Cisco Systems (NASDAQ:CSCO) Shares Down 0.6% - Should You Sell?

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report)'s share price dropped 0.6% during trading on Tuesday . The company traded as low as $63.56 and last traded at $63.56. Approximately 2,487,177 shares changed hands during trading, a decline of 88% from the average daily volume of 20,327,044 shares. The stock had previously closed at $63.92.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on CSCO. DZ Bank upgraded shares of Cisco Systems from a "hold" rating to a "buy" rating in a report on Tuesday, February 18th. The Goldman Sachs Group upped their price objective on shares of Cisco Systems from $56.00 to $63.00 and gave the company a "neutral" rating in a research note on Thursday, February 13th. Piper Sandler raised their target price on shares of Cisco Systems from $60.00 to $64.00 and gave the stock a "neutral" rating in a research report on Thursday, May 15th. Barclays reiterated an "equal weight" rating on shares of Cisco Systems in a report on Wednesday. Finally, UBS Group raised their price objective on Cisco Systems from $62.00 to $70.00 and gave the stock a "neutral" rating in a report on Thursday, February 13th. Eight research analysts have rated the stock with a hold rating, twelve have issued a buy rating and three have issued a strong buy rating to the stock. Based on data from MarketBeat.com, Cisco Systems currently has an average rating of "Moderate Buy" and an average target price of $68.00.

Cisco Systems Trading Up 0.2%

The company has a debt-to-equity ratio of 0.43, a current ratio of 0.87 and a quick ratio of 0.79. The business's 50-day simple moving average is $58.95 and its two-hundred day simple moving average is $59.83. The stock has a market capitalization of $252.00 billion, a price-to-earnings ratio of 27.69, a PEG ratio of 4.16 and a beta of 0.89.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its earnings results on Wednesday, May 14th. The network equipment provider reported $0.96 earnings per share for the quarter, beating the consensus estimate of $0.92 by $0.04. Cisco Systems had a net margin of 16.96% and a return on equity of 26.08%. The business had revenue of $14.15 billion for the quarter, compared to analyst estimates of $14.05 billion. During the same quarter in the previous year, the business posted $0.88 EPS. The business's quarterly revenue was up 11.4% on a year-over-year basis. On average, research analysts anticipate that Cisco Systems, Inc. will post 3.04 earnings per share for the current fiscal year.

Cisco Systems Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 23rd. Investors of record on Thursday, July 3rd will be issued a dividend of $0.41 per share. The ex-dividend date is Thursday, July 3rd. This represents a $1.64 annualized dividend and a dividend yield of 2.59%. Cisco Systems's payout ratio is currently 66.94%.

Cisco Systems declared that its board has authorized a share buyback program on Wednesday, February 12th that authorizes the company to repurchase $15.00 billion in shares. This repurchase authorization authorizes the network equipment provider to reacquire up to 6% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Cisco Systems

In other news, EVP Deborah L. Stahlkopf sold 11,808 shares of the firm's stock in a transaction that occurred on Friday, February 21st. The shares were sold at an average price of $64.37, for a total transaction of $760,080.96. Following the completion of the sale, the executive vice president now owns 200,191 shares of the company's stock, valued at approximately $12,886,294.67. This trade represents a 5.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Maria Victoria Wong sold 762 shares of the company's stock in a transaction on Wednesday, March 12th. The shares were sold at an average price of $60.99, for a total transaction of $46,474.38. Following the completion of the sale, the senior vice president now directly owns 44,155 shares in the company, valued at $2,693,013.45. This represents a 1.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 34,239 shares of company stock valued at $2,181,437 over the last 90 days. 0.01% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Cisco Systems

Hedge funds and other institutional investors have recently modified their holdings of the stock. FPC Investment Advisory Inc. bought a new position in Cisco Systems during the 4th quarter worth approximately $26,000. Navigoe LLC bought a new position in shares of Cisco Systems in the 4th quarter worth about $26,000. Mpwm Advisory Solutions LLC acquired a new position in shares of Cisco Systems in the 4th quarter valued at about $26,000. JDM Financial Group LLC grew its position in shares of Cisco Systems by 160.4% during the 4th quarter. JDM Financial Group LLC now owns 487 shares of the network equipment provider's stock valued at $29,000 after buying an additional 300 shares during the last quarter. Finally, Runnymede Capital Advisors Inc. acquired a new stake in Cisco Systems during the fourth quarter worth about $30,000. Institutional investors own 73.33% 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 in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization.