Zacks Investment Research downgraded shares of Cisco Systems (NASDAQ:CSCO) from a buy rating to a hold rating in a research note issued to investors on Tuesday morning.
According to Zacks, “Cisco delivered stellar third quarter results. Strong contribution from acquisitions, security, Infrastructure Platforms and applications drove year-over-year growth. We believe that Cisco’s expanding footprint in the rapidly growing security market presents significant growth opportunity. Strengthening collaboration portfolio which now includes Webex Teams and AI-based Accompany bodes well. Partnerships with Telenor, Apple, IBM, Microsoft and Google Cloud are positive. Divestiture of a portion of Cisco’s NDS video assets is likely to mitigate the sluggishness witnessed in other product segment. Shares have outperformed industry on a year-to-date basis. However, weakness in switching and routing is a headwind. Ongoing transition to subscription-based model will continue to hurt the top line. Further, dampening service provider business and intense competition from the likes of Huawei, Juniper and Arista Networks are other concerns.”
CSCO has been the subject of several other reports. Vetr raised shares of Cisco Systems from a buy rating to a strong-buy rating and set a $46.32 price objective for the company in a report on Tuesday, April 3rd. BidaskClub downgraded shares of Cisco Systems from a strong-buy rating to a buy rating in a report on Saturday. Goldman Sachs raised shares of Cisco Systems from a buy rating to a conviction-buy rating in a report on Friday, March 23rd. Royal Bank of Canada raised their price objective on shares of Cisco Systems to $50.00 and gave the stock an outperform rating in a report on Thursday, February 15th. Finally, ValuEngine raised shares of Cisco Systems from a hold rating to a buy rating in a report on Friday, February 2nd. Eleven investment analysts have rated the stock with a hold rating, twenty-four have assigned a buy rating and one has issued a strong buy rating to the stock. Cisco Systems currently has an average rating of Buy and a consensus price target of $46.11.
Cisco Systems stock opened at $43.65 on Tuesday. Cisco Systems has a twelve month low of $30.36 and a twelve month high of $46.37. The company has a market cap of $208.16 billion, a PE ratio of 20.30, a P/E/G ratio of 3.08 and a beta of 1.14. The company has a quick ratio of 2.28, a current ratio of 2.34 and a debt-to-equity ratio of 0.44.
Cisco Systems (NASDAQ:CSCO) last released its earnings results on Wednesday, May 16th. The network equipment provider reported $0.66 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.65 by $0.01. Cisco Systems had a negative net margin of 2.61% and a positive return on equity of 19.48%. The firm had revenue of $12.46 billion during the quarter, compared to the consensus estimate of $12.42 billion. During the same period in the prior year, the firm earned $0.60 EPS. equities analysts expect that Cisco Systems will post 2.34 EPS for the current fiscal year.
Cisco Systems announced that its board has authorized a stock buyback plan on Wednesday, February 14th that authorizes the company to buyback $25.00 billion in outstanding shares. This buyback authorization authorizes the network equipment provider to buy shares of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is undervalued.
In other news, EVP David Goeckeler sold 20,671 shares of the firm’s stock in a transaction on Thursday, March 15th. The shares were sold at an average price of $45.50, for a total transaction of $940,530.50. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director M Michele Burns sold 12,126 shares of the firm’s stock in a transaction on Monday, February 26th. The shares were sold at an average price of $45.37, for a total transaction of $550,156.62. Following the sale, the director now owns 74,479 shares in the company, valued at approximately $3,379,112.23. The disclosure for this sale can be found here. Company insiders own 0.05% of the company’s stock.
Several institutional investors have recently bought and sold shares of CSCO. Bank of New York Mellon Corp grew its holdings in shares of Cisco Systems by 12.8% during the 4th quarter. Bank of New York Mellon Corp now owns 122,958,272 shares of the network equipment provider’s stock valued at $4,709,302,000 after purchasing an additional 13,927,416 shares during the last quarter. Ameriprise Financial Inc. grew its holdings in shares of Cisco Systems by 23.6% during the 3rd quarter. Ameriprise Financial Inc. now owns 62,709,508 shares of the network equipment provider’s stock valued at $2,109,614,000 after purchasing an additional 11,972,070 shares during the last quarter. Amundi Pioneer Asset Management Inc. grew its holdings in shares of Cisco Systems by 91.0% during the 4th quarter. Amundi Pioneer Asset Management Inc. now owns 19,498,882 shares of the network equipment provider’s stock valued at $746,806,000 after purchasing an additional 9,292,187 shares during the last quarter. Stifel Financial Corp grew its holdings in shares of Cisco Systems by 6,109.5% during the 3rd quarter. Stifel Financial Corp now owns 8,147,775 shares of the network equipment provider’s stock valued at $273,977,000 after purchasing an additional 8,016,561 shares during the last quarter. Finally, Mackenzie Financial Corp grew its holdings in shares of Cisco Systems by 5,651.3% during the 4th quarter. Mackenzie Financial Corp now owns 4,910,280 shares of the network equipment provider’s stock valued at $188,064,000 after purchasing an additional 4,824,903 shares during the last quarter. Hedge funds and other institutional investors own 73.89% of the company’s stock.
About Cisco Systems
Cisco Systems, Inc designs, manufactures, and sells Internet Protocol (IP) based networking and other products related to the communications and information technology industry worldwide. The company offers switching products, including fixed-configuration and modular switches, and storage products that provide connectivity to end users, workstations, IP phones, wireless access points, and servers; and next-generation network routing products that interconnect public and private wireline and mobile networks for mobile, data, voice, and video applications.
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