The stock of Cisco Systems Inc. (NASDAQ:CSCO) increased by $0.5 on Monday to finish at $56.20, up 0.90 percent. The last five days have seen an average of 16,484,721 shares of common stock traded. 20 times new highs were reached in the current year, with a gain of $8.56. The average number of shares traded over the last 20 days was 18,780,465, while the average volume over the last 50 days totaled 18,695,678.
CSCO stock appreciated 7.89% since last month. On 07/31/23, the company’s shares reached a one-month low of $51.74. The stock touched a high of $56.47 on 08/24/23, after rallying from a low of $38.60 in 52 weeks. The price of CSCO stock has risen by 17.97% or $8.56 this year, reaching a new high 20 times. Still, the stock price is down -0.49% 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 11 days ago on Aug 18. On Aug 18, Chair and CEO Robbins Charles sold 17,687 shares at $55.16 each. This transaction resulted in the insider making $975,617. On Aug 18, Martinez Maria sold 10,000 shares at a price of US$55.18. After the transaction, the insider now owns 399,240 shares. SVP & Chief Acctg Officer Wong Maria Victoria had earlier sold 6,186 shares on Aug 18 for $54.65 a share. The transaction was completed for $338,065.
Valuation Metrics
Cisco Systems Inc. (CSCO) has a trailing price-to-earnings (P/E) ratio of 18.30. Beta for the stock is 0.94. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 3.98, the price-to-book (PB) ratio of 5.44, and the price-to-cash flow ratio of 14.70.
Company paid $0.39 per share in dividends, remained unchanged from $0.39 last year.
Financial Health
For the three months ended July 30, 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 July 30 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 62.70% percent. Cisco Systems Inc.’s operating margin stood at 24.30% for the same period. Based on annual data, it had gross profit of $35.75 billion and revenue of $57.0 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 11.90%. 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 27.60%.
Earnings Surprise
According to Cisco Systems Inc.’s quarterly financial report for the quarter that ended July 30. 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 $1.06, but it ended up being $0.98, beating the consensus by 8.20%. At the end of Cisco Systems Inc.’s most recent quarter ended July 30, its liabilities totaled 57.5 billion, while its total debt was $8.39 billion.
Technical Picture
Here’s a quick look at Cisco Systems Inc.’s (CSCO) price momentum from a technical perspective. As of 28 August, the RSI 9-day stood at 71.52%, suggesting the stock is Overbought, with a 18.72% historical volatility rate.
The stochastic %K and %D were 81.34% and 82.60% respectively, while the average true range (ATR) was 0.87. Based on the 14-day stochastic reading of 92.79%, the RSI (14) reading is 68.81%. On the 9-day MACD Oscillator, the stock is at 0.52, and the 14-day reading is at 1.13.
Analyst Ratings
In a note to investors, Deutsche Bank maintained its a Hold rating on Cisco Systems Inc. (NASDAQ: CSCO). However, the firm raised their price target to $58, indicating a possible decrease of -4.07% in the stock price. Analysts have assigned Cisco Systems Inc. (CSCO) an Overweight rating. CSCO is a stock that is recommended for selling by 1 brokerage firm, while 16 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 2 rates it overweight and 8 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 $68.00, with a median target price of $58.00. In analyzing these forecasts, the average price target given by analysts for Cisco Systems Inc. (CSCO) is $57.97.
