Cisco Systems, Inc. (NASDAQ:CSCO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.

According to Zacks, “Cisco's expanding footprint in the rapidly growing security market presents significant growth opportunity. Further, the company’s focus on driving cost improvement, operational efficiencies and productivity will help in margin expansion. Additionally, partnerships with Telenor, Apple, IBM and Microsoft are positive in our view. Moreover, the recently updated ACI solution will boost expertise in the SDN market. On a year-to-date basis, the company has outperformed the industry it belongs to. However, top-line will continue suffer from intensifying competition, slowing order growth from service providers and challenges in the emerging markets. We continue to believe that the time-consuming transition to subscription-based business model will hurt top line growth at least in the near term.”

Several other research analysts have also recently issued reports on the stock. Vetr raised shares of Cisco Systems from a “hold” rating to a “buy” rating and set a $32.45 price target for the company in a report on Thursday, July 6th. BidaskClub raised shares of Cisco Systems from a “hold” rating to a “buy” rating in a report on Wednesday, June 28th. Drexel Hamilton reissued a “buy” rating and set a $39.00 price target on shares of Cisco Systems in a report on Sunday, June 25th. Sanford C. Bernstein set a $38.00 price target on shares of Cisco Systems and gave the stock a “buy” rating in a report on Saturday, July 1st. Finally, Deutsche Bank AG set a $40.00 price target on shares of Cisco Systems and gave the stock a “buy” rating in a report on Wednesday, August 2nd. One equities research analyst has rated the stock with a sell rating, fourteen have given a hold rating and twenty-one have given a buy rating to the company’s stock. The company has an average rating of “Buy” and a consensus price target of $35.30.

Cisco Systems (NASDAQ CSCO) traded up 0.09% during trading on Tuesday, hitting $33.57. The company’s stock had a trading volume of 5,576,350 shares. The firm has a market cap of $166.24 billion, a PE ratio of 17.67 and a beta of 1.21. Cisco Systems has a one year low of $29.12 and a one year high of $34.60. The company has a 50-day moving average of $32.80 and a 200 day moving average of $32.33.

Cisco Systems (NASDAQ:CSCO) last announced its earnings results on Wednesday, August 16th. The network equipment provider reported $0.61 EPS for the quarter, meeting analysts’ consensus estimates of $0.61. Cisco Systems had a net margin of 20.02% and a return on equity of 16.91%. The business had revenue of $12.13 billion during the quarter, compared to analysts’ expectations of $12.07 billion. During the same period in the prior year, the company earned $0.63 earnings per share. The business’s revenue was down 4.0% compared to the same quarter last year. On average, equities analysts forecast that Cisco Systems will post $2.43 earnings per share for the current year.

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In other news, CAO Prat Bhatt sold 25,638 shares of Cisco Systems stock in a transaction that occurred on Wednesday, September 13th. The shares were sold at an average price of $32.06, for a total value of $821,954.28. Following the transaction, the chief accounting officer now directly owns 119,996 shares of the company’s stock, valued at $3,847,071.76. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, SVP Mark D. Chandler sold 65,000 shares of Cisco Systems stock in a transaction that occurred on Monday, September 18th. The stock was sold at an average price of $32.43, for a total transaction of $2,107,950.00. The disclosure for this sale can be found here. Insiders have sold a total of 485,138 shares of company stock worth $15,347,574 over the last 90 days. 0.11% of the stock is owned by insiders.

Institutional investors and hedge funds have recently made changes to their positions in the stock. Washington Trust Bank grew its position in Cisco Systems by 2.5% during the second quarter. Washington Trust Bank now owns 113,153 shares of the network equipment provider’s stock valued at $3,542,000 after purchasing an additional 2,726 shares in the last quarter. Holderness Investments Co. lifted its stake in shares of Cisco Systems by 12.1% in the first quarter. Holderness Investments Co. now owns 66,740 shares of the network equipment provider’s stock worth $2,256,000 after buying an additional 7,186 shares during the last quarter. Pioneer Investment Management Inc. lifted its stake in shares of Cisco Systems by 5.2% in the first quarter. Pioneer Investment Management Inc. now owns 8,258,748 shares of the network equipment provider’s stock worth $279,146,000 after buying an additional 408,875 shares during the last quarter. Congress Asset Management Co. MA lifted its stake in shares of Cisco Systems by 4.1% in the first quarter. Congress Asset Management Co. MA now owns 147,410 shares of the network equipment provider’s stock worth $4,982,000 after buying an additional 5,796 shares during the last quarter. Finally, Investment House LLC lifted its stake in shares of Cisco Systems by 7.5% in the second quarter. Investment House LLC now owns 85,400 shares of the network equipment provider’s stock worth $2,673,000 after buying an additional 5,975 shares during the last quarter. 75.32% of the stock is currently owned by hedge funds and other institutional investors.

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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