Zacks Investment Research upgraded shares of Cisco Systems (NASDAQ:CSCO) from a hold rating to a buy rating in a research report sent to investors on Tuesday morning, Zacks.com reports. The brokerage currently has $63.00 price objective on the network equipment provider’s stock.
According to Zacks, “Cisco is an IP-based networking company. Strength witnessed in the company’s Security and Applications segments are key catalysts. Order strength and improving traction of the subscription-based model were other tailwinds. Strong contribution from security, Infrastructure Platforms and applications is a positive. Order strength and improving traction of the subscription-based model are other tailwinds. Strengthening collaboration portfolio which now includes Webex Teams and Accompany bodes well. Further, buyout of Duo Security and Luxtera should help the company expand its IT and data center clientele. However, weakness in switching and routing is a headwind. Arista’s intention of manufacturing switches that connect campus networks is likely to hurt Cisco as it holds a dominant position in that market.”
Several other analysts also recently commented on the stock. Wells Fargo & Co reaffirmed an outperform rating and set a $57.00 price objective (up previously from $52.00) on shares of Cisco Systems in a research report on Wednesday, February 13th. Oppenheimer raised their price objective on shares of Cisco Systems from $52.00 to $60.00 and gave the stock an outperform rating in a research report on Friday, April 26th. KeyCorp raised their price objective on shares of Cisco Systems from $53.00 to $55.00 and gave the stock an overweight rating in a research report on Thursday, February 14th. BidaskClub downgraded shares of Cisco Systems from a strong-buy rating to a buy rating in a research report on Tuesday, May 7th. Finally, Robert W. Baird reaffirmed a buy rating and set a $53.00 price objective on shares of Cisco Systems in a research report on Tuesday, February 12th. Five equities research analysts have rated the stock with a hold rating and twenty-one have given a buy rating to the company. The stock currently has a consensus rating of Buy and a consensus target price of $55.87.
Cisco Systems (NASDAQ:CSCO) last released its earnings results on Wednesday, May 15th. The network equipment provider reported $0.78 earnings per share for the quarter, beating analysts’ consensus estimates of $0.77 by $0.01. The business had revenue of $12.96 billion during the quarter, compared to the consensus estimate of $12.89 billion. Cisco Systems had a net margin of 25.76% and a return on equity of 29.88%. The company’s revenue for the quarter was up 4.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.66 EPS. On average, sell-side analysts expect that Cisco Systems will post 2.76 EPS for the current year.
Cisco Systems declared that its Board of Directors has initiated a share repurchase program on Wednesday, February 13th that permits the company to repurchase $15.00 billion in outstanding shares. This repurchase authorization permits the network equipment provider to purchase up to 6.5% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its shares are undervalued.
In related news, EVP David Goeckeler sold 30,000 shares of the stock in a transaction on Tuesday, March 12th. The stock was sold at an average price of $52.07, for a total value of $1,562,100.00. Following the transaction, the executive vice president now directly owns 419,439 shares in the company, valued at approximately $21,840,188.73. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Kelly A. Kramer sold 70,000 shares of the stock in a transaction on 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 transaction, the chief financial officer now owns 420,696 shares in the company, valued at $21,749,983.20. The disclosure for this sale can be found here. 0.03% of the stock is owned by company insiders.
Institutional investors and hedge funds have recently modified their holdings of the stock. Wagner Bowman Management Corp raised its stake in shares of Cisco Systems by 16.8% during the 3rd quarter. Wagner Bowman Management Corp now owns 66,404 shares of the network equipment provider’s stock worth $3,230,000 after purchasing an additional 9,546 shares during the period. GWM Advisors LLC raised its stake in shares of Cisco Systems by 10.1% during the 3rd quarter. GWM Advisors LLC now owns 305,448 shares of the network equipment provider’s stock worth $14,860,000 after purchasing an additional 28,050 shares during the period. Adams Diversified Equity Fund Inc. raised its stake in shares of Cisco Systems by 65.1% during the 3rd quarter. Adams Diversified Equity Fund Inc. now owns 625,300 shares of the network equipment provider’s stock worth $30,421,000 after purchasing an additional 246,600 shares during the period. Greenleaf Trust raised its stake in shares of Cisco Systems by 5.8% during the 3rd quarter. Greenleaf Trust now owns 68,776 shares of the network equipment provider’s stock worth $3,346,000 after purchasing an additional 3,740 shares during the period. Finally, Palladium Partners LLC raised its stake in shares of Cisco Systems by 1.4% during the 3rd quarter. Palladium Partners LLC now owns 456,374 shares of the network equipment provider’s stock worth $22,202,000 after purchasing an additional 6,400 shares during the period. Institutional investors own 69.04% of the company’s stock.
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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