Cerner Co. to Issue Quarterly Dividend of $0.18 (NASDAQ:CERN)

Cerner Co. (NASDAQ:CERN) declared a quarterly dividend on Wednesday, September 11th, RTT News reports. Shareholders of record on Wednesday, September 25th will be given a dividend of 0.18 per share on Wednesday, October 9th. This represents a $0.72 dividend on an annualized basis and a yield of 1.05%. The ex-dividend date is Tuesday, September 24th.

Cerner has a payout ratio of 31.6% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Cerner to earn $2.93 per share next year, which means the company should continue to be able to cover its $0.72 annual dividend with an expected future payout ratio of 24.6%.

NASDAQ:CERN opened at $68.44 on Monday. The company has a quick ratio of 2.50, a current ratio of 2.52 and a debt-to-equity ratio of 0.22. The stock’s fifty day moving average is $69.28 and its two-hundred day moving average is $67.46. Cerner has a 52 week low of $48.78 and a 52 week high of $76.47. The stock has a market capitalization of $21.55 billion, a price-to-earnings ratio of 30.97, a price-to-earnings-growth ratio of 2.11 and a beta of 0.92.

Cerner (NASDAQ:CERN) last released its quarterly earnings results on Wednesday, July 24th. The company reported $0.60 EPS for the quarter, topping analysts’ consensus estimates of $0.58 by $0.02. Cerner had a return on equity of 15.14% and a net margin of 10.75%. The company had revenue of $1.43 billion for the quarter, compared to analysts’ expectations of $1.44 billion. During the same period in the prior year, the firm earned $0.62 earnings per share. The firm’s revenue was up 4.6% compared to the same quarter last year. On average, sell-side analysts expect that Cerner will post 2.43 EPS for the current fiscal year.

In related news, EVP John Peterzalek sold 27,484 shares of the stock in a transaction on Thursday, August 22nd. The stock was sold at an average price of $72.11, for a total value of $1,981,871.24. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP Jeffrey A. Townsend sold 199,432 shares of the stock in a transaction on Monday, September 9th. The shares were sold at an average price of $66.46, for a total value of $13,254,250.72. Following the completion of the transaction, the vice president now directly owns 59,432 shares in the company, valued at approximately $3,949,850.72. The disclosure for this sale can be found here. Insiders sold 344,268 shares of company stock worth $23,243,010 in the last three months. 0.75% of the stock is currently owned by corporate insiders.

Several brokerages have recently issued reports on CERN. Argus upgraded Cerner from a “hold” rating to a “buy” rating in a research note on Thursday, August 22nd. Wells Fargo & Co increased their price objective on Cerner from $72.00 to $80.00 and gave the company an “outperform” rating in a research note on Thursday, July 25th. BidaskClub cut Cerner from a “sell” rating to a “strong sell” rating in a research note on Friday, September 6th. Cantor Fitzgerald increased their price objective on Cerner from $75.00 to $85.00 and gave the company an “overweight” rating in a research note on Monday, July 8th. Finally, ValuEngine cut Cerner from a “buy” rating to a “hold” rating in a research note on Wednesday, September 4th. Two research analysts have rated the stock with a sell rating, five have assigned a hold rating and eleven have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $74.73.

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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