Cisco Systems (NASDAQ:CSCO) Shares Down 2.9% – Here’s Why

Cisco Systems, Inc. (NASDAQ:CSCO)’s share price traded down 2.9% during mid-day trading on Wednesday . The stock traded as low as $91.00 and last traded at $91.5440. 26,784,885 shares traded hands during trading, an increase of 21% from the average session volume of 22,220,326 shares. The stock had previously closed at $94.30.

More Cisco Systems News

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

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the company. HSBC upped their price target on Cisco Systems from $74.00 to $77.00 and gave the stock a “hold” rating in a report on Friday, February 13th. Evercore upped their price target on Cisco Systems from $100.00 to $110.00 and gave the stock an “outperform” rating in a report on Monday. Wall Street Zen downgraded Cisco Systems from a “buy” rating to a “hold” rating in a report on Saturday, March 14th. Rosenblatt Securities reiterated a “buy” rating and set a $100.00 price target on shares of Cisco Systems in a report on Thursday, February 12th. Finally, BNP Paribas Exane upped their price target on Cisco Systems from $86.00 to $87.00 and gave the stock an “outperform” rating in a report on Thursday, February 12th. Three research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, Cisco Systems has an average rating of “Moderate Buy” and an average target price of $90.29.

Cisco Systems Price Performance

The stock has a market cap of $381.44 billion, a P/E ratio of 33.88, a P/E/G ratio of 3.46 and a beta of 0.92. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.85 and a current ratio of 0.96. The business has a 50 day simple moving average of $82.32 and a 200-day simple moving average of $78.56.

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

Cisco Systems Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 22nd. Shareholders of record on Thursday, April 2nd were paid a $0.42 dividend. This is a boost from Cisco Systems’s previous quarterly dividend of $0.41. The ex-dividend date was Thursday, April 2nd. This represents a $1.68 dividend on an annualized basis and a yield of 1.7%. Cisco Systems’s dividend payout ratio is currently 58.95%.

Insider Activity at Cisco Systems

In other news, insider Jeetendra I. Patel sold 11,248 shares of the stock in a transaction on Friday, February 13th. The stock was sold at an average price of $76.00, for a total transaction of $854,848.00. Following the completion of the transaction, the insider owned 262,776 shares in the company, valued at approximately $19,970,976. This represents a 4.10% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Maria Victoria Wong sold 2,179 shares of the stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $77.74, for a total value of $169,395.46. Following the transaction, the senior vice president owned 28,807 shares of the company’s stock, valued at $2,239,456.18. The trade was a 7.03% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 46,431 shares of company stock worth $3,574,820 in the last three months. Corporate insiders own 0.01% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Mirae Asset Global Investments Co. Ltd. raised its holdings in shares of Cisco Systems by 6.9% in the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 3,189,645 shares of the network equipment provider’s stock valued at $218,236,000 after acquiring an additional 205,043 shares in the last quarter. Jones Financial Companies Lllp increased its position in shares of Cisco Systems by 8.9% during the 3rd quarter. Jones Financial Companies Lllp now owns 686,469 shares of the network equipment provider’s stock valued at $46,165,000 after purchasing an additional 56,057 shares during the last quarter. Rockland Trust Co. increased its position in shares of Cisco Systems by 213.8% during the 3rd quarter. Rockland Trust Co. now owns 20,497 shares of the network equipment provider’s stock valued at $1,402,000 after purchasing an additional 13,966 shares during the last quarter. Thrivent Financial for Lutherans increased its position in shares of Cisco Systems by 40.0% during the 3rd quarter. Thrivent Financial for Lutherans now owns 3,490,482 shares of the network equipment provider’s stock valued at $238,818,000 after purchasing an additional 997,738 shares during the last quarter. Finally, Kingswood Wealth Advisors LLC increased its position in shares of Cisco Systems by 39.3% during the 3rd quarter. Kingswood Wealth Advisors LLC now owns 48,723 shares of the network equipment provider’s stock valued at $3,334,000 after purchasing an additional 13,748 shares during the last quarter. Institutional investors own 73.33% of the company’s stock.

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.