Cisco Systems (CSCO) Downgraded by Zacks Investment Research

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

According to Zacks, “Shares of the IP-based networking company, Cisco have outperformed the industry over the past one year. We believe that the company’s expanding footprint in the rapidly growing security market presents significant growth opportunity. Additionally, partnerships with Telenor, Apple, IBM and Microsoft are positive in our view. Additionally, the company’s Application Centric Infrastructure (ACI) solution is currently used by more than 4K customers. The ACI solution was recently enhanced with new features that have aided growth. Further, the planned acquisition of Broadsoft will boost company's recurring revenue base. Moreover, the company's collaboration with Google Cloud to offer hybrid cloud solution is a key catalyst. However, intense competition from peers and challenges in the emerging markets reamins a headwind.”

A number of other brokerages also recently issued reports on CSCO. Royal Bank of Canada reiterated a “buy” rating and issued a $36.00 price target on shares of Cisco Systems in a research note on Wednesday, November 15th. Vetr downgraded shares of Cisco Systems from a “buy” rating to a “hold” rating and set a $34.13 price target for the company. in a research note on Monday, September 25th. BidaskClub upgraded shares of Cisco Systems from a “buy” rating to a “strong-buy” rating in a research note on Friday, January 5th. BMO Capital Markets reiterated a “hold” rating and issued a $32.00 price target on shares of Cisco Systems in a research note on Thursday, September 28th. Finally, Credit Suisse Group reiterated a “hold” rating and issued a $35.00 price target on shares of Cisco Systems in a research note on Friday, October 6th. Thirteen investment analysts have rated the stock with a hold rating, twenty-two have assigned a buy rating and one has assigned a strong buy rating to the stock. The company has a consensus rating of “Buy” and a consensus price target of $38.47.

Shares of Cisco Systems (CSCO) traded up $0.66 during mid-day trading on Thursday, hitting $41.20. 24,427,100 shares of the company were exchanged, compared to its average volume of 23,202,146. The company has a quick ratio of 2.81, a current ratio of 2.87 and a debt-to-equity ratio of 0.39. The firm has a market capitalization of $204,540.00, a PE ratio of 21.35, a P/E/G ratio of 3.67 and a beta of 1.19. Cisco Systems has a 52-week low of $29.92 and a 52-week high of $41.32.

Cisco Systems (NASDAQ:CSCO) last announced its quarterly earnings data on Wednesday, November 15th. The network equipment provider reported $0.61 earnings per share for the quarter, beating analysts’ consensus estimates of $0.60 by $0.01. The firm had revenue of $12.14 billion during the quarter, compared to analysts’ expectations of $12.11 billion. Cisco Systems had a net margin of 20.26% and a return on equity of 16.64%. The business’s quarterly revenue was down 1.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.61 earnings per share. equities analysts forecast that Cisco Systems will post 2.21 earnings per share for the current fiscal year.

In other news, insider John T. Chambers sold 250,000 shares of the company’s stock in a transaction on Wednesday, November 22nd. The shares were sold at an average price of $36.50, for a total transaction of $9,125,000.00. Following the transaction, the insider now directly owns 712,736 shares of the company’s stock, valued at approximately $26,014,864. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, SVP Rebecca Jacoby sold 75,021 shares of the company’s stock in a transaction on Tuesday, December 19th. The stock was sold at an average price of $38.42, for a total transaction of $2,882,306.82. Following the transaction, the senior vice president now directly owns 257,476 shares in the company, valued at $9,892,227.92. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 348,643 shares of company stock worth $12,892,271. Corporate insiders own 0.05% of the company’s stock.

Several large investors have recently bought and sold shares of the company. Barnett & Company Inc. boosted its position in shares of Cisco Systems by 1,511.5% in the 2nd quarter. Barnett & Company Inc. now owns 3,223 shares of the network equipment provider’s stock worth $101,000 after buying an additional 3,023 shares in the last quarter. Stonehearth Capital Management LLC purchased a new stake in shares of Cisco Systems in the 4th quarter worth about $102,000. Tortoise Investment Management LLC boosted its position in shares of Cisco Systems by 36.1% in the 2nd quarter. Tortoise Investment Management LLC now owns 3,309 shares of the network equipment provider’s stock worth $104,000 after buying an additional 878 shares in the last quarter. Mountain Capital Investment Advisors Inc purchased a new stake in shares of Cisco Systems in the 2nd quarter worth about $104,000. Finally, Grove Bank & Trust boosted its position in shares of Cisco Systems by 141.3% in the 2nd quarter. Grove Bank & Trust now owns 3,620 shares of the network equipment provider’s stock worth $113,000 after buying an additional 2,120 shares in the last quarter. 75.60% of the stock is currently owned by institutional investors and hedge funds.

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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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