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 brokerage currently has a $34.00 price objective on the network equipment provider’s stock. Zacks Investment Research’s target price would indicate a potential upside of 12.51% from the stock’s current price.
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.”
A number of other analysts have also recently commented on CSCO. Piper Jaffray Cos. upped their target price on shares of Cisco Systems from $30.00 to $34.00 and gave the company an “overweight” rating in a report on Thursday, August 18th. Wunderlich reaffirmed a “hold” rating and set a $27.00 target price on shares of Cisco Systems in a report on Thursday, August 18th. Needham & Company LLC reissued a “hold” rating on shares of Cisco Systems in a research note on Thursday, August 18th. Vetr cut shares of Cisco Systems from a “buy” rating to a “hold” rating and set a $31.55 price objective for the company. in a research note on Thursday, August 18th. Finally, Goldman Sachs Group Inc. reissued a “neutral” rating and issued a $32.00 price objective on shares of Cisco Systems in a research note on Thursday, August 18th. One research analyst has rated the stock with a sell rating, twelve have given a hold rating, twenty-four have given a buy rating and one has given a strong buy rating to the stock. Cisco Systems presently has an average rating of “Buy” and a consensus price target of $32.56.
Shares of Cisco Systems (NASDAQ:CSCO) opened at 30.22 on Tuesday. Cisco Systems has a 12-month low of $22.46 and a 12-month high of $31.95. The company has a market capitalization of $151.53 billion, a P/E ratio of 14.32 and a beta of 1.48. The stock’s 50 day moving average is $31.26 and its 200-day moving average is $29.54.
Cisco Systems (NASDAQ:CSCO) last announced its earnings results on Wednesday, August 17th. The network equipment provider reported $0.63 EPS for the quarter, beating the Zacks’ consensus estimate of $0.60 by $0.03. Cisco Systems had a net margin of 21.81% and a return on equity of 17.64%. The business earned $12.60 billion during the quarter, compared to analysts’ expectations of $12.57 billion. During the same period in the prior year, the company earned $0.59 earnings per share. The firm’s revenue was down 1.6% on a year-over-year basis. Analysts anticipate that Cisco Systems will post $2.43 earnings per share for the current year.
The firm also recently announced 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 payout ratio is 49.06%.
In other news, Director John L. Hennessy sold 15,000 shares of the business’s stock in a transaction dated Wednesday, September 21st. The shares were sold at an average price of $31.25, for a total transaction of $468,750.00. Following the transaction, the director now owns 88,369 shares of the company’s stock, valued at approximately $2,761,531.25. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, SVP Prat Bhatt sold 25,706 shares of the business’s stock in a transaction dated Tuesday, September 13th. The shares were sold at an average price of $31.02, for a total transaction of $797,400.12. Following the transaction, the senior vice president now directly owns 133,113 shares in the company, valued at approximately $4,129,165.26. The disclosure for this sale can be found here. Insiders own 0.13% of the company’s stock.
Several hedge funds and other institutional investors have recently made changes to their positions in CSCO. Bellecapital International Ltd. boosted its position in shares of Cisco Systems by 3.6% in the first quarter. Bellecapital International Ltd. now owns 195,061 shares of the network equipment provider’s stock valued at $5,298,000 after buying an additional 6,820 shares during the last quarter. Douglas Lane & Associates LLC purchased a new position in shares of Cisco Systems during the first quarter valued at $65,154,000. Duncker Streett & Co. Inc. boosted its position in shares of Cisco Systems by 0.8% in the first quarter. Duncker Streett & Co. Inc. now owns 46,267 shares of the network equipment provider’s stock valued at $1,317,000 after buying an additional 371 shares during the last quarter. North Star Investment Management Corp. boosted its position in shares of Cisco Systems by 1.2% in the first quarter. North Star Investment Management Corp. now owns 34,524 shares of the network equipment provider’s stock valued at $983,000 after buying an additional 400 shares during the last quarter. Finally, Wilbanks Smith & Thomas Asset Management LLC boosted its position in shares of Cisco Systems by 0.6% in the first quarter. Wilbanks Smith & Thomas Asset Management LLC now owns 33,298 shares of the network equipment provider’s stock valued at $948,000 after buying an additional 211 shares during the last quarter. 75.06% of the stock is currently owned by hedge funds and other institutional investors.
About Cisco Systems
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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