Cisco Systems (CSCO) Downgraded by Zacks Investment Research
Zacks Investment Research cut shares of Cisco Systems (NASDAQ:CSCO) from a buy rating to a hold rating in a research note published on Thursday morning.
According to Zacks, “Shares of the IP-based networking company, Cisco have outperformed the industry over the past one year. We believe that the company’s expanding footprint in the rapidly growing security market presents significant growth opportunity. Additionally, partnerships with Telenor, Apple, IBM and Microsoft are positive in our view. Additionally, the company’s Application Centric Infrastructure (ACI) solution is currently used by more than 4K customers. The ACI solution was recently enhanced with new features that have aided growth. Further, the planned acquisition of Broadsoft will boost company's recurring revenue base. Moreover, the company's collaboration with Google Cloud to offer hybrid cloud solution is a key catalyst. However, intense competition from peers and challenges in the emerging markets reamins a headwind.”
A number of other equities analysts have also recently issued reports on CSCO. BMO Capital Markets restated a hold rating and issued a $32.00 target price on shares of Cisco Systems in a report on Thursday, September 28th. Vetr cut Cisco Systems from a buy rating to a hold rating and set a $34.13 target price on the stock. in a report on Monday, September 25th. Piper Jaffray Companies restated an overweight rating and issued a $44.00 target price on shares of Cisco Systems in a report on Wednesday, January 10th. Credit Suisse Group restated a hold rating and issued a $35.00 target price on shares of Cisco Systems in a report on Friday, October 6th. Finally, Needham & Company LLC reiterated a hold rating on shares of Cisco Systems in a report on Tuesday, October 24th. Thirteen research analysts have rated the stock with a hold rating, twenty-two have issued a buy rating and one has assigned a strong buy rating to the stock. Cisco Systems currently has a consensus rating of Buy and an average price target of $38.80.
Cisco Systems (NASDAQ:CSCO) last issued its earnings results on Wednesday, November 15th. The network equipment provider reported $0.61 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.60 by $0.01. The business had revenue of $12.14 billion for the quarter, compared to analysts’ expectations of $12.11 billion. Cisco Systems had a return on equity of 16.64% and a net margin of 20.26%. The company’s quarterly revenue was down 1.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.61 EPS. analysts anticipate that Cisco Systems will post 2.21 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Wednesday, January 24th. Shareholders of record on Friday, January 5th will be paid a $0.29 dividend. The ex-dividend date is Thursday, January 4th. This represents a $1.16 dividend on an annualized basis and a yield of 2.81%. Cisco Systems’s dividend payout ratio (DPR) is currently 60.10%.
In other Cisco Systems news, SVP Rebecca Jacoby sold 75,021 shares of the business’s stock in a transaction dated Tuesday, December 19th. The stock was sold at an average price of $38.42, for a total value of $2,882,306.82. Following the transaction, the senior vice president now owns 257,476 shares in the company, valued at $9,892,227.92. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Karen Walker sold 5,786 shares of the business’s stock in a transaction dated Wednesday, November 22nd. The stock was sold at an average price of $36.49, for a total value of $211,131.14. Following the completion of the sale, the senior vice president now directly owns 176,418 shares of the company’s stock, valued at approximately $6,437,492.82. The disclosure for this sale can be found here. Insiders sold 348,643 shares of company stock worth $12,892,271 in the last 90 days. Corporate insiders own 0.05% of the company’s stock.
Several large investors have recently made changes to their positions in CSCO. Barnett & Company Inc. lifted its position in shares of Cisco Systems by 1,511.5% in the second quarter. Barnett & Company Inc. now owns 3,223 shares of the network equipment provider’s stock worth $101,000 after buying an additional 3,023 shares during the last quarter. Stonehearth Capital Management LLC acquired a new stake in shares of Cisco Systems in the fourth quarter worth about $102,000. Tortoise Investment Management LLC lifted its position in shares of Cisco Systems by 36.1% in the second quarter. Tortoise Investment Management LLC now owns 3,309 shares of the network equipment provider’s stock worth $104,000 after buying an additional 878 shares during the last quarter. Mountain Capital Investment Advisors Inc acquired a new stake in shares of Cisco Systems in the second quarter worth about $104,000. Finally, Grove Bank & Trust lifted its position in shares of Cisco Systems by 141.3% in the second quarter. Grove Bank & Trust now owns 3,620 shares of the network equipment provider’s stock worth $113,000 after buying an additional 2,120 shares during the last quarter. 75.60% of the stock is owned by institutional investors.
Cisco Systems Company Profile
Cisco Systems, Inc designs and sells a range of products, provides services and delivers integrated solutions to develop and connect networks around the world. The Company operates through three geographic segments: Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific, Japan and China (APJC).
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