Cisco Systems Inc. (CSCO) Lifted to Buy 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 report released on Tuesday. The firm currently has a $34.00 price target on the network equipment provider’s stock. Zacks Investment Research’s price objective would indicate a potential upside of 12.51% from the stock’s previous close.
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.”
CSCO has been the subject of several other research reports. Deutsche Bank AG restated a “buy” rating and issued a $37.00 price objective on shares of Cisco Systems in a report on Monday. Vetr lowered Cisco Systems from a “buy” rating to a “hold” rating and set a $32.05 target price on the stock. in a research report on Tuesday, September 13th. Jefferies Group reaffirmed a “buy” rating and set a $35.00 target price on shares of Cisco Systems in a research report on Monday, August 29th. JPMorgan Chase & Co. reaffirmed a “hold” rating on shares of Cisco Systems in a research report on Wednesday, August 17th. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of Cisco Systems in a research report on Thursday, August 18th. One analyst has rated the stock with a sell rating, twelve have given a hold rating, twenty-four have assigned a buy rating and one has issued a strong buy rating to the company. Cisco Systems presently has a consensus rating of “Buy” and a consensus target price of $32.56.
Cisco Systems (NASDAQ:CSCO) opened at 30.22 on Tuesday. The stock has a 50 day moving average price of $31.26 and a 200 day moving average price of $29.54. The firm has a market capitalization of $151.53 billion, a price-to-earnings ratio of 14.32 and a beta of 1.48. Cisco Systems has a 1-year low of $22.46 and a 1-year high of $31.95.
Cisco Systems (NASDAQ:CSCO) last announced its quarterly earnings data on Wednesday, August 17th. The network equipment provider reported $0.63 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.60 by $0.03. The business earned $12.60 billion during the quarter, compared to analyst estimates of $12.57 billion. Cisco Systems had a return on equity of 17.64% and a net margin of 21.81%. The company’s revenue was down 1.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.59 earnings per share. Analysts predict that Cisco Systems will post $2.43 EPS for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 26th. Stockholders of record on Wednesday, October 5th will be issued a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 3.44%. The ex-dividend date is Monday, October 3rd. Cisco Systems’s dividend payout ratio is presently 49.06%.
In other news, SVP Karen Walker sold 10,244 shares of the business’s stock in a transaction that occurred on Tuesday, September 20th. The stock was sold at an average price of $31.17, for a total transaction of $319,305.48. Following the completion of the sale, the senior vice president now owns 138,625 shares in the company, valued at $4,320,941.25. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Steven M. West sold 15,000 shares of the business’s stock in a transaction that occurred on Wednesday, July 20th. The stock was sold at an average price of $30.20, for a total value of $453,000.00. Following the sale, the director now owns 26,804 shares of the company’s stock, valued at approximately $809,480.80. The disclosure for this sale can be found here. Insiders own 0.13% of the company’s stock.
Several large investors have recently modified their holdings of the stock. British Columbia Investment Management Corp boosted its stake in shares of Cisco Systems by 4.4% in the second quarter. British Columbia Investment Management Corp now owns 3,099,966 shares of the network equipment provider’s stock valued at $88,938,000 after buying an additional 129,545 shares during the period. Eagle Asset Management Inc. boosted its stake in shares of Cisco Systems by 3.8% in the second quarter. Eagle Asset Management Inc. now owns 5,101,847 shares of the network equipment provider’s stock valued at $146,372,000 after buying an additional 189,013 shares during the period. Primecap Management Co. CA boosted its stake in shares of Cisco Systems by 16.0% in the first quarter. Primecap Management Co. CA now owns 29,127,015 shares of the network equipment provider’s stock valued at $829,246,000 after buying an additional 4,013,625 shares during the period. Rockefeller Financial Services Inc. boosted its stake in shares of Cisco Systems by 12.8% in the second quarter. Rockefeller Financial Services Inc. now owns 439,424 shares of the network equipment provider’s stock valued at $12,607,000 after buying an additional 50,020 shares during the period. Finally, Panagora Asset Management Inc. boosted its stake in shares of Cisco Systems by 1.4% in the first quarter. Panagora Asset Management Inc. now owns 4,952,008 shares of the network equipment provider’s stock valued at $140,984,000 after buying an additional 70,367 shares during the period. Institutional investors and hedge funds own 75.06% of the company’s stock.
Cisco Systems Company Profile
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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