Cisco Systems (NASDAQ:CSCO) Stock Price Down 1.8% - Here's What Happened

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report)'s share price dropped 1.8% during mid-day trading on Tuesday . The stock traded as low as $59.91 and last traded at $59.81. Approximately 3,237,196 shares changed hands during trading, a decline of 82% from the average daily volume of 17,848,766 shares. The stock had previously closed at $60.89.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on CSCO. Piper Sandler reissued a "neutral" rating on shares of Cisco Systems in a research note on Thursday, March 6th. The Goldman Sachs Group boosted their price objective on Cisco Systems from $56.00 to $63.00 and gave the company a "neutral" rating in a research note on Thursday, February 13th. Barclays reiterated an "equal weight" rating on shares of Cisco Systems in a report on Thursday, March 6th. Morgan Stanley raised their price objective on shares of Cisco Systems from $62.00 to $68.00 and gave the stock an "overweight" rating in a research report on Tuesday, December 17th. Finally, DZ Bank raised shares of Cisco Systems from a "hold" rating to a "buy" rating in a research note on Tuesday, February 18th. Seven analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $66.63.

Cisco Systems Trading Down 0.5 %

The company has a current ratio of 0.87, a quick ratio of 0.79 and a debt-to-equity ratio of 0.43. The firm has a fifty day simple moving average of $61.95 and a two-hundred day simple moving average of $58.05. The stock has a market cap of $239.89 billion, a PE ratio of 26.33, a PEG ratio of 4.16 and a beta of 0.79.

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Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its quarterly earnings results on Wednesday, February 12th. The network equipment provider reported $0.77 earnings per share for the quarter, missing analysts' consensus estimates 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 expect that Cisco Systems, Inc. will post 3.04 earnings per share for the current fiscal year.

Cisco Systems Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 23rd. Shareholders of record on Thursday, April 3rd will be paid a dividend of $0.41 per share. The ex-dividend date is Thursday, April 3rd. This is an increase from Cisco Systems's previous quarterly dividend of $0.40. This represents a $1.64 annualized dividend and a dividend yield of 2.72%. Cisco Systems's dividend payout ratio (DPR) is 71.62%.

Cisco Systems declared that its Board of Directors has approved a share repurchase program on Wednesday, February 12th that allows the company to repurchase $15.00 billion in outstanding shares. This repurchase authorization allows the network equipment provider to reacquire up to 6% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling

In other Cisco Systems news, CFO Richard Scott Herren sold 19,929 shares of the stock in a transaction on Friday, February 14th. The shares were sold at an average price of $64.41, for a total transaction of $1,283,626.89. Following the completion of the sale, the chief financial officer now owns 335,605 shares of the company's stock, valued at $21,616,318.05. This represents a 5.61 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Thimaya K. Subaiya sold 2,065 shares of the business's stock in a transaction dated 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 $11,604,868.80. The trade was a 1.07 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 66,547 shares of company stock worth $4,275,553 in the last 90 days. 0.01% of the stock is owned by company insiders.

Institutional Trading of Cisco Systems

Several large investors have recently modified their holdings of CSCO. Swedbank AB raised its holdings in shares of Cisco Systems by 0.6% during the third quarter. Swedbank AB now owns 9,029,594 shares of the network equipment provider's stock valued at $480,555,000 after purchasing an additional 52,711 shares during the last quarter. Massachusetts Financial Services Co. MA bought a new position in shares of Cisco Systems in the third quarter worth about $16,798,000. Pacer Advisors Inc. lifted its position in shares of Cisco Systems by 5.8% during the 3rd quarter. Pacer Advisors Inc. now owns 682,132 shares of the network equipment provider's stock valued at $36,303,000 after buying an additional 37,424 shares in the last quarter. Lathrop Investment Management Corp increased its holdings in Cisco Systems by 0.9% in the 3rd quarter. Lathrop Investment Management Corp now owns 214,557 shares of the network equipment provider's stock worth $11,419,000 after acquiring an additional 1,932 shares in the last quarter. Finally, First County Bank CT lifted its holdings in Cisco Systems by 5.1% during the third quarter. First County Bank CT now owns 21,805 shares of the network equipment provider's stock valued at $1,160,000 after purchasing an additional 1,055 shares in the last quarter. 73.33% of the stock is owned by institutional investors.

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.