Cerner to Buy Back Stock
Citing its favorable position for growth, a solid balance sheet and expected strong cash flow, health information technology provider Cerner Corp. (NASDAQ: CERN – $64.95) said its Board of Directors approved a stock repurchase program up to $500 million. The company plans to repurchase shares from time-to-time in the open market, by block purchase or possibly through other transactions managed by broker-dealers and no time limit was set for completion of the program. Approximately 7.8 million shares, or 2.3% of the company’s outstanding shares, could be repurchased. The program will be funded from working capital. There is about $100 million remaining under the previous stock repurchase program approved by Cerner in November 2016. I believe Cerner stock, up 18% over the past twelve months, should continue to fare well over time.