How Cisco Systems Inc. (CSCO) Works From A Technical Perspective


Cisco Systems Inc. (NASDAQ:CSCO) finished Thursday with an addition of $0.43 to close at $47.50, an upside of 0.91 percent. An average of 13,196,640 shares of common stock have been traded in the last five days. There was a fall of -$0.16 in the past week, and it reached a new high 1 time over the past 12 months. The last 20 days have seen an average of 18,147,475 shares traded, while the 50-day average volume stands at 19,195,818.

CSCO stock has decreased by -1.62% in the last month. The company shares reached their 1-month lowest point of $46.69 on 12/22/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $38.60 and a high of $64.29 in 52 weeks. It has reached a new high 1 time so far this year and lost -25.04% or -$15.87 in price. In spite of this, the price is down -26.11% from the 52-week high.

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Insider Transactions

CSCO stock investors should be aware that Cisco Systems Inc. (CSCO) stock had its last reported insider trading activity 17 days ago on Dec 13. In this transaction, the insider spent $31,898. SVP & Chief Acctg Officer, BHATT PRAT, disposed of 468 shares at a price of $50.10 on Dec 13. The insider now owns more than $23,448 worth of shares. Prior to that, EVP and CFO Herren Richard Scott went on to Sale 98,342 shares at $50.03 each on Dec 01. An amount of $4,920,414 was transacted.

Valuation Metrics

Cisco Systems Inc. (CSCO) has a trailing price-to-earnings (P/E) ratio of 17.19. The stock’s beta is 0.98. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.72, the price-to-book (PB) ratio at 4.93, and the price-to-cash flow ratio at 26.52.

The company has a payout ratio of 51.70%. The company’s most recent quarterly dividend payment was $0.38 a share, without any change from last year. Its latest increase dividend $0.01 reported on Wednesday February 16 2022.

Financial Health

The quick ratio of Cisco Systems Inc. for the three months ended October 30 was 1.30, and the current ratio was 1.40, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.21 and a total debt to equity ratio of 0.24 for the quarter ending October 30. Its gross profit as reported stood at $32.25 billion compared to revenue of $51.56 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Cisco Systems Inc.’s return on assets was 12.70%.

Earnings Surprise

For the three-month period that ended October 30, Cisco Systems Inc. had $12.49 billion in cash and short-term investments compared to $7.63 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $2.67 billion in the quarter, while revenues of $2.81 billion were shrunk -11.61%. The analyst consensus anticipated Cisco Systems Inc.’s latest quarter earnings to come in at $0.84 per share, but it turned out to be $0.86, a 2.40% surprise. For the quarter, EBITDA amounted to $3.96 billion. Shareholders own equity worth $4.11 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Cisco Systems Inc. (CSCO) price momentum. RSI 9-day as of the close on 29 December was 45.66%, suggesting the stock is Neutral, with historical volatility in this time frame at 10.28%.

As of today, CSCO’s price is $47.38 -0.34% or -$0.16 from its 5-day moving average. CSCO is currently trading -4.47% lower than its 20-day SMA and +5.51% higher than its 100-day SMA. However, the stock’s current price level is +13.66% above the SMA50 and -14.57% below the SMA200.

The stochastic %K and %D were 16.94% and 17.96%, respectively, and the average true range (ATR) was 0.84. With the 14-day stochastic at 20.25% and the average true range at 0.89, the RSI (14) stands at 49.38%. The stock has reached -0.09 on the 9-day MACD Oscillator while the 14-day reading was at -0.63.

Analyst Ratings

Barclays downgraded Cisco Systems Inc. (NASDAQ: CSCO) to a an Equal weight rating in its most recent analyst report. Previously, the stock was rated as an Overweight. The consensus rating for Cisco Systems Inc. (CSCO) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell CSCO, while 14 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 11 others rate it as a “buy”.


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