BidaskClub Downgrades Cisco Systems (CSCO) to Buy

BidaskClub lowered shares of Cisco Systems (NASDAQ:CSCO) from a strong-buy rating to a buy rating in a report released on Tuesday, BidAskClub reports.

Other analysts have also issued research reports about the company. Goldman Sachs Group lowered Cisco Systems from a conviction-buy rating to a buy rating and upped their target price for the stock from $58.00 to $62.00 in a research note on Tuesday, April 16th. Wells Fargo & Co reissued an outperform rating and set a $57.00 price objective (up previously from $52.00) on shares of Cisco Systems in a research note on Wednesday, February 13th. Argus reissued a buy rating and set a $55.00 price objective on shares of Cisco Systems in a research note on Tuesday, January 15th. Credit Suisse Group increased their price objective on Cisco Systems from $44.00 to $47.00 and gave the company a neutral rating in a research note on Thursday, February 14th. Finally, MKM Partners increased their price objective on Cisco Systems to $54.00 and gave the company a neutral rating in a research note on Thursday, February 14th. Six research analysts have rated the stock with a hold rating and twenty have issued a buy rating to the stock. The company currently has a consensus rating of Buy and a consensus target price of $54.35.

CSCO stock opened at $53.25 on Tuesday. The company has a current ratio of 1.80, a quick ratio of 1.74 and a debt-to-equity ratio of 0.39. The company has a market capitalization of $257.50 billion, a P/E ratio of 22.76, a P/E/G ratio of 2.86 and a beta of 1.21. Cisco Systems has a 1-year low of $40.25 and a 1-year high of $57.53.

Cisco Systems (NASDAQ:CSCO) last posted its quarterly earnings data on Wednesday, February 13th. The network equipment provider reported $0.73 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.72 by $0.01. The company had revenue of $12.45 billion for the quarter, compared to analysts’ expectations of $12.43 billion. Cisco Systems had a net margin of 25.31% and a return on equity of 27.58%. Cisco Systems’s revenue for the quarter was up 4.7% compared to the same quarter last year. During the same period in the prior year, the business earned $0.63 earnings per share. As a group, sell-side analysts predict that Cisco Systems will post 2.75 earnings per share for the current year.

Cisco Systems announced that its board has approved a stock repurchase program on Wednesday, February 13th that allows the company to repurchase $15.00 billion in shares. This repurchase authorization allows the network equipment provider to purchase up to 6.5% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board believes its shares are undervalued.

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 24th. Investors of record on Friday, April 5th were issued a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 2.63%. This is an increase from Cisco Systems’s previous quarterly dividend of $0.33. The ex-dividend date was Thursday, April 4th. Cisco Systems’s dividend payout ratio (DPR) is presently 59.83%.

In related news, CFO Kelly A. Kramer sold 70,000 shares of Cisco Systems stock in a transaction dated Thursday, February 28th. The stock was sold at an average price of $51.70, for a total value of $3,619,000.00. Following the completion of the sale, the chief financial officer now directly owns 420,696 shares in the company, valued at approximately $21,749,983.20. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Roderick C. Mcgeary sold 15,000 shares of Cisco Systems stock in a transaction dated Tuesday, February 19th. The stock was sold at an average price of $49.66, for a total value of $744,900.00. Following the completion of the sale, the director now owns 102,898 shares of the company’s stock, valued at $5,109,914.68. The disclosure for this sale can be found here. Insiders sold a total of 115,000 shares of company stock valued at $5,926,000 over the last quarter. 0.03% of the stock is owned by corporate insiders.

A number of large investors have recently made changes to their positions in the business. IFM Investors Pty Ltd raised its stake in Cisco Systems by 13.8% during the 3rd quarter. IFM Investors Pty Ltd now owns 248,311 shares of the network equipment provider’s stock valued at $12,080,000 after purchasing an additional 30,141 shares during the period. Truvestments Capital LLC raised its stake in Cisco Systems by 29.9% during the 3rd quarter. Truvestments Capital LLC now owns 33,069 shares of the network equipment provider’s stock valued at $1,609,000 after purchasing an additional 7,602 shares during the period. UMB Bank N A MO raised its stake in Cisco Systems by 5.5% during the 3rd quarter. UMB Bank N A MO now owns 157,094 shares of the network equipment provider’s stock valued at $7,643,000 after purchasing an additional 8,223 shares during the period. Stewart & Patten Co. LLC raised its stake in Cisco Systems by 41.6% during the 3rd quarter. Stewart & Patten Co. LLC now owns 134,153 shares of the network equipment provider’s stock valued at $6,527,000 after purchasing an additional 39,400 shares during the period. Finally, Regent Investment Management LLC increased its stake in Cisco Systems by 45.5% in the 3rd quarter. Regent Investment Management LLC now owns 76,993 shares of the network equipment provider’s stock worth $3,746,000 after acquiring an additional 24,080 shares during the last quarter. 69.16% of the stock is currently owned by institutional investors and hedge funds.

Cisco Systems Company Profile

Cisco Systems, Inc designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry worldwide. The company offers switching products; routing products that interconnect public and private wireline and mobile networks; data center products; and wireless access points for use in voice, video, and data applications.

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Analyst Recommendations for Cisco Systems (NASDAQ:CSCO)

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