Stock traders buy large volume of Cerner calls (NASDAQ: CERN)
Cerner Co. (NASDAQ: CERN) saw unusually high options trading activity on Wednesday. Stock traders acquired 52,465 call options on the stock. This is an increase of approximately 1,458% over the average volume of 3,368 call options.
Several research firms recently commented on CERN. Barclays raised its price target on Cerner shares from $ 77.00 to $ 79.00 and gave the company an “equal weight” rating in a report released on Monday, November 1. Canaccord Genuity downgraded Cerner’s shares from “buy” to “keep” in a research report released Monday. Morgan Stanley raised its target price on Cerner shares from $ 85 to $ 95 and gave the company an “equal weight” rating in a research report on Tuesday. SVB Leerink downgraded Cerner’s shares from an “outperformance” rating to a “market performance” rating and raised its price target for the company from $ 88.00 to $ 95 in a report released Monday. Finally, Robert W. Baird kicked off coverage on Cerner’s shares in a report on Tuesday, November 16. They issued a “neutral” rating and a price target of $ 82.00 for the company. One research analyst rated the stock with a sell rating, eight assigned a conservation rating, and four assigned a buy rating to the stock. According to MarketBeat, Cerner currently has a consensus rating of “Hold” and an average target price of $ 86.75.
CERN shares opened at $ 91.79 on Thursday. The company’s 50-day moving average is $ 75.05 and its two-hundred-day moving average is $ 76.33. Cerner has a 52-week low of $ 67.96 and a 52-week high of $ 92.37. The company has a market cap of $ 27.01 billion, a price-to-earnings ratio of 53.37, a PEG ratio of 2.45, and a beta of 0.78. The company has a quick ratio of 1.56, a current ratio of 1.57, and a debt ratio of 0.42.
Cerner (NASDAQ: CERN) last announced its results on Thursday, October 28. The company reported earnings per share (EPS) of $ 0.86 for the quarter, beating the Zacks consensus estimate of $ 0.82 per $ 0.04. Cerner reported a return on equity of 19.54% and a net margin of 9.15%. The company posted revenue of $ 1.47 billion for the quarter, compared to analysts’ estimates of $ 1.45 billion. During the same period of the previous year, the company posted $ 0.60 in EPS. Cerner’s quarterly revenue increased 7.2% year-over-year. On average, stock analysts expect Cerner to post earnings per share of 2.75 for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Tuesday, January 11. Shareholders of record on Monday, December 27 will receive a dividend of $ 0.27. The ex-dividend date of this dividend is Thursday, December 23. This is a positive change from Cerner’s previous quarterly dividend of $ 0.22. This represents an annualized dividend of $ 1.08 and a return of 1.18%. Cerner’s dividend payout ratio (DPR) is currently 51.16%.
A number of hedge funds and other institutional investors have recently changed their holdings at CERN. BlackRock Inc. increased its stake in Cerner shares by 9.2% in the third quarter. BlackRock Inc. now owns 26,150,047 shares of the company valued at $ 1,844,101,000 after purchasing an additional 2,198,317 shares during the last quarter. State Street Corp strengthened its position in Cerner shares by 0.9% in the 2nd quarter. State Street Corp now owns 13,827,894 shares of the company valued at $ 1,083,726,000 after purchasing an additional 122,658 shares during the period. Macquarie Group Ltd. increased its stake in Cerner by 0.3% in the 3rd quarter. Macquarie Group Ltd. now owns 9,740,773 shares of the company valued at $ 686,919,000 after acquiring 25,850 additional shares in the last quarter. American Century Companies Inc. increased its stake in Cerner by 8.3% in the 3rd quarter. American Century Companies Inc. now owns 8,522,203 shares of the company valued at $ 600,986,000 after acquiring an additional 651,326 shares in the last quarter. Finally, Geode Capital Management LLC increased its stake in Cerner by 10.3% in the 3rd quarter. Geode Capital Management LLC now owns 6,662,774 shares of the company valued at $ 469,000,000 after acquiring an additional 623,012 shares during the last quarter. 85.74% of the shares are currently held by hedge funds and other institutional investors.
Cerner Corp. designs, develops, markets, installs, hosts and supports healthcare information technology, healthcare devices, hardware and content solutions for healthcare organizations and consumers. The company also provides value-added services including implementation and training, remote hosting, operational management services, revenue cycle services, support and maintenance, data analysis of healthcare, clinical process optimization, transaction processing, employee wellness programs and third party administrator services for employer health plans.
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