Cisco Systems, Inc. (NASDAQ:CSCO) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Analysts rate Cisco a "Moderate Buy" — 25 firms cover the stock (14 buy, 7 hold, 4 strong buy) with an average 12‑month target of $89.76; several brokers recently raised targets (CICC to $96, Morgan Stanley to $91, Argus to strong‑buy).
• Quarterly results beat expectations — Cisco reported $1.04 EPS vs. $1.02 expected and $15.35B revenue vs. $15.11B expected, with revenue up 9.7% year‑over‑year and strong profitability metrics (net margin 19.22%, ROE 27.88%).
• Dividend increased and insider selling noted — Cisco raised its quarterly dividend to $0.42 ($1.68 annual, ~2.0% yield; ex‑dividend April 2, payable April 22), while insiders sold ~46,431 shares over the past 90 days and now own 0.01% of the stock.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the twenty-five ratings firms that are currently covering the company, Marketbeat Ratings reports. Seven investment analysts have rated the stock with a hold rating, fourteen have given a buy rating and four have given a strong buy rating to the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $89.7619.

A number of analysts recently commented on the stock. CICC Research boosted their target price on shares of Cisco Systems from $84.00 to $96.00 and gave the stock an "outperform" rating in a report on Friday, February 13th. Morgan Stanley boosted their target price on shares of Cisco Systems from $82.00 to $91.00 and gave the stock an "overweight" rating in a report on Wednesday, December 17th. Argus upgraded shares of Cisco Systems to a "strong-buy" rating in a report on Friday, February 13th. BNP Paribas Exane boosted their target price on shares of Cisco Systems from $86.00 to $87.00 and gave the stock an "outperform" rating in a report on Thursday, February 12th. Finally, Erste Group Bank downgraded shares of Cisco Systems from a "buy" rating to a "hold" rating in a report on Wednesday, February 18th.

Insiders Place Their Bets

In other news, EVP Oliver Tuszik sold 3,132 shares of Cisco Systems stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $79.74, for a total value of $249,745.68. Following the transaction, the executive vice president directly owned 188,613 shares of the company's stock, valued at $15,040,000.62. This trade represents a 1.63% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Deborah L. Stahlkopf sold 7,981 shares of Cisco Systems stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $79.50, for a total transaction of $634,489.50. Following the completion of the transaction, the executive vice president directly owned 187,097 shares in the company, valued at approximately $14,874,211.50. This trade represents a 4.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 46,431 shares of company stock valued at $3,574,820 over the last 90 days. 0.01% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Smithfield Trust Co increased its position in shares of Cisco Systems by 0.3% in the fourth quarter. Smithfield Trust Co now owns 33,666 shares of the network equipment provider's stock worth $2,596,000 after acquiring an additional 117 shares in the last quarter. Main Management ETF Advisors LLC increased its position in shares of Cisco Systems by 1.0% in the fourth quarter. Main Management ETF Advisors LLC now owns 12,528 shares of the network equipment provider's stock worth $965,000 after acquiring an additional 128 shares in the last quarter. First Commonwealth Financial Corp PA increased its position in shares of Cisco Systems by 0.9% in the fourth quarter. First Commonwealth Financial Corp PA now owns 13,656 shares of the network equipment provider's stock worth $1,052,000 after acquiring an additional 128 shares in the last quarter. Cairn Investment Group Inc. increased its position in shares of Cisco Systems by 0.5% in the fourth quarter. Cairn Investment Group Inc. now owns 24,146 shares of the network equipment provider's stock worth $1,860,000 after acquiring an additional 130 shares in the last quarter. Finally, Juncture Wealth Strategies LLC increased its position in shares of Cisco Systems by 0.9% in the fourth quarter. Juncture Wealth Strategies LLC now owns 15,042 shares of the network equipment provider's stock worth $1,159,000 after acquiring an additional 132 shares in the last quarter. 73.33% of the stock is owned by hedge funds and other institutional investors.

Cisco Systems Stock Down 1.1%

CSCO stock opened at $82.22 on Friday. Cisco Systems has a 52 week low of $53.83 and a 52 week high of $88.18. The company has a market capitalization of $324.76 billion, a price-to-earnings ratio of 28.85, a price-to-earnings-growth ratio of 3.10 and a beta of 0.83. The firm's 50-day moving average is $79.74 and its two-hundred day moving average is $76.17. The company has a current ratio of 0.96, a quick ratio of 0.85 and a debt-to-equity ratio of 0.45.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its earnings results on Wednesday, February 11th. The network equipment provider reported $1.04 EPS for the quarter, topping analysts' consensus estimates of $1.02 by $0.02. Cisco Systems had a net margin of 19.22% and a return on equity of 27.88%. The business had revenue of $15.35 billion for the quarter, compared to the consensus estimate of $15.11 billion. During the same period in the previous year, the firm earned $0.94 EPS. The business's revenue for the quarter was up 9.7% on a year-over-year basis. On average, analysts forecast that Cisco Systems will post 3.04 earnings per share for the current fiscal year.

Cisco Systems Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 22nd. Investors of record on Thursday, April 2nd will be issued a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Thursday, April 2nd. This is an increase from Cisco Systems's previous quarterly dividend of $0.41. Cisco Systems's payout ratio is presently 58.95%.

Cisco Systems Company Profile

Cisco Systems, Inc is a global technology company that designs, manufactures and sells networking hardware, software and telecommunications equipment. Its core business focuses on enabling enterprise and service-provider networks through products such as routers, switches, network security appliances and wireless systems. Over time Cisco has broadened its portfolio to emphasize software-defined networking, cybersecurity, cloud infrastructure and edge computing solutions that help organizations build and manage modern IT environments.

In addition to hardware, Cisco offers a growing range of software platforms and subscription services for network management, security, analytics and collaboration.

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