Cisco Systems Inc. (CSCO) Upgraded at Zacks Investment Research
Cisco Systems Inc. (NASDAQ:CSCO) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Tuesday. The brokerage currently has a $34.00 price target on the network equipment provider’s stock. Zacks Investment Research’s price objective would suggest a potential upside of 12.51% from the company’s current price.
According to Zacks, “Cisco Systems is the leading provider of IP-based networking and other products. The company’s fiscal fourth-quarter earnings were above the Zacks Consensus Estimate. We are positive about the company’s market position, innovative prowess, product range, growth initiatives, new investments and dividend payout. Additionally, overall growth prospects remain positive because of the drive toward cloud computing and increasing data flow on carrier and computing networks. Moreover, partnerships with the likes of salesforce.com and Pure Storage is positive for the company's top-line growth. The recent acquisition of CloudLock will help Cisco to broaden its efforts and meet the changing compliance and security needs. However, the increasing competition and challenges in China remain concerns.”
Several other brokerages also recently weighed in on CSCO. RBC Capital Markets reiterated an “outperform” rating and set a $35.00 target price on shares of Cisco Systems in a research note on Sunday, September 4th. Vetr downgraded shares of Cisco Systems from a “buy” rating to a “hold” rating and set a $32.71 price objective for the company. in a research report on Monday, September 5th. Deutsche Bank AG restated a “buy” rating and issued a $35.00 price objective on shares of Cisco Systems in a research report on Tuesday, September 6th. Raymond James Financial Inc. raised their price objective on shares of Cisco Systems from $32.00 to $34.00 and gave the company an “outperform” rating in a research report on Friday, September 23rd. Finally, JMP Securities restated a “market perform” rating on shares of Cisco Systems in a research report on Wednesday, October 5th. One analyst has rated the stock with a sell rating, twelve have issued a hold rating, twenty-four have issued a buy rating and one has assigned a strong buy rating to the stock. The stock currently has an average rating of “Buy” and an average target price of $32.56.
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Cisco Systems (NASDAQ:CSCO) traded up 1.340% during midday trading on Tuesday, reaching $30.625. The company’s stock had a trading volume of 6,801,656 shares. The firm has a market capitalization of $153.56 billion, a P/E ratio of 14.514 and a beta of 1.48. The company’s 50-day moving average is $31.26 and its 200 day moving average is $29.54. Cisco Systems has a 52 week low of $22.46 and a 52 week high of $31.95.
Cisco Systems (NASDAQ:CSCO) last announced its earnings results on Wednesday, August 17th. The network equipment provider reported $0.63 earnings per share for the quarter, topping the consensus estimate of $0.60 by $0.03. Cisco Systems had a net margin of 21.81% and a return on equity of 17.64%. The business earned $12.60 billion during the quarter, compared to the consensus estimate of $12.57 billion. During the same quarter in the prior year, the firm earned $0.59 earnings per share. The business’s quarterly revenue was down 1.6% compared to the same quarter last year. Analysts expect that Cisco Systems will post $2.43 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 26th. Stockholders of record on Wednesday, October 5th will be given a $0.26 dividend. This represents a $1.04 annualized dividend and a dividend yield of 3.44%. The ex-dividend date of this dividend is Monday, October 3rd. Cisco Systems’s payout ratio is currently 49.06%.
In other news, SVP Karen Walker sold 10,244 shares of the business’s stock in a transaction dated Tuesday, September 20th. The shares were sold at an average price of $31.17, for a total value of $319,305.48. Following the completion of the sale, the senior vice president now owns 138,625 shares of the company’s stock, valued at approximately $4,320,941.25. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director John L. Hennessy sold 15,000 shares of the business’s stock in a transaction dated Wednesday, September 21st. The stock was sold at an average price of $31.25, for a total transaction of $468,750.00. Following the completion of the sale, the director now directly owns 88,369 shares of the company’s stock, valued at approximately $2,761,531.25. The disclosure for this sale can be found here. 0.13% of the stock is currently owned by insiders.
Large investors have recently added to or reduced their stakes in the company. Arvest Bank Trust Division increased its stake in Cisco Systems by 1.7% in the first quarter. Arvest Bank Trust Division now owns 205,497 shares of the network equipment provider’s stock valued at $5,850,000 after buying an additional 3,366 shares during the last quarter. Sii Investments Inc. WI increased its stake in shares of Cisco Systems by 53.4% in the first quarter. Sii Investments Inc. WI now owns 84,737 shares of the network equipment provider’s stock worth $2,417,000 after buying an additional 29,495 shares in the last quarter. Investment Centers of America Inc. increased its stake in shares of Cisco Systems by 37.3% in the first quarter. Investment Centers of America Inc. now owns 33,945 shares of the network equipment provider’s stock worth $967,000 after buying an additional 9,221 shares in the last quarter. Glenmede Trust Co. NA increased its stake in shares of Cisco Systems by 5.9% in the first quarter. Glenmede Trust Co. NA now owns 4,551,025 shares of the network equipment provider’s stock worth $129,566,000 after buying an additional 254,106 shares in the last quarter. Finally, RKL Wealth Management LLC acquired a new stake in shares of Cisco Systems during the first quarter worth $633,000. 75.06% of the stock is owned by institutional investors.
About Cisco Systems
Cisco System, Inc (Cisco) designs and sells lines of products, provides services and delivers integrated solutions to develop and connect networks around the world, building the Internet. The Company is engaged in designing, manufacturing and selling Internet Protocol (IP)-based networking and other products related to the communications and information technology (IT) industry, and provides services associated with these products and their use.
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