Cerner stock: buy or sell?
September 20th, 2019
Cerner Corporation provides health care information technology solutions and services in the United States and internationally.
Should I buy Cerner stock?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
None of our preferred buy setups matches with Cerner stock situation right now, hence this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Cerner stock a buy?
Financial institutions and banks post stock ratings everyday.At Stocks2.com, we collected 14 ratings published for CERN stock in the last 30 days. The general sentiment of these ratings is bullish for CERN stock, with 10 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-8-23||Jefferies Financial Group||Buy||Hold|
|2019-7-25||Wells Fargo & Co||n/a||Outperform|
|2019-5-21||Bank of America||n/a||Buy|
|2019-2-28||Morgan Stanley||Equal Weight||Underweight|
Cerner stock analysis
Cerner shares stepped up 1.12% to $68.44 today.
Cerner ended today at $68.44 and stepped up a beatiful 1.12%. Since SMA100d and SMA200d crossed up on May, CERN price slid a -2.42%. CERN is soaring again after a 3.31% correction from its last top on September/12 at $69.20. In the last 28 days when CERN stock price broke down the SMA100d line, it slid $-3.24 per share (-4.52%). On July, CERN hit new all time highs, pushing higher previous ATH of $76.20 recorded on July. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Cerner ended this week at $68.44 and appreciated a tiny 0.87%.
Not so far away is the last all-time high Cerner marked early July. Late May, SMA20w and SMA40w crossed up triggering a rise of 0.19%. Since price and SMA40w lines crossed up early April, CERN climbed $11.26 (19.69%).
Cerner stock price history
Cerner IPO was on December 5th, 1986 at $0.26 per share1. Since then, CERN stock surged a 26,223.10%, with a yearly average of 819.50%. If you had invested $1,000 in Cerner stock in 1986, it would worth $262,231.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Cerner stock historical price chart
CERN stock reached all-time highs on July with a price of $76.47.
Cerner stock price target is $74.30Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 12 price predictions for CERN stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-8-23||Morgan Stanley||Raises Target||$49.00||$62.00||26.5%|
|2019-8-23||Jefferies Financial Group||Downgrades||$69.00||$75.00||8.7%|
|2019-7-8||Cantor Fitzgerald||Raises Target||$75.00||$85.00||13.3%|
|2019-7-25||Wells Fargo & Co||Reiterates||$72.00||$80.00||11.1%|
|2019-7-25||Canaccord Genuity||Raises Target||$77.00||$80.00||3.9%|
|2019-5-21||Bank of America||Raises Target||$70.00||$77.00||10%|
Financials and fundamental analysis
Earnings date and Earnings per ShareSince April, when Cerner presented its last earnings report, it . Unfortunately, reported EPS is not yet available in our database.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual sales report draw a nice gain of 4.36% to $5,366.33 million USD. Instead, its earnings margin (compared to sales) eased to 11.74%, that is $630.06 million. Cerner presents anual results in December, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Cerner TTM sales up to March 2019 were $5,463.34 and income $636.28 million dollars. When comparing this TTM figures with the last reported annuality, we can esteem Cerner business evolution since December 2018: Annual revenues up to March, compared to lastest yearly report, gained 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 reported $1,389.88 M in sales for 2019-Q1, a 1.77% improvement compared to previous quarter. Reported quarter income marked $166.22 M 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 increase and soared a 7.50%. Looking back to recent quarterly results, Cerner posted 2 positive 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 company, it's always worth to overview its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Cerner, 4.42% of all outstanding shares are owned by its staff.
Bearish positions for CERN stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Cerner:
|Market cap||$21.8 B||$333.9 M||$8.3 B||$82.2 B||$3.2 B|
|Total shares||318.4 M||14.4 M||262.0 M||8,730.0 M||87.4 M|
|Float shares||307.1 M||13.1 M||260.7 M||8,710.0 M||85.7 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%|
|Friday, September 20th, 2019|
|Day range||$67.41 - $68.63|
|Average true range||$1.28|
|50d mov avg||$70.41|
|100d mov avg||$70.66|
|200d mov avg||$63.53|
Cerner performancePerformance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the 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 competitorsOne check before investing in any stock is to review a list of its competitors, in this case for Cerner. We picked 9 companies as Cerner competitors as they are in the same industry or have similar market objectives.
- 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