Cerner stock: buy or sell?
July 16th, 2019
Cerner Corporation provides health care information technology solutions and services in the United States and internationally.
Should I buy Cerner stock?Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
These 2 buy setups match with Cerner stock now:
|New all-time high||Yes|
|New 52 week high||Yes|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Cerner stock a buy?
Banks and financial institutions publish stock ratings everyday.At Stocks2.com, we collected 7 ratings published for CERN stock in the last month. The general sentiment of these ratings is bullish for CERN stock, with 5 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-5-21||Bank of America||n/a||Buy|
|2019-2-28||Morgan Stanley||Equal Weight||Underweight|
Cerner stock analysis
Cerner fell -1.78% today to $74.48 after marking all time highs on Friday.
Cerner fell -1.78% to $74.48 after reaching all time highs on Friday. On May, SMA100d and SMA200d crossed up triggering a rise of 6.19%. Since price and SMA200d lines crossed up on April, CERN climbed $17.53 (30.78%). From a daily perspective, CERN is in a short term uptrend after plotting its last bottom ($73.54, on Jul 5th) higher than the previous bottom, and its last top ($76.47, on Friday) also over the previous top. Now trading in between its last bottom and last top CERN might consolidate in a plain range, waiting to break out over $76.47 or down under $73.54. On Friday, CERN hit a new all time high, pushing higher than on Thursday tops. Check different trading setups that use ATHs as triggers.
After climbing for 4 weeks, this week Cerner declined a fateful -2.15%, closing at $74.48.
Cerner stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, CERN might consolidate in a flat-base, waiting to break out over or down under . Not so far away is the last price record Cerner marked last week. Late May, SMA20w and SMA40w crossed up triggering a rise of 9.03%. Since price and SMA40w lines crossed up early April, CERN climbed $17.30 (30.26%).
Cerner stock price history
Cerner stock went public on December 5th, 1986 with a price of $0.261. Since then, CERN stock grew a 28,546.20%, with a yearly average of 892.10%. If you had invested $1,000 in Cerner stock in 1986, it would worth $285,462.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Cerner stock historical price chart
CERN stock reached all-time highs on Friday with a price of $76.47.
Cerner stock price target is $71.50Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We have 6 price targets for Cerner stock released in the last month:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-7-8||Cantor Fitzgerald||Raises Target||$75.00||$85.00||13.3%|
|2019-5-21||Bank of America||Raises Target||$70.00||$77.00||10%|
Financials and fundamental analysis
Earnings date and Earnings per ShareSince last April, when Cerner published its last earnings report, it escalated an impressive 12.37%. As soon as we get its actual EPS from the earnings report, we will extend this report.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual sales report draw a nice increase of 4.36% to $5,366.33 million dollars. When comparing 2018 vs 2017, instead, profit margin (that is, the net income divided by revenues) dropped a -5.12% to 11.74%. To have an up to date view of the financial situation of Cerner, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Cerner TTM sales up to March 2019 were $5,463.34 and income was $636.28 M USD. If we compare this TTM figures with the last reported annuality, we can esteem Cerner business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, appreciated a slightly good 1.81%. Regarding profit margin, Cerner stayed stable -0.09% to 11.74%
|2013||$2,910 M||-||$398 M13.7%||-|
|2014||$3,403 M||16.93%||$525 M15.4%||31.90%|
|2015||$4,425 M||30.05%||$539 M12.2%||2.65%|
|2016||$4,796 M||8.39%||$636 M13.3%||18.01%|
|2017||$5,142 M||7.21%||$867 M16.9%||36.21%|
|2018||$5,366 M||4.36%||$630 M11.7%||-27.33%|
|TTM||$5,463 M||1.81%||$636 M11.6%||0.99%|
Quarterly financial resultsCerner posted $1,389.88 M in sales for 2019-Q1, a 1.77% up compared to previous quarter. Reported quarter earnings marked $166.22 million with a profit margin of 11.96%. Profit margin inched a 2.34% compared to previous quarter when profit margin was 9.62%. When comparing turnover to same quarter last year, Cerner sales marked a shining growth and soared a 7.50%. Looking back to recent quarterly results, Cerner posted 2 negative quarters in a row.
|2017-Q2||$1,290 M||-||$180 M13.9%||-|
|2017-Q3||$1,280 M||-0.78%||$177 M13.9%||-1.26%|
|2017-Q4||$1,314 M||2.64%||$337 M25.6%||89.75%|
|2018-Q1||$1,293 M||-1.59%||$160 M12.4%||-52.47%|
|2018-Q2||$1,368 M||5.79%||$169 M12.4%||5.85%|
|2018-Q3||$1,340 M||-2.02%||$169 M12.6%||0.01%|
|2018-Q4||$1,366 M||1.91%||$131 M9.6%||-22.47%|
|2019-Q1||$1,390 M||1.77%||$166 M12.0%||26.58%|
Cerner ownershipWhen you are planning to buy shares of a stock, it's worth to check its ownership structure.
Cerner shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 4.42% of all shares.
Bearish positions for CERN stock account 0.00%, no big difference from last month.
For a better understanding, the next table shows ownership data compared to other related stocks:
|Market cap||$24.2 B||$401.6 M||$15.2 B||$89.6 B||$2.9 B|
|Total shares||325.4 M||14.4 M||266.4 M||8,720.0 M||87.1 M|
|Float shares||314.3 M||12.3 M||267.5 M||8,710.0 M||85.6 M|
|- Institutional holdings (%)||82.8%||90.4%||88.3%||58.6%||100.0%|
|- Insider holdings (%)||4.4%||4.6%||0.4%||0.2%||1.6%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Tuesday, July 16th, 2019|
|Day range||$74.14 - $76.14|
|Average true range||$1.11|
|50d mov avg||$71.38|
|100d mov avg||$65.39|
|200d mov avg||$61.13|
Cerner performanceStocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. For Cerner, the benchmark is made against Computer Programs and Systems, DXC Technology, General Electric, HMS, McKesson, Allscripts Healthcare Solutions, 3M, Omnicell and Streamline Health Solutions.
Cerner competitorsWe selected a few stocks to conform a list of Cerner competitors to check if you are interested in investing in CERN:
- Computer Programs and Systems (CPSI)
- DXC Technology (DXC)
- General Electric (GE)
- HMS (HMSY)
- McKesson (MCK)
- Allscripts Healthcare Solutions (MDRX)
- 3M (MMM)
- Omnicell (OMCL)
- Streamline Health Solutions (STRM)
Latest Cerner stock news
- Seeking AlphaWith Recent Developments, Cerner Looks Even More AttractiveApril 11, 2019
- Seeking AlphaCerner: A Leading Company In A Competitive IndustryJanuary 4, 2019
- Seeking AlphaCerner Corp.: Time To RallyDecember 13, 2018
- Seeking AlphaCerner: A Wide Economic Moat In The MakingNovember 15, 2018
- Investors.comStock News Today: Western Digital, Cerner, Amazon, Nvidia Lead Nasdaq 100 LowerOctober 26, 2018