Cisco Systems (NASDAQ:CSCO) Shares Down 1.4% - Should You Sell?

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report)'s share price dropped 1.4% on Tuesday . The stock traded as low as $60.85 and last traded at $61.17. Approximately 7,170,227 shares were traded during trading, a decline of 64% from the average daily volume of 19,909,787 shares. The stock had previously closed at $62.06.

Analysts Set New Price Targets

CSCO has been the topic of several recent research reports. Melius Research upgraded shares of Cisco Systems from a "hold" rating to a "strong-buy" rating in a research report on Monday, January 6th. Morgan Stanley boosted their price target on shares of Cisco Systems from $62.00 to $68.00 and gave the company an "overweight" rating in a research report on Tuesday, December 17th. The Goldman Sachs Group boosted their price target on shares of Cisco Systems from $56.00 to $63.00 and gave the company a "neutral" rating in a research report on Thursday, February 13th. JPMorgan Chase & Co. boosted their price target on shares of Cisco Systems from $69.00 to $73.00 and gave the company an "overweight" rating in a research report on Thursday, February 13th. Finally, Piper Sandler restated a "neutral" rating on shares of Cisco Systems in a research report on Thursday, March 6th. Seven investment analysts have rated the stock with a hold rating, fifteen have given a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $66.63.

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Cisco Systems Price Performance

The company has a debt-to-equity ratio of 0.43, a current ratio of 0.87 and a quick ratio of 0.79. The stock has a market cap of $240.53 billion, a P/E ratio of 26.40, a P/E/G ratio of 4.16 and a beta of 0.79. The company's 50 day simple moving average is $61.74 and its 200 day simple moving average is $57.62.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its earnings results on Wednesday, February 12th. The network equipment provider reported $0.77 EPS for the quarter, missing the consensus estimate of $0.91 by ($0.14). Cisco Systems had a net margin of 16.96% and a return on equity of 26.08%. As a group, equities analysts forecast that Cisco Systems, Inc. will post 3.04 earnings per share for the current year.

Cisco Systems Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 23rd. Stockholders of record on Thursday, April 3rd will be issued a $0.41 dividend. This represents a $1.64 annualized dividend and a dividend yield of 2.71%. The ex-dividend date of this dividend is Thursday, April 3rd. This is a boost from Cisco Systems's previous quarterly dividend of $0.40. Cisco Systems's dividend payout ratio is 71.62%.

Cisco Systems declared that its board has authorized a stock buyback plan on Wednesday, February 12th that authorizes the company to repurchase $15.00 billion in shares. This repurchase authorization authorizes the network equipment provider to buy up to 6% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's leadership believes its shares are undervalued.

Insider Activity

In related news, EVP Thimaya K. Subaiya sold 2,065 shares of the stock in a transaction on Wednesday, March 12th. The shares were sold at an average price of $60.70, for a total transaction of $125,345.50. Following the completion of the transaction, the executive vice president now owns 191,184 shares in the company, valued at approximately $11,604,868.80. This represents a 1.07 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Maria Victoria Wong sold 762 shares of the stock in a transaction on Wednesday, March 12th. The stock was sold at an average price of $60.99, for a total transaction of $46,474.38. Following the transaction, the senior vice president now owns 44,155 shares of the company's stock, valued at $2,693,013.45. The trade was a 1.70 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 70,175 shares of company stock worth $4,490,001 over the last quarter. 0.01% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the business. FPC Investment Advisory Inc. acquired a new stake in Cisco Systems in the fourth quarter valued at $26,000. Navigoe LLC acquired a new stake in Cisco Systems in the fourth quarter valued at $26,000. Mpwm Advisory Solutions LLC acquired a new stake in Cisco Systems in the fourth quarter valued at $26,000. JDM Financial Group LLC lifted its stake in Cisco Systems by 160.4% in the fourth quarter. JDM Financial Group LLC now owns 487 shares of the network equipment provider's stock valued at $29,000 after acquiring an additional 300 shares during the last quarter. Finally, Runnymede Capital Advisors Inc. acquired a new stake in Cisco Systems in the fourth quarter valued at $30,000. Institutional investors and hedge funds own 73.33% of the company's stock.

Cisco Systems Company Profile

Cisco Systems, Inc designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization.