Investors Buy Shares of Cisco Systems (CSCO) on Weakness


Investors purchased shares of Cisco Systems (NASDAQ:CSCO) on weakness during trading on Tuesday. $236.68 million flowed into the stock on the tick-up and $133.40 million flowed out of the stock on the tick-down, for a money net flow of $103.28 million into the stock. Of all equities tracked, Cisco Systems had the 9th highest net in-flow for the day. Cisco Systems traded down ($0.22) for the day and closed at $45.48


CSCO has been the subject of a number of research reports. Vetr cut shares of Cisco Systems from a “buy” rating to a “hold” rating and set a $46.32 price objective for the company. in a report on Wednesday, April 18th. Citigroup lifted their price objective on shares of Cisco Systems from $46.00 to $52.00 and gave the company a “buy” rating in a report on Friday, March 16th. BMO Capital Markets lifted their price objective on shares of Cisco Systems from $36.00 to $43.00 and gave the company a “market perform” rating in a report on Thursday, February 15th. KeyCorp lifted their price objective on shares of Cisco Systems from $43.00 to $49.00 and gave the company an “overweight” rating in a report on Thursday, February 15th. Finally, JPMorgan Chase initiated coverage on shares of Cisco Systems in a report on Thursday, May 3rd. They issued an “overweight” rating and a $57.00 price objective for the company. Ten investment analysts have rated the stock with a hold rating, twenty-six have given a buy rating and two have given a strong buy rating to the company. The company presently has an average rating of “Buy” and a consensus target price of $45.20.


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The stock has a market capitalization of $221.27 billion, a price-to-earnings ratio of 21.15, a P/E/G ratio of 3.28 and a beta of 1.14. The company has a debt-to-equity ratio of 0.49, a quick ratio of 2.38 and a current ratio of 2.43.

Cisco Systems (NASDAQ:CSCO) last issued its quarterly earnings data on Wednesday, February 14th. The network equipment provider reported $0.63 earnings per share for the quarter, topping the consensus estimate of $0.59 by $0.04. The business had revenue of $11.89 billion during the quarter, compared to the consensus estimate of $11.82 billion. Cisco Systems had a negative net margin of 3.00% and a positive return on equity of 17.77%. During the same quarter in the previous year, the firm earned $0.57 EPS. analysts forecast that Cisco Systems will post 2.33 earnings per share for the current year.


The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 25th. Stockholders of record on Thursday, April 5th were given a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 2.90%. The ex-dividend date of this dividend was Wednesday, April 4th. This is an increase from Cisco Systems’s previous quarterly dividend of $0.29. Cisco Systems’s payout ratio is currently 61.40%.

Cisco Systems announced that its Board of Directors has authorized a stock repurchase program on Wednesday, February 14th that authorizes the company to buyback $25.00 billion in shares. This buyback authorization authorizes the network equipment provider to buy shares of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s management believes its shares are undervalued.


In other news, Director Arun Sarin sold 14,189 shares of the business’s stock in a transaction that occurred on Tuesday, February 20th. The shares were sold at an average price of $44.10, for a total transaction of $625,734.90. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director M Michele Burns sold 12,126 shares of the business’s stock in a transaction that occurred on Monday, February 26th. The stock was sold at an average price of $45.37, for a total transaction of $550,156.62. Following the sale, the director now owns 74,479 shares of the company’s stock, valued at approximately $3,379,112.23. The disclosure for this sale can be found here. Insiders have sold a total of 46,986 shares of company stock valued at $2,116,422 in the last 90 days. Insiders own 0.05% of the company’s stock.


Large investors have recently modified their holdings of the company. IFG Advisory LLC purchased a new stake in Cisco Systems in the 4th quarter valued at $2,375,000. Stonehearth Capital Management LLC purchased a new stake in Cisco Systems in the 4th quarter valued at $102,000. Keeler Thomas Management LLC purchased a new stake in Cisco Systems in the 4th quarter valued at $108,000. Goodman Financial Corp purchased a new stake in Cisco Systems in the 4th quarter valued at $115,000. Finally, Certified Advisory Corp purchased a new stake in Cisco Systems in the 4th quarter valued at $116,000. Institutional investors and hedge funds own 77.40% of the company’s stock.

About Cisco Systems

Cisco Systems, Inc designs, manufactures, and sells Internet Protocol (IP) based networking and other products related to the communications and information technology industry worldwide. The company offers switching products, including fixed-configuration and modular switches, and storage products that provide connectivity to end users, workstations, IP phones, wireless access points, and servers; and next-generation network routing products that interconnect public and private wireline and mobile networks for mobile, data, voice, and video applications.

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