Stock Buyback Program Authorized by Cisco Systems (CSCO) Board

Cisco Systems (NASDAQ:CSCO) declared that its board has approved a stock buyback plan, which allows the company to buyback $25.00 billion in outstanding shares on Wednesday, February 14th, EventVestor reports. This buyback authorization allows the network equipment provider to reacquire shares of its stock through open market purchases. Shares buyback plans are often an indication that the company’s board believes its shares are undervalued.

Several equities analysts recently commented on CSCO shares. Royal Bank of Canada reaffirmed a “buy” rating and set a $36.00 target price on shares of Cisco Systems in a report on Wednesday, November 15th. BidaskClub raised shares of Cisco Systems from a “buy” rating to a “strong-buy” rating in a report on Friday, January 5th. Vetr raised shares of Cisco Systems from a “buy” rating to a “strong-buy” rating and set a $44.13 target price on the stock in a report on Monday, February 5th. KeyCorp set a $49.00 target price on shares of Cisco Systems and gave the company a “buy” rating in a report on Thursday. Finally, BMO Capital Markets increased their target price on shares of Cisco Systems from $36.00 to $43.00 and gave the company a “market perform” rating in a report on Thursday. Eleven equities research analysts have rated the stock with a hold rating, twenty-four have given a buy rating and two have issued a strong buy rating to the company’s stock. The company has an average rating of “Buy” and a consensus price target of $42.94.

Shares of Cisco Systems (NASDAQ:CSCO) traded up $0.86 during midday trading on Thursday, reaching $42.09. 43,788,000 shares of the company were exchanged, compared to its average volume of 28,573,893. Cisco Systems has a one year low of $30.36 and a one year high of $44.44. The stock has a market cap of $219,270.00, a PE ratio of -131.53, a P/E/G ratio of 3.71 and a beta of 1.23. The company has a debt-to-equity ratio of 0.39, a quick ratio of 2.81 and a current ratio of 2.87.

Cisco Systems (NASDAQ:CSCO) last issued its quarterly earnings results on Wednesday, February 14th. The network equipment provider reported $0.63 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.59 by $0.04. Cisco Systems had a net margin of 20.26% and a return on equity of 16.64%. During the same quarter in the previous year, the company posted $0.57 earnings per share. research analysts anticipate that Cisco Systems will post 2.23 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 25th. Investors of record on Thursday, April 5th will be given a dividend of $0.33 per share. This is a boost from Cisco Systems’s previous quarterly dividend of $0.29. This represents a $1.32 dividend on an annualized basis and a yield of 3.14%. Cisco Systems’s dividend payout ratio (DPR) is -362.50%.

In related news, SVP Karen Walker sold 5,786 shares of Cisco Systems stock in a transaction dated Wednesday, November 22nd. The shares were sold at an average price of $36.49, for a total transaction of $211,131.14. Following the completion of the transaction, the senior vice president now directly owns 176,418 shares of the company’s stock, valued at approximately $6,437,492.82. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, SVP Rebecca Jacoby sold 75,021 shares of Cisco Systems stock in a transaction dated Tuesday, December 19th. The shares were 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 of the company’s stock, valued at $9,892,227.92. The disclosure for this sale can be found here. Over the last three months, insiders have sold 348,643 shares of company stock valued at $12,892,271. 0.05% of the stock is currently owned by corporate insiders.

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About Cisco Systems

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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