Cerner Corporation (NASDAQ:CERN) shares traded higher over the last trading session, gaining 2.71% on 12/16/20. The shares fell to a low of $75.44 before closing at $77.40. Intraday shares traded counted 3.21 million, which was -132.85% lower than its 30-day average trading volume of 1.38M. CERN’s previous close was $75.36 while the outstanding shares total 306.59M. The firm has a beta of 0.75, a 12-month trailing P/E ratio of 30.27, and a growth ratio of 2.87. The stock’s Relative Strength Index (RSI) is 65.65, with weekly volatility at 1.63% and ATR at 1.47. The CERN stock’s 52-week price range has touched low of $53.08 and a $80.90 high.
Investors have identified the Health Information Services company Cerner Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $23.56 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Cerner Corporation (CERN) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 2.52 billion total, with 1.1 billion as their total liabilities.
CERN were able to record 461.28 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by -22.69 million. In cash movements, the company had a total of 924.04 million as operating cash flow.
Potential earnings growth for Cerner Corporation (CERN)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Cerner Corporation recorded a total of 1.37 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -4.44% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 2.8%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 231.89 million trying to sell their products during the last quarter, with the result yielding a gross income of 1.14 billion. This allows shareholders to hold on to 306.59M with the recently reported earning now reading 1.17 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (0.60 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.87 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on CERN sounds very interesting.
Is the stock of CERN attractive?
In related news, VP & Chief Accounting Officer, Battaglioli Michael R. sold 2,960 shares of the company’s stock in a transaction that recorded on Dec 11. The sale was performed at an average price of 74.95, for a total value of 221,852. As the sale deal closes, the EVP & Chief Client & Serv. Off, PETERZALEK JOHN now sold 100 shares of the company’s stock, valued at 7,600. Also, Director, RIEDEL GEORGE ANDREW sold 1,750 shares of the company’s stock in a deal that was recorded on Nov 16. The shares were price at an average price of 75.69 per share, with a total market value of 132,458. Following this completion of acquisition, the EVP & Chief Client & Serv. Off, PETERZALEK JOHN now holds 1,100 shares of the company’s stock, valued at 83,644. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.14%.
15 out of 25 analysts covering the stock have rated it a Buy, while 8 have maintained a Hold recommendation on Cerner Corporation. 1 analysts has assigned a Sell rating on the CERN stock. The 12-month mean consensus price target for the company’s shares has been set at $77.90.