Cisco Systems Inc. (NASDAQ:CSCO) finished Wednesday with an addition of $0.52 to close at $55.98, an upside of 0.94 percent. An average of 25,263,320 shares of common stock have been traded in the last five days. There was a gain of $3.02 in the past week, and it reached a new high 21 times over the past 12 months. The last 20 days have seen an average of 19,229,295 shares traded, while the 50-day average volume stands at 18,988,781.
CSCO stock has increased by 4.44% in the last month. The company shares reached their 1-month lowest point of $51.74 on 07/31/23. With the stock rallying to its 52-week high on 08/23/23, shares of the company touched a low of $38.60 and a high of $55.83 in 52 weeks. It has reached a new high 19 times so far this year and achieved 17.51% or $8.34 in price. In spite of this, the price is up 0.26% 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 6 days ago on Aug 18. In this transaction, the insider spent $975,617. EVP & Chief Operating Officer, Martinez Maria, disposed of 10,000 shares at a price of $55.18 on Aug 18. The insider now owns more than $551,849 worth of shares. Prior to that, SVP & Chief Acctg Officer Wong Maria Victoria went on to Sale 6,186 shares at $54.65 each on Aug 18. An amount of $338,065 was transacted.
Valuation Metrics
Cisco Systems Inc. (CSCO) has a trailing price-to-earnings (P/E) ratio of 18.23. The stock’s beta is 0.94. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.98, the price-to-book (PB) ratio at 5.41, and the price-to-cash flow ratio at 14.68.
Financial Health
The quick ratio of Cisco Systems Inc. for the three months ended July 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 0.16 and a total debt to equity ratio of 0.20 for the quarter ending July 30. Its gross profit as reported stood at $35.75 billion compared to revenue of $57.0 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 11.90%.
Earnings Surprise
For the three-month period that ended July 30, Cisco Systems Inc. had $6.66 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 $3.21 billion in the quarter, while revenues of $2.77 billion were grew 5.23%. The analyst consensus anticipated Cisco Systems Inc.’s latest quarter earnings to come in at $1.06 per share, but it turned out to be $1.14, a 7.50% surprise.
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 23 August was 77.17%, suggesting the stock is Overbought, with historical volatility in this time frame at 17.93%.
As of today, CSCO’s price is $55.33 +5.70% or $3.02 from its 5-day moving average. CSCO is currently trading +5.19% higher than its 20-day SMA and +8.85% higher than its 100-day SMA. However, the stock’s current price level is +10.90% above the SMA50 and +27.66% above the SMA200.
The stochastic %K and %D were 90.95% and 85.47%, respectively, and the average true range (ATR) was 0.89. With the 14-day stochastic at 94.28% and the average true range at 0.88, the RSI (14) stands at 71.80%. The stock has reached 1.11 on the 9-day MACD Oscillator while the 14-day reading was at 1.65.
Analyst Ratings
Deutsche Bank reiterated its a Hold rating on Cisco Systems Inc. (NASDAQ: CSCO), but raised their price target to $54, indicating a potential price decrease of -3.67% for the stock. 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 16 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 8 others rate it as a “buy”.
What is CSCO’s price target for the next 12 months?
Analysts predict a range of price targets between $45.00 and $68.00, with a median target of $58.00. Taking a look at these predictions, the average price target given by analysts for Cisco Systems Inc. (CSCO) stock is $57.97.
