Cisco Systems Inc. (CSCO): Technicals Say You should Hold

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Cisco Systems Inc. (NASDAQ:CSCO) saw an upside of 1.54% to close Monday at $47.50 after adding $0.72 on the day. The 5-day average trading volume is 19,063,699 shares of the company’s common stock. It has gained $48.94 in the past week and touched a new high 1 time within the past 5 days. An average of 15,729,455 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 18,635,023.

CSCO’s 1-month performance is 0.27% or $0.02 on its low of $45.67 reached on 01/20/23. The company’s shares have touched a 52-week low of $38.60 and high of $58.34, with the stock’s rally to the 52-week high happening on 01/12/23. YTD, CSCO has lost -0.29% or -$0.14 and has reached a new high 7 times. However, the current price is down -18.58% from the 52-week high price.


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Insider Transactions

CSCO stock investors last saw insider trading activity on Dec 13.Sharritts Jeffery S. (EVP & Chief Cust & Prtnr Offcr) most recently sold 637 shares at $50.08 per share on Dec 13. This transaction cost the insider $31,898. SVP & Chief Acctg Officer, BHATT PRAT, sold 468 shares at a price of $50.10 on Dec 13. Then, on Dec 01, EVP and CFO Herren Richard Scott sold 98,342 shares at a price of $50.03 per share. This transaction amounted to $4,920,414.

Valuation Metrics

CSCO stock has a beta of 0.96. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 3.71 while the price-to-book (PB) in the most recent quarter is 4.85, with the price to cash flow ratio at 27.66.

Cisco Systems Inc.’s quick ratio for the period ended October 30 was 1.30, with the current ratio over the same period at 1.50. As well, the company’s long term debt to equity for the quarter ending October 30 was 0.19, while the total debt to equity was 0.22. In terms of profitability, the gross margin trailing 12 months is 62.20%. The firm’s gross profit as reported stood at $32.25 billion against revenue of $51.56 billion.

Earnings Surprise

For the quarterly period ending October 30 this year, Cisco Systems Inc.’s cash and short-term investments amounted to $12.49 billion against total debt of $9.9 billion. Net income and sales went up compared to those figures reported in the previous quarter. Net income shrunk -11.61% to $2.67 billion, while revenue of $2.81 billion was -5.43% off the previous quarter. Analysts expected CSCO to announce $0.84 per share in earnings in its latest quarter, but it posted $0.86, representing a 2.40% surprise. EBITDA for the quarter stood at more than $3.96 billion. CSCO stock balance sheet for the quarter ending October 30 shows that total liabilities totaled 52.78 billion, with total debt at $9.9 billion. Shareholders hold equity totaling $4.11 billion.

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 23 January was 46.95% to suggest the stock is trending Neutral, with historical volatility in this time period at 19.09%.

The stock’s 5-day moving average is $47.14, reflecting a -2.82% or -$1.38 change from its current price. CSCO is currently trading -0.34% above its 20-day SMA, +3.92% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +6.48% and SMA200 by-13.51%.

Stochastic %K and %D was 26.83% and 19.39% and the average true range (ATR) pointed at 0.92. The RSI (14) points at 48.20%, while the 14-day stochastic is at 48.67% with the period’s ATR at 0.92. The stock’s 9-day MACD Oscillator is pointing at -1.04 and -1.01 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Cisco Systems Inc. (NASDAQ: CSCO), Barclays downgraded it to an Equal weight rating. They previously had an Overweight rating on the stock. Analysts offering their rating for CSCO stock have a consensus rating for the stock as Overweight. Currently, 1 brokerage advisors rate CSCO as a “sell,”, while 14 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 2 rates the stock as overweight while 11 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 $44.00 and a high of $67.00, with their median price target at $52.00. Looking at these predictions, the average price target given by analysts is for Cisco Systems Inc. (CSCO) stock is $53.86.

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