 after purchasing an additional 120,312 shares during the last quarter. Finally, Veritas Asset Management LLP increased its position in shares of Cerner by 25.7% during the 2nd quarter. Veritas Asset Management LLP now owns 4,586,572 shares of the company’s stock worth $274,231,000 after purchasing an additional 937,800 shares during the last quarter. 76.08% of the stock is currently owned by hedge funds and other institutional investors.
Cerner Company Profile
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.
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