The stock of Cisco Systems Inc. (NASDAQ:CSCO) increased by $0.15 on Friday to finish at $53.94, up 0.29 percent. The last five days have seen an average of 13,303,527 shares of common stock traded. 17 times new highs were reached in the current year, with a gain of $6.20. The average number of shares traded over the last 20 days was 17,805,746, while the average volume over the last 50 days totaled 17,333,711.
CSCO stock appreciated 7.08% since last month. On 07/17/23, the company’s shares reached a one-month low of $50.14. The stock touched a high of $54.14 on 08/10/23, after rallying from a low of $38.60 in 52 weeks. The price of CSCO stock has risen by 13.23% or $6.20 this year, reaching a new high 17 times. Still, the stock price is down -0.36% from the 52-week high.
Insider Transactions
CSCO stock investors should be aware that Cisco Systems Inc. (CSCO) stock had its last reported insider trading activity 53 days ago on Jun 22. On Jun 22, EVP & Chief Operating Officer Martinez Maria sold 10,000 shares at $50.88 each. This transaction resulted in the insider making $508,798. On Jun 22, Herren Richard Scott sold 2,579 shares at a price of US$50.65. After the transaction, the insider now owns 281,493 shares. Director MCGEARY RODERICK C had earlier sold 10,000 shares on Jun 14 for $50.96 a share. The transaction was completed for $509,628.
Valuation Metrics
Cisco Systems Inc. (CSCO) has a trailing price-to-earnings (P/E) ratio of 19.40. Beta for the stock is 0.96. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 3.97, the price-to-book (PB) ratio of 5.22, and the price-to-cash flow ratio of 12.95.
Company paid $0.39 per share in dividends, remained unchanged from $0.39 last year. A $0.01 dividend increase was reported on Wednesday February 15 2023.
Financial Health
For the three months ended April 29, Cisco Systems Inc.’s quick ratio was 1.30, while its current ratio was 1.40, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending April 29 is 0.16, and the total debt to equity ratio is 0.20. As far as profitability goes, gross margin for the trailing twelve months is 62.00% percent. Cisco Systems Inc.’s EBITDA margin for the year ended April 29 was 31.18%, whereas its operating margin stood at 25.90% for the same period. Based on annual data, it had gross profit of $32.25 billion and revenue of $51.56 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. CSCO’s return on assets (ROA) during the last 12 months has been 12.10%. There was a 22.90% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 28.00%.
Earnings Surprise
According to Cisco Systems Inc.’s quarterly financial report for the quarter that ended April 29, it had $6.66 billion in total debt versus $15.24 billion in cash and short-term investments. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $14.57 billion, while revenues rose by 11.91% to $13.59 billion. It was predicted that Cisco Systems Inc.’s quarterly earnings would be $1, but it ended up being $0.97, beating the consensus by 3.10%. EBITDA was $4.4 billion for the quarter. At the end of Cisco Systems Inc.’s most recent quarter ended April 29, its liabilities totaled 55.23 billion, while its total debt was $9.49 billion. Equity owned by shareholders amounts to $4.08 billion.
Technical Picture
Here’s a quick look at Cisco Systems Inc.’s (CSCO) price momentum from a technical perspective. As of 11 August, the RSI 9-day stood at 67.36%, suggesting the stock is Neutral, with a 9.38% historical volatility rate.
The stochastic %K and %D were 80.28% and 71.13% respectively, while the average true range (ATR) was 0.77. Based on the 14-day stochastic reading of 87.50%, the RSI (14) reading is 63.62%. On the 9-day MACD Oscillator, the stock is at 0.51, and the 14-day reading is at 0.71.
Analyst Ratings
In its analyst report released on July 20, 2023, Exane BNP Paribas began covering Cisco Systems Inc. (NASDAQ: CSCO). The stock was rated as an Underperform by the brokerage firm. Analysts have assigned Cisco Systems Inc. (CSCO) an Overweight rating. CSCO is a stock that is recommended for selling by 1 brokerage firm, while 15 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 2 rates it overweight and 9 others recommend it as a buy.
What is CSCO’s price target for the next 12 months?
The current consensus forecast for the stock is between $45.00 and $64.00, with a median target price of $55.90. In analyzing these forecasts, the average price target given by analysts for Cisco Systems Inc. (CSCO) is $55.84.
