Zacks Investment Research upgraded shares of Cisco Systems (NASDAQ:CSCO) from a hold rating to a buy rating in a research report report published on Wednesday morning. They currently have $50.00 price objective on the network equipment provider’s stock.
According to Zacks, “Cisco reported impressive second-quarter fiscal 2018 results. Both earnings and revenues increased on a year-over-year basis. The growth was driven by strong contribution from acquisitions, security, Infrastructure Platforms and applications. We believe that the company’s expanding footprint in the rapidly growing security market presents significant growth opportunity. Additionally, partnerships with Telenor, Apple, IBM, Microsoft, Google Cloud, Viacom and Alibaba are positive in our view. Moreover, aggressive share buyback is positive. In the past-12 months, shares have outperformed the industry it belongs to. However, weakness in the switching and routing is a headwind. Moreover, ongoing transition to subscription-based model will continue to hurt the top line. Further, weakness in the service provider business segment and intense competition from the likes of Huawei, Juniper and Arista Networks are other major concerns.”
Other research analysts also recently issued reports about the company. Robert W. Baird reaffirmed a buy rating on shares of Cisco Systems in a report on Thursday, November 16th. UBS Group reaffirmed a buy rating and set a $39.00 price target on shares of Cisco Systems in a report on Thursday, November 16th. Deutsche Bank reaffirmed a buy rating and set a $45.00 price target (up from $40.00) on shares of Cisco Systems in a report on Thursday, November 16th. Jefferies Group upped their price target on Cisco Systems to $40.00 and gave the company a buy rating in a report on Thursday, November 16th. Finally, Citigroup reaffirmed a buy rating and set a $40.00 price target on shares of Cisco Systems in a report on Thursday, November 16th. They noted that the move was a valuation call. Ten analysts have rated the stock with a hold rating, twenty-six have given a buy rating and one has issued a strong buy rating to the company. The stock has an average rating of Buy and an average price target of $43.66.
Shares of Cisco Systems (CSCO) opened at $44.00 on Wednesday. The company has a quick ratio of 2.38, a current ratio of 2.43 and a debt-to-equity ratio of 0.49. Cisco Systems has a 1-year low of $30.36 and a 1-year high of $45.13. The company has a market capitalization of $211,970.80, a price-to-earnings ratio of -137.50, a price-to-earnings-growth ratio of 2.96 and a beta of 1.23.
Cisco Systems (NASDAQ:CSCO) last released its earnings results on Wednesday, February 14th. The network equipment provider reported $0.63 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.59 by $0.04. Cisco Systems had a positive return on equity of 17.77% and a negative net margin of 3.00%. The business had revenue of $11.89 billion for the quarter, compared to the consensus estimate of $11.82 billion. During the same period in the previous year, the company posted $0.57 earnings per share. sell-side analysts anticipate that Cisco Systems will post 2.32 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 25th. Shareholders of record on Thursday, April 5th will be given a $0.33 dividend. This is a boost from Cisco Systems’s previous quarterly dividend of $0.29. The ex-dividend date of this dividend is Wednesday, April 4th. This represents a $1.32 dividend on an annualized basis and a yield of 3.00%. Cisco Systems’s dividend payout ratio is presently -362.50%.
Cisco Systems announced that its Board of Directors has approved a share repurchase program on Wednesday, February 14th that authorizes the company to repurchase $25.00 billion in shares. This repurchase authorization authorizes the network equipment provider to buy shares of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s leadership believes its stock is undervalued.
In other Cisco Systems news, Director Arun Sarin sold 14,189 shares of the company’s stock in a transaction dated Tuesday, February 20th. The stock was sold at an average price of $44.10, for a total value of $625,734.90. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Rebecca Jacoby sold 75,021 shares of the company’s stock in a transaction dated Tuesday, December 19th. The stock was sold at an average price of $38.42, for a total value of $2,882,306.82. Following the completion of the sale, the senior vice president now owns 257,476 shares of the company’s stock, valued at approximately $9,892,227.92. The disclosure for this sale can be found here. In the last 90 days, insiders sold 104,440 shares of company stock valued at $4,086,782. Company insiders own 0.05% of the company’s stock.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Richard Bernstein Advisors LLC boosted its stake in shares of Cisco Systems by 21.2% in the second quarter. Richard Bernstein Advisors LLC now owns 269,441 shares of the network equipment provider’s stock worth $8,434,000 after acquiring an additional 47,211 shares during the period. Stratos Wealth Partners LTD. boosted its stake in Cisco Systems by 10.4% during the second quarter. Stratos Wealth Partners LTD. now owns 152,990 shares of the network equipment provider’s stock valued at $4,789,000 after buying an additional 14,395 shares during the last quarter. Eads & Heald Investment Counsel boosted its stake in Cisco Systems by 15.7% during the second quarter. Eads & Heald Investment Counsel now owns 42,453 shares of the network equipment provider’s stock valued at $1,329,000 after buying an additional 5,765 shares during the last quarter. Pzena Investment Management LLC boosted its stake in Cisco Systems by 0.4% during the third quarter. Pzena Investment Management LLC now owns 2,517,046 shares of the network equipment provider’s stock valued at $84,648,000 after buying an additional 10,265 shares during the last quarter. Finally, Forward Management LLC bought a new position in Cisco Systems during the third quarter valued at approximately $869,000. 75.06% of the stock is owned by hedge funds and other institutional investors.
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Cisco Systems Company Profile
Cisco Systems, Inc designs and sells a range of products, provides services and delivers integrated solutions to develop and connect networks around the world. The Company operates through three geographic segments: Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific, Japan and China (APJC).
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