Investors Buy Shares of Cisco Systems (CSCO) on Weakness

Investors purchased shares of Cisco Systems, Inc. (NASDAQ:CSCO) on weakness during trading hours on Thursday. $185.36 million flowed into the stock on the tick-up and $83.78 million flowed out of the stock on the tick-down, for a money net flow of $101.58 million into the stock. Of all stocks tracked, Cisco Systems had the 7th highest net in-flow for the day. Cisco Systems traded down ($0.11) for the day and closed at $43.57

A number of equities research analysts recently weighed in on CSCO shares. Zacks Investment Research downgraded shares of Cisco Systems from a “buy” rating to a “hold” rating in a research note on Tuesday. BidaskClub downgraded shares of Cisco Systems from a “strong-buy” rating to a “buy” rating in a research note on Saturday, May 19th. Argus raised their target price on shares of Cisco Systems to $55.00 and gave the company a “buy” rating in a research note on Friday, May 18th. JPMorgan Chase & Co. set a $58.00 target price on shares of Cisco Systems and gave the company a “buy” rating in a research note on Thursday, May 17th. Finally, Credit Suisse Group set a $41.00 target price on shares of Cisco Systems and gave the company a “hold” rating in a research note on Thursday, May 17th. Eleven equities research analysts have rated the stock with a hold rating, twenty-four have issued a buy rating and one has given a strong buy rating to the stock. The stock currently has an average rating of “Buy” and an average price target of $46.11.

The company has a current ratio of 2.34, a quick ratio of 2.28 and a debt-to-equity ratio of 0.44. The firm has a market capitalization of $209.90 billion, a PE ratio of 20.12, a P/E/G ratio of 3.11 and a beta of 1.14.

Cisco Systems (NASDAQ:CSCO) last issued its earnings results on Wednesday, May 16th. The network equipment provider reported $0.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.65 by $0.01. Cisco Systems had a negative net margin of 2.61% and a positive return on equity of 19.48%. The firm had revenue of $12.46 billion for the quarter, compared to analysts’ expectations of $12.42 billion. During the same quarter last year, the business earned $0.60 earnings per share. equities analysts forecast that Cisco Systems, Inc. will post 2.34 earnings per share for the current fiscal year.

Cisco Systems declared that its Board of Directors has initiated a stock repurchase program on Wednesday, February 14th that permits the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization permits the network equipment provider to reacquire shares of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its shares are undervalued.

In related news, Director M Michele Burns sold 12,126 shares of the firm’s stock in a transaction on Monday, February 26th. The stock was sold at an average price of $45.37, for a total value of $550,156.62. Following the completion of the sale, the director now owns 74,479 shares of the company’s stock, valued at $3,379,112.23. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP David Goeckeler sold 20,671 shares of the firm’s stock in a transaction on Thursday, March 15th. The stock was sold at an average price of $45.50, for a total value of $940,530.50. The disclosure for this sale can be found here. 0.05% of the stock is currently owned by company insiders.

Hedge funds have recently made changes to their positions in the stock. Bank of New York Mellon Corp lifted its position in Cisco Systems by 12.8% during the fourth quarter. Bank of New York Mellon Corp now owns 122,958,272 shares of the network equipment provider’s stock valued at $4,709,302,000 after buying an additional 13,927,416 shares during the period. Ameriprise Financial Inc. lifted its position in Cisco Systems by 23.6% during the third quarter. Ameriprise Financial Inc. now owns 62,709,508 shares of the network equipment provider’s stock valued at $2,109,614,000 after buying an additional 11,972,070 shares during the period. Amundi Pioneer Asset Management Inc. lifted its position in Cisco Systems by 91.0% during the fourth quarter. Amundi Pioneer Asset Management Inc. now owns 19,498,882 shares of the network equipment provider’s stock valued at $746,806,000 after buying an additional 9,292,187 shares during the period. Stifel Financial Corp lifted its position in Cisco Systems by 6,109.5% during the third quarter. Stifel Financial Corp now owns 8,147,775 shares of the network equipment provider’s stock valued at $273,977,000 after buying an additional 8,016,561 shares during the period. Finally, Mackenzie Financial Corp lifted its position in Cisco Systems by 5,651.3% during the fourth quarter. Mackenzie Financial Corp now owns 4,910,280 shares of the network equipment provider’s stock valued at $188,064,000 after buying an additional 4,824,903 shares during the period. 73.89% of the stock is owned by institutional investors.

About Cisco Systems

Cisco Systems, Inc designs, manufactures, and sells Internet Protocol (IP) based networking and other products related to the communications and information technology industry worldwide. The company offers switching products, including fixed-configuration and modular switches, and storage products that provide connectivity to end users, workstations, IP phones, wireless access points, and servers; and next-generation network routing products that interconnect public and private wireline and mobile networks for mobile, data, voice, and video applications.

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