Cerner (CERN) Cut to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of Cerner (NASDAQ:CERN) from a hold rating to a sell rating in a research report report published on Monday morning.

According to Zacks, “Cerner underperformed its industry in a year’s time. The company’s Subscription and Reimbursed travel revenues are declining. A significant drop in operating income and margin is worrisome. High long-term debt is another concern. Competition in the global MedTech space adds to the woes. However, Cerner saw consistent growth in its Electronic Health Record platform and Revenue Cycle Management solutions. Cerner Millennium and Cerner ITWorks continue to drive results. Growth in Licensed Software and Professional services is noteworthy. Cerner’s CommunityWorks organization continues to perform well in the small hospital market space. Solid international growth also raises hopes. Management is optimistic about solid booking contributions from Australia, Canada, Middle East and Europe in the second half of 2018. A positive guidance for 2018 is encouraging. In recent times, Cerner has seen a slew of developments.”

A number of other equities analysts also recently commented on the company. BidaskClub upgraded Cerner from a sell rating to a hold rating in a research note on Thursday, September 27th. Barclays assumed coverage on Cerner in a research note on Thursday, September 13th. They issued an equal weight rating and a $70.00 price target for the company. Cantor Fitzgerald reiterated a buy rating and issued a $80.00 price target on shares of Cerner in a research note on Wednesday, September 12th. KeyCorp lifted their price target on Cerner from $74.00 to $76.00 and gave the stock an overweight rating in a research note on Monday, August 20th. Finally, SunTrust Banks lifted their price target on Cerner to $65.00 and gave the stock a hold rating in a research note on Monday, August 6th. One research analyst has rated the stock with a sell rating, nine have given a hold rating and eleven have assigned a buy rating to the company. The company has an average rating of Hold and a consensus target price of $71.71.

Shares of Cerner stock opened at $63.72 on Monday. The stock has a market cap of $21.19 billion, a PE ratio of 28.96, a price-to-earnings-growth ratio of 2.04 and a beta of 0.92. Cerner has a 1-year low of $52.05 and a 1-year high of $73.86. The company has a debt-to-equity ratio of 0.09, a current ratio of 2.85 and a quick ratio of 2.83.

Cerner (NASDAQ:CERN) last posted its quarterly earnings results on Thursday, August 2nd. The company reported $0.62 EPS for the quarter, topping the Zacks’ consensus estimate of $0.60 by $0.02. The business had revenue of $1.37 billion during the quarter, compared to the consensus estimate of $1.33 billion. Cerner had a return on equity of 15.26% and a net margin of 16.06%. The company’s revenue for the quarter was up 5.9% compared to the same quarter last year. During the same period last year, the firm earned $0.61 earnings per share. On average, analysts predict that Cerner will post 2.28 EPS for the current fiscal year.

In other Cerner news, President Zane M. Burke sold 283,539 shares of the firm’s stock in a transaction dated Tuesday, September 11th. The shares were sold at an average price of $63.68, for a total value of $18,055,763.52. Following the transaction, the president now owns 59,539 shares of the company’s stock, valued at $3,791,443.52. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, President Zane M. Burke sold 381,139 shares of the firm’s stock in a transaction dated Thursday, September 13th. The stock was sold at an average price of $64.05, for a total transaction of $24,411,952.95. Following the completion of 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 sold 1,270,870 shares of company stock worth $82,486,031 in the last three months. 4.71% of the stock is currently owned by corporate insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Parnassus Investments CA raised its holdings in shares of Cerner by 178.1% during the second quarter. Parnassus Investments CA now owns 7,207,631 shares of the company’s stock valued at $430,944,000 after buying an additional 4,616,290 shares during the last quarter. Summit Trail Advisors LLC raised its holdings in shares of Cerner by 5,166.1% during the first quarter. Summit Trail Advisors LLC now owns 1,980,457 shares of the company’s stock valued at $1,980,000 after buying an additional 1,942,849 shares during the last quarter. Epoch Investment Partners Inc. raised its holdings in shares of Cerner by 1,497.5% during the second quarter. Epoch Investment Partners Inc. now owns 1,520,499 shares of the company’s stock valued at $90,910,000 after buying an additional 1,425,317 shares during the last quarter. LGT Capital Partners LTD. bought a new stake in shares of Cerner during the second quarter valued at approximately $58,038,000. Finally, Veritas Asset Management LLP raised its holdings in shares of Cerner by 25.7% during the second quarter. Veritas Asset Management LLP now owns 4,586,572 shares of the company’s stock valued at $274,231,000 after buying an additional 937,800 shares during the last quarter. 76.06% of the stock is currently owned by hedge funds and other institutional investors.

About Cerner

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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