Morgan Stanley Raises Cisco Systems (CSCO) Price Target to $51.00

Cisco Systems (NASDAQ:CSCO) had its target price lifted by research analysts at Morgan Stanley from $49.00 to $51.00 in a note issued to investors on Thursday, BenzingaRatingsTable reports. The firm presently has an “equal weight” rating on the network equipment provider’s stock. Morgan Stanley’s target price suggests a potential downside of 8.14% from the company’s current price.

Several other research firms also recently weighed in on CSCO. Goldman Sachs Group downgraded Cisco Systems from a “conviction-buy” rating to a “buy” rating and lifted their target price for the company from $58.00 to $62.00 in a research report on Tuesday, April 16th. Oppenheimer lifted their target price on Cisco Systems from $52.00 to $60.00 and gave the company an “outperform” rating in a research report on Friday, April 26th. BidaskClub downgraded Cisco Systems from a “strong-buy” rating to a “buy” rating in a research report on Tuesday, May 7th. KeyCorp lifted their target price on Cisco Systems from $55.00 to $58.00 and gave the company an “overweight” rating in a research report on Monday, March 25th. Finally, Jefferies Financial Group reiterated a “buy” rating and set a $62.00 target price (up from $55.00) on shares of Cisco Systems in a research report on Thursday. They noted that the move was a valuation call. Six analysts have rated the stock with a hold rating and twenty have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $55.17.

NASDAQ CSCO traded up $3.50 on Thursday, hitting $55.52. 15,999,749 shares of the company traded hands, compared to its average volume of 20,591,275. The company has a market capitalization of $247.14 billion, a PE ratio of 23.72, a price-to-earnings-growth ratio of 2.67 and a beta of 1.21. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.74 and a current ratio of 1.80. Cisco Systems has a 52-week low of $40.25 and a 52-week high of $57.53.

Cisco Systems (NASDAQ:CSCO) last released its earnings results on Wednesday, May 15th. The network equipment provider reported $0.78 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.77 by $0.01. The company had revenue of $12.96 billion for the quarter, compared to the consensus estimate of $12.89 billion. Cisco Systems had a return on equity of 27.58% and a net margin of 25.31%. Cisco Systems’s quarterly revenue was up 4.0% compared to the same quarter last year. During the same period in the previous year, the business earned $0.66 earnings per share. On average, sell-side analysts forecast that Cisco Systems will post 2.75 EPS for the current year.

Cisco Systems announced that its board has approved a share buyback plan on Wednesday, February 13th that allows the company to buyback $15.00 billion in outstanding shares. This buyback authorization allows the network equipment provider to purchase up to 6.5% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.

In other news, Director Roderick C. Mcgeary sold 15,000 shares of Cisco Systems stock in a transaction dated Tuesday, February 19th. The stock was sold at an average price of $49.66, for a total value of $744,900.00. Following the sale, the director now directly owns 102,898 shares of the company’s stock, valued at $5,109,914.68. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP David Goeckeler sold 30,000 shares of Cisco Systems stock in a transaction dated Tuesday, March 12th. The stock was sold at an average price of $52.07, for a total value of $1,562,100.00. Following the completion of the sale, the executive vice president now directly owns 419,439 shares in the company, valued at $21,840,188.73. The disclosure for this sale can be found here. Over the last three months, insiders have sold 115,000 shares of company stock worth $5,926,000. Insiders own 0.03% of the company’s stock.

Several hedge funds have recently modified their holdings of CSCO. Castle Rock Wealth Management LLC bought a new stake in Cisco Systems during the first quarter worth approximately $18,277,000. Stone House Investment Management LLC bought a new stake in Cisco Systems during the first quarter worth approximately $27,000. Phocas Financial Corp. bought a new stake in Cisco Systems during the fourth quarter worth approximately $26,000. Lucia Wealth Services LLC increased its stake in Cisco Systems by 435.5% during the first quarter. Lucia Wealth Services LLC now owns 664 shares of the network equipment provider’s stock worth $36,000 after acquiring an additional 540 shares during the last quarter. Finally, Essex Investment Management Co. LLC bought a new stake in Cisco Systems during the fourth quarter worth approximately $29,000. 69.04% of the stock is currently owned by hedge funds and other institutional investors.

About Cisco Systems

Cisco Systems, Inc designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry worldwide. The company offers switching products; routing products that interconnect public and private wireline and mobile networks; data center products; and wireless access points for use in voice, video, and data applications.

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