Cisco Systems (CSCO) Raised to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Cisco Systems (NASDAQ:CSCO) from a hold rating to a buy rating in a research report report published on Wednesday. The brokerage currently has $50.00 price objective on the network equipment provider’s stock.
According to Zacks, “Cisco reported impressive second-quarter fiscal 2018 results. Both earnings and revenues increased on a year-over-year basis. The growth was driven by strong contribution from acquisitions, security, Infrastructure Platforms and applications. We believe that the company’s expanding footprint in the rapidly growing security market presents significant growth opportunity. Additionally, partnerships with Telenor, Apple, IBM, Microsoft, Google Cloud, Viacom and Alibaba are positive in our view. Moreover, aggressive share buyback is positive. In the past-12 months, shares have outperformed the industry it belongs to. However, weakness in the switching and routing is a headwind. Moreover, ongoing transition to subscription-based model will continue to hurt the top line. Further, weakness in the service provider business segment and intense competition from the likes of Huawei, Juniper and Arista Networks are other major concerns.”
CSCO has been the subject of a number of other reports. Wells Fargo & Co reaffirmed an outperform rating and set a $42.00 target price on shares of Cisco Systems in a report on Tuesday, November 14th. Vetr raised shares of Cisco Systems from a sell rating to a hold rating and set a $38.01 target price for the company in a report on Wednesday, December 27th. Royal Bank of Canada upped their target price on shares of Cisco Systems to $50.00 and gave the company an outperform rating in a report on Thursday, February 15th. Needham & Company LLC reaffirmed a hold rating on shares of Cisco Systems in a report on Tuesday, October 24th. Finally, Barclays upped their target price on shares of Cisco Systems from $34.00 to $37.00 and gave the company an overweight rating in a report on Thursday, November 16th. Ten analysts have rated the stock with a hold rating, twenty-six have given a buy rating and one has given a strong buy rating to the stock. The company presently has a consensus rating of Buy and a consensus target price of $43.66.
Cisco Systems (NASDAQ:CSCO) last announced its earnings results on Wednesday, February 14th. The network equipment provider reported $0.63 EPS for the quarter, beating the Zacks’ consensus estimate of $0.59 by $0.04. Cisco Systems had a negative net margin of 3.00% and a positive return on equity of 17.77%. The business had revenue of $11.89 billion during the quarter, compared to analysts’ expectations of $11.82 billion. During the same period in the prior year, the company earned $0.57 earnings per share. equities research analysts predict that Cisco Systems will post 2.32 EPS for the current year.
The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 25th. Investors of record on Thursday, April 5th will be paid a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 3.00%. This is a boost from Cisco Systems’s previous quarterly dividend of $0.29. The ex-dividend date of this dividend is Wednesday, April 4th. Cisco Systems’s dividend payout ratio (DPR) is presently -362.50%.
Cisco Systems declared that its board has authorized a stock buyback plan on Wednesday, February 14th that authorizes the company to buyback $25.00 billion in shares. This buyback authorization authorizes the network equipment provider to purchase shares of its stock through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its stock is undervalued.
In other Cisco Systems news, Director Arun Sarin sold 14,189 shares of the stock in a transaction on Tuesday, February 20th. The shares were sold at an average price of $44.10, for a total transaction of $625,734.90. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Roderick C. Mcgeary sold 15,230 shares of the stock in a transaction on Thursday, December 14th. The shares were sold at an average price of $38.00, for a total transaction of $578,740.00. Following the transaction, the director now owns 113,154 shares of the company’s stock, valued at approximately $4,299,852. The disclosure for this sale can be found here. Insiders have sold 104,440 shares of company stock valued at $4,086,782 over the last ninety days. 0.05% of the stock is currently owned by corporate insiders.
Hedge funds have recently added to or reduced their stakes in the business. Stonehearth Capital Management LLC bought a new stake in shares of Cisco Systems in the 4th quarter worth about $102,000. Tortoise Investment Management LLC lifted its holdings 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 acquiring an additional 878 shares during the last quarter. Mountain Capital Investment Advisors Inc bought a new stake in shares of Cisco Systems in the 2nd quarter worth about $104,000. Keeler Thomas Management LLC bought a new stake in shares of Cisco Systems in the 4th quarter worth about $108,000. Finally, Manchester Capital Management LLC lifted its holdings in shares of Cisco Systems by 10.7% in the 2nd quarter. Manchester Capital Management LLC now owns 3,606 shares of the network equipment provider’s stock worth $113,000 after acquiring an additional 350 shares during the last quarter. Institutional investors and hedge funds own 75.06% of the company’s stock.
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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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