Zacks Investment Research cut shares of Cisco Systems, Inc. (NASDAQ:CSCO) from a hold rating to a sell rating in a report issued on Tuesday.

According to Zacks, “Cisco's expanding footprint in the rapidly growing security market presents significant growth opportunity. Further, the company’s focus on driving cost improvement, operational efficiencies and productivity will help in margin expansion. Additionally, partnerships with Telenor, Apple, IBM and Microsoft are positive in our view. Moreover, the recently updated ACI solution will boost expertise in the SDN market. On a year-to-date basis, the company has outperformed the industry it belongs to. However, top-line will continue suffer from intensifying competition, slowing order growth from service providers and challenges in the emerging markets. We continue to believe that the time-consuming transition to subscription-based business model will hurt top line growth at least in the near term.”

Several other equities analysts have also recently commented on CSCO. Drexel Hamilton reiterated a buy rating and set a $39.00 target price on shares of Cisco Systems in a research note on Sunday, June 25th. J P Morgan Chase & Co reiterated a neutral rating on shares of Cisco Systems in a research note on Monday, June 26th. Wells Fargo & Company reiterated an outperform rating and set a $37.50 target price on shares of Cisco Systems in a research note on Monday, June 26th. Credit Suisse Group reiterated an outperform rating and set a $40.00 target price on shares of Cisco Systems in a research note on Monday, June 26th. Finally, Oppenheimer Holdings, Inc. reiterated an outperform rating and set a $36.00 target price on shares of Cisco Systems in a research note on Monday, June 26th. One research analyst has rated the stock with a sell rating, fourteen have given a hold rating and twenty-one have given a buy rating to the company. The stock has an average rating of Buy and a consensus price target of $35.30.

Shares of Cisco Systems (NASDAQ:CSCO) traded up 1.48% during mid-day trading on Tuesday, reaching $34.25. 24,361,352 shares of the company were exchanged. Cisco Systems has a 12 month low of $29.12 and a 12 month high of $34.60. The stock has a 50 day moving average price of $33.05 and a 200-day moving average price of $32.35. The stock has a market capitalization of $169.60 billion, a P/E ratio of 18.03 and a beta of 1.21.

Cisco Systems (NASDAQ:CSCO) last released its earnings results on Wednesday, August 16th. The network equipment provider reported $0.61 EPS for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.61. The company had revenue of $12.13 billion during the quarter, compared to analysts’ expectations of $12.07 billion. Cisco Systems had a return on equity of 16.91% and a net margin of 20.02%. The business’s revenue was down 4.0% on a year-over-year basis. During the same period in the prior year, the business posted $0.63 EPS. Analysts predict that Cisco Systems will post $2.43 earnings per share for the current year.

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The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 25th. Stockholders of record on Thursday, October 5th will be issued a dividend of $0.29 per share. The ex-dividend date is Wednesday, October 4th. This represents a $1.16 annualized dividend and a dividend yield of 3.39%. Cisco Systems’s dividend payout ratio is 60.73%.

In other news, CEO Charles Robbins sold 121,390 shares of Cisco Systems stock in a transaction dated Wednesday, September 13th. The stock was sold at an average price of $32.06, for a total transaction of $3,891,763.40. Following the completion of the sale, the chief executive officer now directly owns 552,694 shares in the company, valued at approximately $17,719,369.64. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider John T. Chambers sold 250,000 shares of Cisco Systems stock in a transaction dated Wednesday, August 23rd. The shares were sold at an average price of $31.14, for a total value of $7,785,000.00. Following the sale, the insider now owns 729,305 shares of the company’s stock, valued at $22,710,557.70. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 485,138 shares of company stock valued at $15,347,574. 0.11% of the stock is owned by corporate insiders.

Several institutional investors have recently made changes to their positions in the company. Washington Trust Bank raised its stake in shares of Cisco Systems by 2.5% in the 2nd quarter. Washington Trust Bank now owns 113,153 shares of the network equipment provider’s stock valued at $3,542,000 after acquiring an additional 2,726 shares in the last quarter. Holderness Investments Co. raised its stake in shares of Cisco Systems by 12.1% in the 1st quarter. Holderness Investments Co. now owns 66,740 shares of the network equipment provider’s stock valued at $2,256,000 after acquiring an additional 7,186 shares in the last quarter. Pioneer Investment Management Inc. raised its stake in shares of Cisco Systems by 5.2% in the 1st quarter. Pioneer Investment Management Inc. now owns 8,258,748 shares of the network equipment provider’s stock valued at $279,146,000 after acquiring an additional 408,875 shares in the last quarter. Congress Asset Management Co. MA raised its stake in shares of Cisco Systems by 4.1% in the 1st quarter. Congress Asset Management Co. MA now owns 147,410 shares of the network equipment provider’s stock valued at $4,982,000 after acquiring an additional 5,796 shares in the last quarter. Finally, Investment House LLC raised its stake in shares of Cisco Systems by 7.5% in the 2nd quarter. Investment House LLC now owns 85,400 shares of the network equipment provider’s stock valued at $2,673,000 after acquiring an additional 5,975 shares in the last quarter. Institutional investors and hedge funds own 75.32% of the company’s stock.

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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