Cerner (NASDAQ:CERN) Cut to Strong Sell at BidaskClub

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BidaskClub downgraded shares of Cerner (NASDAQ:CERN) from a sell rating to a strong sell rating in a research report sent to investors on Friday morning, BidAskClub reports.

Several other research firms have also issued reports on CERN. ValuEngine lowered shares of Cerner from a buy rating to a hold rating in a report on Wednesday, September 4th. Jefferies Financial Group cut Cerner from a buy rating to a hold rating and boosted their price target for the stock from $69.00 to $75.00 in a research report on Friday, August 23rd. Argus upgraded Cerner from a hold rating to a buy rating in a research note on Thursday, August 22nd. Bank of America raised their price objective on Cerner from $70.00 to $77.00 and gave the company a buy rating in a research report on Tuesday, May 21st. Finally, Morgan Stanley lifted their price objective on Cerner from $49.00 to $62.00 and gave the company an underweight rating in a research note on Friday, August 23rd. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating and eleven have assigned a buy rating to the company. The stock has an average rating of Buy and a consensus price target of $74.73.

Shares of Cerner stock opened at $66.50 on Friday. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.52 and a quick ratio of 2.50. The company has a 50-day moving average of $70.29 and a 200 day moving average of $66.92. The firm has a market cap of $21.45 billion, a price-to-earnings ratio of 29.29, a PEG ratio of 1.90 and a beta of 0.92. Cerner has a 1 year low of $48.78 and a 1 year high of $76.47.

Cerner (NASDAQ:CERN) last posted its quarterly earnings data on Wednesday, July 24th. The company reported $0.60 EPS for the quarter, topping the consensus estimate of $0.58 by $0.02. The business had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.44 billion. Cerner had a net margin of 10.75% and a return on equity of 15.14%. Cerner’s quarterly revenue was up 4.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.62 earnings per share. On average, equities analysts anticipate that Cerner will post 2.43 EPS for the current year.

In related news, CFO Marc G. Naughton sold 24,110 shares of the firm’s stock in a transaction that occurred on Friday, September 6th. The shares were sold at an average price of $67.58, for a total transaction of $1,629,353.80. Following the completion of the sale, the chief financial officer now owns 84,898 shares of the company’s stock, valued at $5,737,406.84. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Donald Trigg sold 29,423 shares of the business’s stock in a transaction that occurred on Friday, September 6th. The stock was sold at an average price of $67.72, for a total transaction of $1,992,525.56. The disclosure for this sale can be found here. In the last quarter, insiders sold 130,345 shares of company stock worth $9,172,094. Insiders own 0.75% of the company’s stock.

Institutional investors and hedge funds have recently modified their holdings of the business. Acropolis Investment Management LLC grew its holdings in shares of Cerner by 2.0% in the second quarter. Acropolis Investment Management LLC now owns 7,494 shares of the company’s stock worth $549,000 after acquiring an additional 148 shares during the period. Advisor Partners LLC boosted its position in Cerner by 2.2% in the second quarter. Advisor Partners LLC now owns 7,061 shares of the company’s stock worth $518,000 after purchasing an additional 154 shares during the last quarter. Destination Wealth Management grew its stake in shares of Cerner by 3.7% during the 2nd quarter. Destination Wealth Management now owns 5,208 shares of the company’s stock valued at $382,000 after purchasing an additional 187 shares during the period. Coastal Investment Advisors Inc. grew its stake in shares of Cerner by 16.3% during the 2nd quarter. Coastal Investment Advisors Inc. now owns 1,426 shares of the company’s stock valued at $104,000 after purchasing an additional 200 shares during the period. Finally, Berman Capital Advisors LLC grew its stake in shares of Cerner by 115.3% during the 2nd quarter. Berman Capital Advisors LLC now owns 381 shares of the company’s stock valued at $27,000 after purchasing an additional 204 shares during the period. Institutional investors and hedge funds own 83.22% of the company’s stock.

About Cerner

Cerner Corporation provides health care information technology solutions and tech-enabled 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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