Is Cisco Systems Inc. (CSCO) Good For Your Portfolio?

Cisco Systems Inc. (NASDAQ:CSCO) saw an upside of 0.11% to close Friday at $55.08 after adding $0.06 on the day. The 5-day average trading volume is 16,307,800 shares of the company’s common stock. It has gained $55.41 in the past week. An average of 19,013,490 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 16,540,535.

CSCO’s 1-month performance is -6.01% or -$3.60 on its low of $52.98 reached on 10/06/21. The company’s shares have touched a 52-week low of $35.28 and high of $60.27, with the stock’s rally to the 52-week high happening on 08/25/21. YTD, CSCO has achieved 23.08% or $10.33. However, the current price is down -8.61%% from the 52-week high price.


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Insider Transactions

On Sep 13, 28 days have gone by since the last insider trading activity for Cisco Systems Inc. (CSCO). BHATT PRAT (SVP & Chief Acctg Officer) most recently sold 468 shares at $58.35 per share on Sep 13. This transaction cost the insider $27,309. EVP & Chief Cust & Prtnr Offcr, Elliott Geraldine, sold 50,000 shares at a price of $59.40 on Aug 25. Then, on Aug 25, Chair and CEO Robbins Charles sold 6,543 shares at a price of $59.69 per share. This transaction amounted to $390,572.

Valuation Metrics

The company’s PE ratio for the last five years has touched a high of 702.00 and a low of 12.97. CSCO stock has a beta of 0.92. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 4.66 while the price-to-book (PB) in the most recent quarter is 5.78, with the price to cash flow ratio at 28.00.

Cisco Systems Inc. pays an annual dividend of $1.48 per share. Its dividend yield is 2.69% and the payout ratio is 59.70%. CSCO paid $0.37 a share compared with prior rate of $0.37, down 0.0% from last year’s. The company has boosted its dividend for the last 1 consecutive years with the latest dividend increase of $0.01 reported on Tuesday February 9 2021. Measured over the last 3 years, the Dividend has been growing by 26.55% yearly.

It is projected that Cisco Systems Inc.’s next ex-dividend date will be on 4-Jan. CSCO is expected to distribute $0.37 as its next dividend.

Cisco Systems Inc.’s quick ratio for the period ended July 30 was 1.50, with the current ratio over the same period at 1.50 meaning that CSCO stock is able to fulfill its debt obligations. As well, the company’s long term debt to equity for the quarter ending July 30 was 0.24, while the total debt to equity was 0.29. In terms of profitability, the gross margin trailing 12 months is 64.00%. The trailing 12-month EBITDA margin is 31.05% while for the period ending July 30; Cisco Systems Inc.’s operating margin was 25.00%. The firm’s gross profit as reported stood at $31.89 billion against revenue of $49.82 billion.

Earnings Surprise

For the quarterly period ending July 30 this year, Cisco Systems Inc.’s cash and short-term investments amounted to $15.34 billion against total debt of $12.69 billion. Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 7.41% to $13.13 billion, while revenue of $12.8 billion was 2.46% off the previous quarter. Analysts expected CSCO to announce $0.82 per share in earnings in its latest quarter, but it posted $0.84, representing a 2.40% surprise. EBITDA for the quarter stood at more than $4.06 billion. CSCO stock balance sheet for the quarter ending July 30 shows that total liabilities totaled 56.22 billion, with total debt at $12.69 billion. Shareholders hold equity totaling $4.22 billion

Technical Picture

Let’s look briefly at Cisco Systems Inc. (CSCO) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 08 October was 44.69% to suggest the stock is trending Neutral, with historical volatility in this time period at 20.93%.

The stock’s 5-day moving average is $54.59, reflecting a -0.11% or -$0.06 change from its current price. CSCO is currently trading -4.85% above its 20-day SMA, +4.06% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by +0.02% and +23.25% respectively.

Stochastic %K and %D was 42.41% and 28.63% and the average true range (ATR) pointed at 1.09. The RSI (14) points at 43.47%, while the 14-day stochastic is at 53.64% with the period’s ATR at 1.05. The stock’s 9-day MACD Oscillator is pointing at -0.16 and -0.60 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Cisco Systems Inc. (NASDAQ: CSCO), Credit Suisse upgraded it to an Outperform rating. They previously had a Neutral rating on the stock. Analysts offering their rating for CSCO stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate CSCO as a “sell,”, while 13 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 3 rates the stock as overweight while 14 have offered a “buy” rating.

What is CSCO’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $52.00 and a high of $74.00, with their median price target at $64.00. Looking at these predictions, the average price target given by analysts is for Cisco Systems Inc. (CSCO) stock is $62.85.

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