Cisco Systems (NASDAQ:CSCO) Trading Down 1.3% - Here's Why

Key Points

• Shares of Cisco Systems fell by 1.3% on Thursday, closing at $69.50, with a total trading volume down 12% from the average.
• Cisco recently reported earnings of $0.99 EPS, beating expectations, with revenues of $14.67 billion, marking a year-over-year increase of 7.6%.
• The company declared a quarterly dividend of $0.41 per share to be paid on October 22nd, reflecting an annual yield of 2.4%.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) shares were down 1.3% on Thursday . The company traded as low as $67.48 and last traded at $69.50. Approximately 18,791,878 shares were traded during trading, a decline of 12% from the average daily volume of 21,384,902 shares. The stock had previously closed at $70.40.

Wall Street Analyst Weigh In

Several research firms have weighed in on CSCO. New Street Research reiterated a "neutral" rating and issued a $70.00 target price on shares of Cisco Systems in a report on Friday, May 16th. Deutsche Bank Aktiengesellschaft upgraded shares of Cisco Systems from a "hold" rating to a "buy" rating and boosted their target price for the company from $65.00 to $73.00 in a report on Monday, June 16th. Wolfe Research assumed coverage on shares of Cisco Systems in a report on Tuesday, July 8th. They issued a "peer perform" rating on the stock. Citigroup upped their price objective on shares of Cisco Systems from $68.00 to $71.00 and gave the stock a "buy" rating in a report on Thursday, May 15th. Finally, KeyCorp assumed coverage on shares of Cisco Systems in a report on Thursday, June 26th. They issued an "overweight" rating and a $77.00 price objective on the stock. Eight research analysts have rated the stock with a hold rating, sixteen have given a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $72.90.

Cisco Systems Price Performance

The company has a debt-to-equity ratio of 0.50, a quick ratio of 0.87 and a current ratio of 0.95. The stock's 50-day moving average is $67.89 and its 200 day moving average is $63.21. The stock has a market capitalization of $273.99 billion, a PE ratio of 28.27, a P/E/G ratio of 3.96 and a beta of 0.91.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its earnings results on Wednesday, August 13th. The network equipment provider reported $0.99 EPS for the quarter, beating analysts' consensus estimates of $0.98 by $0.01. The firm had revenue of $14.67 billion for the quarter, compared to the consensus estimate of $14.63 billion. Cisco Systems had a net margin of 17.60% and a return on equity of 26.48%. The company's revenue was up 7.6% on a year-over-year basis. During the same period last year, the firm posted $0.87 EPS. As a group, equities analysts expect that Cisco Systems, Inc. will post 3.04 earnings per share for the current year.

Cisco Systems Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 22nd. Investors of record on Friday, October 3rd will be paid a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a yield of 2.4%. Cisco Systems's dividend payout ratio is currently 66.94%.

Insider Activity

In related news, SVP Maria Victoria Wong sold 762 shares of the firm's stock in a transaction dated Wednesday, June 11th. The shares were sold at an average price of $64.07, for a total value of $48,821.34. Following the completion of the sale, the senior vice president owned 36,937 shares in the company, valued at $2,366,553.59. This trade represents a 2.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Jeetendra I. Patel sold 899 shares of the firm's stock in a transaction dated Thursday, June 12th. The shares were sold at an average price of $64.27, for a total transaction of $57,778.73. Following the completion of the sale, the insider owned 255,377 shares of the company's stock, valued at $16,413,079.79. This trade represents a 0.35% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 97,335 shares of company stock worth $6,271,054 over the last 90 days. 0.01% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cisco Systems

Several hedge funds have recently added to or reduced their stakes in CSCO. Norges Bank acquired a new position in Cisco Systems during the second quarter valued at approximately $3,816,825,000. Kingstone Capital Partners Texas LLC acquired a new position in Cisco Systems during the second quarter valued at approximately $904,542,000. Franklin Resources Inc. lifted its position in Cisco Systems by 46.2% during the second quarter. Franklin Resources Inc. now owns 40,836,858 shares of the network equipment provider's stock valued at $2,833,261,000 after buying an additional 12,904,969 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in Cisco Systems by 37.4% during the first quarter. Goldman Sachs Group Inc. now owns 46,973,293 shares of the network equipment provider's stock valued at $2,898,722,000 after buying an additional 12,775,066 shares in the last quarter. Finally, Nuveen LLC acquired a new position in Cisco Systems during the first quarter valued at approximately $750,495,000. 73.33% of the stock is currently owned by hedge funds and other institutional investors.

About Cisco Systems

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.

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