Shares of Cisco Systems, Inc. (NASDAQ:CSCO) traded up 7.5% on Thursday following a stronger than expected earnings report. The stock traded as high as $56.40 and last traded at $55.93. 45,116,333 shares were traded during mid-day trading, an increase of 116% from the average session volume of 20,864,156 shares. The stock had previously closed at $52.02.
The network equipment provider reported $0.78 EPS for the quarter, beating analysts’ consensus estimates of $0.77 by $0.01. Cisco Systems had a return on equity of 28.86% and a net margin of 25.76%. The company had revenue of $12.96 billion during the quarter, compared to the consensus estimate of $12.89 billion. During the same quarter in the prior year, the firm earned $0.66 EPS. The company’s quarterly revenue was up 4.0% compared to the same quarter last year.
Cisco Systems announced that its Board of Directors has approved a share repurchase plan on Wednesday, February 13th that authorizes the company to buyback $15.00 billion in shares. This buyback authorization authorizes the network equipment provider to reacquire up to 6.5% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board believes its shares are undervalued.
A number of equities research analysts have recently commented on the company. JPMorgan Chase & Co. reiterated a “buy” rating on shares of Cisco Systems in a research report on Thursday. Bank of America set a $62.00 price objective on Cisco Systems and gave the company a “buy” rating in a research report on Thursday. MKM Partners increased their price objective on Cisco Systems to $56.00 and gave the company a “neutral” rating in a research report on Thursday. Morgan Stanley boosted their target price on shares of Cisco Systems from $49.00 to $51.00 and gave the company an “equal weight” rating in a research note on Thursday. Finally, Zacks Investment Research downgraded shares of Cisco Systems from a “buy” rating to a “hold” rating in a research note on Thursday. Six equities research analysts have rated the stock with a hold rating and twenty have given a buy rating to the stock. The company has a consensus rating of “Buy” and an average price target of $55.52.
In other news, EVP David Goeckeler sold 30,000 shares of the company’s stock in a transaction on Tuesday, March 12th. The shares were sold at an average price of $52.07, for a total value of $1,562,100.00. Following the transaction, the executive vice president now directly owns 419,439 shares of the company’s stock, valued at $21,840,188.73. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Kelly A. Kramer sold 70,000 shares of the company’s stock in a transaction on Thursday, February 28th. The stock was sold at an average price of $51.70, for a total transaction of $3,619,000.00. Following the completion of the transaction, the chief financial officer now directly owns 420,696 shares in the company, valued at $21,749,983.20. The disclosure for this sale can be found here. Insiders sold 115,000 shares of company stock worth $5,926,000 over the last ninety days. 0.03% of the stock is currently owned by company insiders.
Several hedge funds and other institutional investors have recently bought and sold shares of CSCO. M Holdings Securities Inc. boosted its holdings in Cisco Systems by 9.1% in the first quarter. M Holdings Securities Inc. now owns 67,044 shares of the network equipment provider’s stock worth $3,620,000 after purchasing an additional 5,595 shares in the last quarter. Weiss Asset Management LP bought a new stake in Cisco Systems in the first quarter worth $213,000. Dixon Hubard Feinour & Brown Inc. VA boosted its holdings in Cisco Systems by 3.6% in the first quarter. Dixon Hubard Feinour & Brown Inc. VA now owns 84,758 shares of the network equipment provider’s stock worth $4,576,000 after purchasing an additional 2,907 shares in the last quarter. Horizon Investments LLC boosted its holdings in Cisco Systems by 34.4% in the first quarter. Horizon Investments LLC now owns 36,702 shares of the network equipment provider’s stock worth $1,969,000 after purchasing an additional 9,389 shares in the last quarter. Finally, Laurel Wealth Advisors Inc. boosted its holdings in Cisco Systems by 3.0% in the first quarter. Laurel Wealth Advisors Inc. now owns 96,739 shares of the network equipment provider’s stock worth $5,223,000 after purchasing an additional 2,781 shares in the last quarter. 69.04% of the stock is currently owned by institutional investors and hedge funds.
The firm has a market capitalization of $271.47 billion, a PE ratio of 24.08, a price-to-earnings-growth ratio of 2.73 and a beta of 1.21. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.74 and a current ratio of 1.80.
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Cisco Systems Company Profile (NASDAQ:CSCO)
Cisco Systems, Inc designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry worldwide. The company offers switching products; routing products that interconnect public and private wireline and mobile networks; data center products; and wireless access points for use in voice, video, and data applications.
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