Zacks Investment Research cut shares of Cerner (NASDAQ:CERN) from a buy rating to a hold rating in a research report report published on Friday.
According to Zacks, “Cerner has had an impressive run on the bourses in the last year, trading above the broader industry. 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. Additionally, a growing percentage of higher margin software in the business mix is expected to drive margins. The company performed impressively in the ambulatory and small hospital markets lately. However, Cerner has been facing macroeconomic challenges lately. Unfavorable political scenario and expensive valuation may add to worries. In recent times, Cerner’s 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.”
CERN has been the topic of several other reports. Royal Bank of Canada reissued a buy rating on shares of Cerner in a research note on Wednesday, October 25th. Jefferies Group reissued a buy rating on shares of Cerner in a research note on Sunday, October 29th. Piper Jaffray Companies reissued a buy rating and issued a $70.00 target price on shares of Cerner in a research note on Thursday, November 30th. Citigroup assumed coverage on Cerner in a research note on Thursday, January 4th. They issued a neutral rating on the stock. Finally, BidaskClub cut Cerner from a buy rating to a hold rating in a research note on Friday, December 22nd. One investment analyst has rated the stock with a sell rating, fifteen have assigned a hold rating and eight have assigned a buy rating to the company’s stock. Cerner has an average rating of Hold and a consensus target price of $70.16.
Shares of Cerner (NASDAQ:CERN) opened at $63.41 on Friday. The company has a quick ratio of 2.75, a current ratio of 2.77 and a debt-to-equity ratio of 0.11. The stock has a market capitalization of $21,080.00, a PE ratio of 31.55, a P/E/G ratio of 1.95 and a beta of 0.90. Cerner has a 12 month low of $51.26 and a 12 month high of $73.86.
In other news, CEO Clifford W. Illig sold 140,000 shares of Cerner stock in a transaction that occurred on Thursday, November 16th. The shares were sold at an average price of $65.52, for a total transaction of $9,172,800.00. Following the completion of the transaction, the chief executive officer now directly owns 1,229,719 shares in the company, valued at $80,571,188.88. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Chairman Clifford W. Illig sold 530,000 shares of Cerner stock in a transaction that occurred on Monday, November 20th. The shares were sold at an average price of $65.54, for a total transaction of $34,736,200.00. Following the transaction, the chairman now owns 1,229,719 shares of the company’s stock, valued at $80,595,783.26. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 784,000 shares of company stock worth $51,926,960. Insiders own 13.11% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in the company. Crossmark Global Holdings Inc. lifted its holdings in shares of Cerner by 6.9% during the fourth quarter. Crossmark Global Holdings Inc. now owns 152,710 shares of the company’s stock valued at $10,291,000 after purchasing an additional 9,879 shares during the last quarter. WASHINGTON TRUST Co lifted its holdings in shares of Cerner by 1.7% during the fourth quarter. WASHINGTON TRUST Co now owns 329,219 shares of the company’s stock valued at $22,185,000 after purchasing an additional 5,476 shares during the last quarter. American Century Companies Inc. lifted its holdings in shares of Cerner by 3.7% during the fourth quarter. American Century Companies Inc. now owns 3,204,461 shares of the company’s stock valued at $215,949,000 after purchasing an additional 114,224 shares during the last quarter. Meeder Asset Management Inc. lifted its holdings in shares of Cerner by 708.5% during the fourth quarter. Meeder Asset Management Inc. now owns 49,584 shares of the company’s stock valued at $3,342,000 after purchasing an additional 43,451 shares during the last quarter. Finally, Public Employees Retirement Association of Colorado lifted its holdings in shares of Cerner by 3.4% during the fourth quarter. Public Employees Retirement Association of Colorado now owns 55,898 shares of the company’s stock valued at $3,767,000 after purchasing an additional 1,835 shares during the last quarter. Hedge funds and other institutional investors own 81.99% of the company’s stock.
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Cerner Company Profile
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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