Cisco Systems (NASDAQ:CSCO) Trading Up 4.8% – Here’s What Happened

Cisco Systems, Inc. (NASDAQ:CSCO)’s stock price was up 4.8% during mid-day trading on Friday . The company traded as high as $97.02 and last traded at $96.57. Approximately 24,501,216 shares changed hands during mid-day trading, an increase of 10% from the average daily volume of 22,190,219 shares. The stock had previously closed at $92.16.

Cisco Systems News Summary

Here are the key news stories impacting Cisco Systems this week:

• Positive Sentiment: Cisco is drawing heavier investor attention ahead of earnings, which can support trading volume and sentiment as traders position for a potential report-driven move. Cisco Systems, Inc. (CSCO) Is a Trending Stock: Facts to Know Before Betting on It
• Positive Sentiment: Analysts are continuing to frame Cisco’s investment case around its next quarterly results, with some views slightly improving fair value estimates, suggesting lingering confidence in the company’s fundamentals. How The Cisco Systems (CSCO) Investment Story Is Shifting As Analyst Views Diverge
• Neutral Sentiment: Cisco is set to participate in multiple upcoming financial-community events in May and June, which keeps management visible to investors but does not directly change the fundamentals. Cisco to Participate in May & June Events with the Financial Community
• Neutral Sentiment: Wall Street estimates for Cisco’s upcoming quarter are being closely dissected, but this is mainly an expectations check ahead of earnings rather than a new business catalyst. Unlocking Q3 Potential of Cisco (CSCO): Exploring Wall Street Estimates for Key Metrics
• Negative Sentiment: Recent coverage noted Cisco shares underperformed the broader market and dropped in the latest session, showing some near-term pressure before the company’s next earnings catalyst. Cisco Systems (CSCO) Stock Drops Despite Market Gains: Important Facts to Note

Analyst Ratings Changes

A number of research analysts have recently issued reports on CSCO shares. Truist Financial started coverage on shares of Cisco Systems in a research note on Tuesday, March 31st. They issued a “buy” rating and a $94.00 target price for the company. JPMorgan Chase & Co. lifted their target price on shares of Cisco Systems from $95.00 to $96.00 and gave the company an “overweight” rating in a research note on Thursday, April 16th. Erste Group Bank cut shares of Cisco Systems from a “buy” rating to a “hold” rating in a research note on Wednesday, February 18th. Citigroup lifted their target price on shares of Cisco Systems from $85.00 to $90.00 and gave the company a “buy” rating in a research note on Thursday, February 12th. Finally, CICC Research lifted their target price on shares of Cisco Systems from $84.00 to $96.00 and gave the company an “outperform” rating in a research note on Friday, February 13th. Three research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and eight have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $90.29.

Cisco Systems Price Performance

The company has a debt-to-equity ratio of 0.45, a current ratio of 0.96 and a quick ratio of 0.85. The company’s 50 day moving average price is $82.32 and its 200 day moving average price is $78.56. The firm has a market capitalization of $381.44 billion, a P/E ratio of 33.88, a PEG ratio of 3.62 and a beta of 0.92.

Cisco Systems (NASDAQ:CSCO) last released its quarterly earnings results on Wednesday, February 11th. The network equipment provider reported $1.04 EPS for the quarter, beating the consensus estimate of $1.02 by $0.02. Cisco Systems had a net margin of 19.22% and a return on equity of 27.88%. The business had revenue of $15.35 billion for the quarter, compared to analysts’ expectations of $15.11 billion. During the same period in the prior year, the firm earned $0.94 earnings per share. Cisco Systems’s revenue was up 9.7% compared to the same quarter last year. As a group, sell-side analysts anticipate that Cisco Systems, Inc. will post 3.42 EPS for the current fiscal year.

Cisco Systems Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 22nd. Stockholders of record on Thursday, April 2nd were paid a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a dividend yield of 1.7%. This is an increase from Cisco Systems’s previous quarterly dividend of $0.41. The ex-dividend date of this dividend was Thursday, April 2nd. Cisco Systems’s payout ratio is currently 58.95%.

Insider Buying and Selling at Cisco Systems

In other news, CEO Charles Robbins sold 19,545 shares of the stock in a transaction that occurred on Friday, February 13th. The shares were sold at an average price of $76.00, for a total transaction of $1,485,420.00. Following the sale, the chief executive officer directly owned 671,095 shares of the company’s stock, valued at $51,003,220. This represents a 2.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Oliver Tuszik sold 3,132 shares of the stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $79.74, for a total transaction of $249,745.68. Following the sale, the executive vice president directly owned 188,613 shares in the company, valued at $15,040,000.62. This trade represents a 1.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 46,431 shares of company stock valued at $3,574,820 over the last three months. Insiders own 0.01% of the company’s stock.

Hedge Funds Weigh In On Cisco Systems

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Signature Resources Capital Management LLC boosted its stake in Cisco Systems by 2.3% in the first quarter. Signature Resources Capital Management LLC now owns 5,061 shares of the network equipment provider’s stock valued at $393,000 after acquiring an additional 116 shares during the last quarter. Smithfield Trust Co boosted its stake in Cisco Systems by 0.3% in the fourth quarter. Smithfield Trust Co now owns 33,666 shares of the network equipment provider’s stock valued at $2,596,000 after acquiring an additional 117 shares during the last quarter. Pacific Sage Partners LLC boosted its stake in Cisco Systems by 0.7% in the first quarter. Pacific Sage Partners LLC now owns 16,185 shares of the network equipment provider’s stock valued at $1,256,000 after acquiring an additional 118 shares during the last quarter. Capstone Wealth Management Group LLC boosted its stake in Cisco Systems by 3.2% in the fourth quarter. Capstone Wealth Management Group LLC now owns 3,818 shares of the network equipment provider’s stock valued at $294,000 after acquiring an additional 120 shares during the last quarter. Finally, Hilton Head Capital Partners LLC boosted its stake in Cisco Systems by 0.9% in the first quarter. Hilton Head Capital Partners LLC now owns 13,488 shares of the network equipment provider’s stock valued at $1,047,000 after acquiring an additional 120 shares during the last quarter. 73.33% of the stock is owned by institutional investors.

About Cisco Systems

Cisco Systems, Inc is a global technology company that designs, manufactures and sells networking hardware, software and telecommunications equipment. Its core business focuses on enabling enterprise and service-provider networks through products such as routers, switches, network security appliances and wireless systems. Over time Cisco has broadened its portfolio to emphasize software-defined networking, cybersecurity, cloud infrastructure and edge computing solutions that help organizations build and manage modern IT environments.

In addition to hardware, Cisco offers a growing range of software platforms and subscription services for network management, security, analytics and collaboration.