Cisco Systems (NASDAQ:CSCO) Shares Gap Down on Analyst Downgrade

Cisco Systems, Inc. (NASDAQ:CSCO) shares gapped down prior to trading on Friday after Zacks Investment Research downgraded the stock from a hold rating to a sell rating. The stock had previously closed at $44.26, but opened at $44.91. Zacks Investment Research now has a $47.00 price target on the stock. Cisco Systems shares last traded at $44.98, with a volume of 1,357,256 shares.

Several other analysts also recently issued reports on CSCO. Needham & Company LLC reiterated a “hold” rating on shares of Cisco Systems in a report on Thursday. Credit Suisse Group set a $46.00 price target on Cisco Systems and gave the company a “neutral” rating in a report on Thursday. UBS Group reiterated a “buy” rating and issued a $54.00 price target (down from $58.00) on shares of Cisco Systems in a report on Thursday. ValuEngine downgraded Cisco Systems from a “hold” rating to a “sell” rating in a report on Friday, November 1st. Finally, Citigroup lowered their price target on Cisco Systems from $57.00 to $55.00 and set a “buy” rating for the company in a report on Thursday. Three equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and sixteen have issued a buy rating to the company’s stock. Cisco Systems has a consensus rating of “Hold” and an average target price of $53.79.

In related news, CEO Charles Robbins sold 18,955 shares of Cisco Systems stock in a transaction dated Friday, September 13th. The stock was sold at an average price of $50.04, for a total value of $948,508.20. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Mark D. Chandler sold 546 shares of Cisco Systems stock in a transaction dated Monday, August 19th. The stock was sold at an average price of $47.92, for a total value of $26,164.32. The disclosure for this sale can be found here. Insiders have sold 193,130 shares of company stock valued at $9,359,179 over the last 90 days. Insiders own 0.03% of the company’s stock.

A number of large investors have recently bought and sold shares of CSCO. Neville Rodie & Shaw Inc. grew its stake in Cisco Systems by 6.3% in the second quarter. Neville Rodie & Shaw Inc. now owns 69,516 shares of the network equipment provider’s stock worth $3,805,000 after purchasing an additional 4,100 shares in the last quarter. Bath Savings Trust Co lifted its holdings in Cisco Systems by 1.7% in the second quarter. Bath Savings Trust Co now owns 21,082 shares of the network equipment provider’s stock worth $1,153,000 after acquiring an additional 356 shares during the last quarter. Private Trust Co. NA lifted its holdings in Cisco Systems by 0.4% in the second quarter. Private Trust Co. NA now owns 74,379 shares of the network equipment provider’s stock worth $4,070,000 after acquiring an additional 315 shares during the last quarter. Baystate Wealth Management LLC lifted its holdings in Cisco Systems by 2.0% in the second quarter. Baystate Wealth Management LLC now owns 10,228 shares of the network equipment provider’s stock worth $600,000 after acquiring an additional 202 shares during the last quarter. Finally, Dorsey Wright & Associates lifted its holdings in Cisco Systems by 557.4% in the second quarter. Dorsey Wright & Associates now owns 40,735 shares of the network equipment provider’s stock worth $2,229,000 after acquiring an additional 34,539 shares during the last quarter. Institutional investors and hedge funds own 73.79% of the company’s stock.

The company has a debt-to-equity ratio of 0.43, a current ratio of 1.51 and a quick ratio of 1.46. The stock’s fifty day simple moving average is $47.31 and its 200-day simple moving average is $51.80. The stock has a market cap of $205.27 billion, a P/E ratio of 15.82, a PEG ratio of 2.35 and a beta of 1.28.

Cisco Systems (NASDAQ:CSCO) last issued its earnings results on Wednesday, November 13th. The network equipment provider reported $0.84 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.81 by $0.03. Cisco Systems had a net margin of 22.39% and a return on equity of 32.43%. The firm had revenue of $13.16 billion for the quarter, compared to analysts’ expectations of $13.09 billion. During the same quarter last year, the company posted $0.75 earnings per share. Cisco Systems’s revenue was up .7% on a year-over-year basis. Analysts forecast that Cisco Systems, Inc. will post 3.03 EPS for the current year.

The firm also recently announced a quarterly dividend, which was paid on Wednesday, October 23rd. Shareholders of record on Friday, October 4th were issued a $0.35 dividend. The ex-dividend date of this dividend was Thursday, October 3rd. This represents a $1.40 dividend on an annualized basis and a yield of 3.10%. Cisco Systems’s dividend payout ratio is currently 49.12%.

Cisco Systems Company Profile (NASDAQ:CSCO)

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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