Cisco Systems Inc. (NASDAQ:CSCO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Monday.
According to Zacks, “Cisco Systems is the leading provider of IP-based networking and other products. The modest first-quarter results and the disappointing guidance will weigh on the stock price in the near term. Intensifying competition from several smaller players, slowing order growth from service providers and challenges in the emerging markets are the primary headwinds. Nonetheless, we believe Cisco’s expanding footprint in the rapidly growing security and data center market are promising. Moreover, partnerships with the likes of Pure Storage, salesforce.com and IBM will help Cisco to gain signficant traction in the data center, cloud and Internet of Things (IoT) market in the long haul. Further, continued share buyback and dividend hikes are positive.”
A number of other analysts have also weighed in on the stock. FBN Securities set a $35.00 target price on shares of Cisco Systems and gave the stock a “buy” rating in a report on Saturday, November 19th. Stifel Nicolaus started coverage on shares of Cisco Systems in a report on Friday, November 18th. They issued a “hold” rating and a $34.00 price objective for the company. Deutsche Bank AG set a $37.00 price objective on shares of Cisco Systems and gave the stock a “buy” rating in a report on Thursday, November 17th. Oppenheimer Holdings Inc. restated a “buy” rating and issued a $34.00 price objective on shares of Cisco Systems in a report on Thursday, November 17th. Finally, JMP Securities restated a “hold” rating on shares of Cisco Systems in a report on Thursday, November 17th. Two analysts have rated the stock with a sell rating, thirteen have issued a hold rating, twenty-one have assigned a buy rating and one has given a strong buy rating to the stock. Cisco Systems has a consensus rating of “Buy” and an average price target of $32.73.
Shares of Cisco Systems (NASDAQ:CSCO) traded down 0.63% during mid-day trading on Monday, reaching $29.90. The company’s stock had a trading volume of 13,483,142 shares. The company has a market cap of $150.31 billion, a P/E ratio of 14.31 and a beta of 1.42. The company has a 50-day moving average of $30.59 and a 200-day moving average of $30.09. Cisco Systems has a 12 month low of $22.46 and a 12 month high of $31.95.
Cisco Systems (NASDAQ:CSCO) last posted its earnings results on Wednesday, November 16th. The network equipment provider reported $0.61 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.59 by $0.02. The company earned $12.35 billion during the quarter, compared to analyst estimates of $12.34 billion. Cisco Systems had a net margin of 21.73% and a return on equity of 17.50%. Cisco Systems’s revenue for the quarter was down 2.6% on a year-over-year basis. During the same period in the prior year, the business posted $0.59 earnings per share. Equities research analysts forecast that Cisco Systems will post $2.37 earnings per share for the current fiscal year.
In other Cisco Systems news, SVP Mark D. Chandler sold 62,910 shares of the firm’s stock in a transaction on Friday, September 23rd. The shares were sold at an average price of $31.40, for a total value of $1,975,374.00. Following the completion of the transaction, the senior vice president now owns 286,628 shares of the company’s stock, valued at $9,000,119.20. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director John L. Hennessy sold 15,000 shares of the firm’s stock in a transaction on Wednesday, September 21st. The stock was sold at an average price of $31.25, for a total transaction of $468,750.00. Following the completion of the transaction, the director now directly owns 88,369 shares of the company’s stock, valued at approximately $2,761,531.25. The disclosure for this sale can be found here. Corporate insiders own 0.11% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the company. Silvercrest Asset Management Group LLC boosted its position in Cisco Systems by 2.6% in the first quarter. Silvercrest Asset Management Group LLC now owns 3,137,374 shares of the network equipment provider’s stock worth $89,321,000 after buying an additional 79,859 shares in the last quarter. Clark Capital Management Group Inc. boosted its position in Cisco Systems by 31.7% in the first quarter. Clark Capital Management Group Inc. now owns 473,572 shares of the network equipment provider’s stock worth $13,483,000 after buying an additional 114,092 shares in the last quarter. EFG Asset Management Americas Corp. bought a new position in Cisco Systems during the first quarter worth about $397,000. Envestnet Asset Management Inc. boosted its position in Cisco Systems by 3.0% in the first quarter. Envestnet Asset Management Inc. now owns 1,792,218 shares of the network equipment provider’s stock worth $51,024,000 after buying an additional 52,053 shares in the last quarter. Finally, Legal & General Group Plc boosted its position in Cisco Systems by 0.9% in the first quarter. Legal & General Group Plc now owns 22,258,293 shares of the network equipment provider’s stock worth $633,708,000 after buying an additional 195,434 shares in the last quarter. 74.29% of the stock is owned by institutional investors and hedge funds.
Cisco Systems Company Profile
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.