Cisco Systems, Inc. Announces Quarterly Dividend of $0.41 (NASDAQ:CSCO)

Cisco Systems, Inc. (NASDAQ:CSCO) declared a quarterly dividend on Wednesday, May 14th, RTT News reports. Shareholders of record on Thursday, July 3rd will be paid a dividend of 0.41 per share by the network equipment provider on Wednesday, July 23rd. This represents a $1.64 dividend on an annualized basis and a yield of 2.68%.

Cisco Systems has increased its dividend by an average of 2.6% per year over the last three years and has increased its dividend every year for the last 13 years. Cisco Systems has a dividend payout ratio of 41.2% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Cisco Systems to earn $3.21 per share next year, which means the company should continue to be able to cover its $1.64 annual dividend with an expected future payout ratio of 51.1%.

Cisco Systems Trading Down 0.8%

NASDAQ:CSCO opened at $61.29 on Thursday. The company has a 50-day moving average price of $58.65 and a 200-day moving average price of $59.54. The stock has a market cap of $243.83 billion, a price-to-earnings ratio of 26.76, a P/E/G ratio of 4.16 and a beta of 0.89. The company has a current ratio of 0.87, a quick ratio of 0.79 and a debt-to-equity ratio of 0.43. Cisco Systems has a 12 month low of $44.50 and a 12 month high of $66.50.

Cisco Systems (NASDAQ:CSCO) last posted its quarterly earnings data on Wednesday, May 14th. The network equipment provider reported $0.96 earnings per share for the quarter, beating the consensus estimate of $0.91 by $0.05. Cisco Systems had a return on equity of 26.08% and a net margin of 16.96%. The business had revenue of $14.15 billion for the quarter, compared to analysts’ expectations of $14.05 billion. During the same period in the previous year, the firm posted $0.88 EPS. Equities analysts predict that Cisco Systems will post 3.04 EPS for the current year.

Analyst Upgrades and Downgrades

CSCO has been the topic of a number of recent research reports. Rosenblatt Securities reduced their target price on shares of Cisco Systems from $80.00 to $63.00 and set a “buy” rating on the stock in a research report on Tuesday, April 22nd. UBS Group upped their price objective on shares of Cisco Systems from $62.00 to $70.00 and gave the stock a “neutral” rating in a report on Thursday, February 13th. Wells Fargo & Company reaffirmed an “equal weight” rating on shares of Cisco Systems in a research note on Thursday, March 6th. StockNews.com cut Cisco Systems from a “strong-buy” rating to a “buy” rating in a research report on Wednesday, March 5th. Finally, Barclays reaffirmed an “equal weight” rating on shares of Cisco Systems in a research report on Thursday, March 6th. Seven investment analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and two have given a strong buy rating to the company’s stock. According to data from MarketBeat, Cisco Systems has an average rating of “Moderate Buy” and a consensus target price of $65.05.

Cisco Systems declared that its Board of Directors has approved a stock repurchase plan on Wednesday, February 12th that permits the company to buyback $15.00 billion in shares. This buyback authorization permits the network equipment provider to reacquire up to 6% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s management believes its stock is undervalued.

Insider Activity

In related news, SVP Maria Victoria Wong sold 762 shares of the business’s stock in a transaction that occurred on Wednesday, March 12th. The shares were sold at an average price of $60.99, for a total transaction of $46,474.38. Following the completion of the sale, the senior vice president now directly owns 44,155 shares in the company, valued at approximately $2,693,013.45. The trade was a 1.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Thimaya K. Subaiya sold 2,065 shares of the stock in a transaction that occurred on Wednesday, March 12th. The stock was sold at an average price of $60.70, for a total transaction of $125,345.50. Following the completion of the transaction, the executive vice president now owns 191,184 shares in the company, valued at $11,604,868.80. The trade was a 1.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 66,547 shares of company stock valued at $4,275,553 in the last ninety days. 0.01% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

An institutional investor recently raised its position in Cisco Systems stock. Revolve Wealth Partners LLC increased its position in Cisco Systems, Inc. (NASDAQ:CSCO) by 37.0% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 9,156 shares of the network equipment provider’s stock after acquiring an additional 2,474 shares during the quarter. Revolve Wealth Partners LLC’s holdings in Cisco Systems were worth $542,000 at the end of the most recent quarter. Institutional investors own 73.33% of the company’s stock.

Cisco Systems Company Profile

Cisco Systems, Inc designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization.