Markets

Cerner Sanctions Share Repurchase Program; Stock Gains

Cerner Corporation 's CERN announcement of share repurchase program got a favorable response from investors, as shares rose 4.3% to close at $62.38 yesterday. The stock buyback program of worth $245 million has already been approved by its board on Sep 4. There is no time frame set for the completion of the program.

Per management at Cerner, around 4.1 million (1.2% of outstanding shares) can be bought back based on the closing price of Sep 4. The repurchase, which will be funded from working capital, is planned to counterbalance a portion of the dilution created by future equity grants.

The company in Dec 2013 had announced a share repurchase program of worth $217 million, which was completed in May 2014.

We believe that the latest share repurchase program will significantly boost shareholders' return, reflecting the company's strong balance sheet. We feel that apart from share buybacks, frequent partnerships will also help instill investor confidence in the company.

Earlier this month, Cerner announced a strategic partnership with Glens Falls Hospital - a NY-based integrated health care organization. Under the terms of the newly-inked deal, Cerner's Millennium electronic health record (EHR) will be integrated into Glens Falls' ambulatory services to improve clinical processes and health care delivery.

Cerner was also selected by Western Connecticut Health Network for providing an EHR system, inclusive of a full range of clinical and financial solutions, and population health management. Cerner's Millennium EHR solutions will substitute Western Connecticut Health Network's existing software systems. Western Connecticut Health will also upgrade Soarian Enterprise Revenue Cycle solutions.

Last month, Cerner entered into a partnership with CoverMyMeds to integrate CoverMyMeds' electronic prior authorization (ePA) platform within Cerner's Millennium EHR. Cerner was also selected by health care organization - Baptist Health South Florida - for the implementation of Cerner Millennium and HealtheIntent across all of the former's hospitals, physician offices and outpatient locations.

Zacks Rank & Stocks to Consider

Currently, Cerner carries a Zacks Rank #3 (Hold). Better-ranked stocks in the medical sector include Masimo MASI , NuVasive NUVA and Thoratec THOR . All the stocks sport a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CERNER CORP (CERN): Free Stock Analysis Report

THORATEC CORP (THOR): Free Stock Analysis Report

MASIMO CORP (MASI): Free Stock Analysis Report

NUVASIVE INC (NUVA): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

THOR NUVA MASI CERN

Other Topics

Stocks

Latest Markets Videos