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Cerner Stock Jumps 10% on Stock Buyback and Truce with Activist Firm Starboard

M. Corey Goldman

jumped more than 10% Tuesday after the company reached an agreement with activist hedge fund Starboard Value LP to appoint four mutually approved directors to its board and boosted its buyback program by $1.2 billion. "We are committed to delivering significant operating margin improvement and returning capital to our shareholders while maintaining an unwavering focus on delivering value to our clients," CEO Brent Shafer said in announcing the moves, which sent Cerner stock 10.3% higher to close at $62.97 on the Nasdaq Stock Market. Current Cerner board member William Zollars has also been appointed to the newly created position of lead independent director, the company said.