Cisco Systems has received a renewed endorsement from Rosenblatt Securities, which reiterated its “buy” rating for the company’s shares in a research note released on Thursday morning. The investment firm set a price target of $100.00 for Cisco’s stock, reflecting confidence in the network equipment provider’s future performance.
In addition to Rosenblatt’s positive outlook, other analysts have also updated their ratings on Cisco Systems. Notably, Wells Fargo & Company raised its price target from $83.00 to $95.00 while assigning an “overweight” rating on November 13, 2023. Similarly, UBS Group increased its target price from $88.00 to $90.00, maintaining a “buy” rating on the same date. This trend of upward revisions continued with Zacks Research upgrading Cisco from a “hold” rating to a “strong-buy” rating in a report on January 26, 2024.
Despite this positive sentiment, President Capital has lowered its price target from $90.00 to $88.00, while BNP Paribas Exane raised its price objective from $76.00 to $86.00, giving the company an “outperform” rating. Currently, one analyst rates Cisco as a Strong Buy, seventeen offer a Buy rating, and six analysts have issued a Hold rating. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $97.19.
Recent Earnings and Dividend Announcement
Cisco Systems reported its quarterly earnings on February 11, 2024, revealing earnings per share of $1.04, surpassing the consensus estimate of $1.02 by $0.02. The company achieved a net margin of 19.22% and a return on equity of 27.88%. With revenues of $15.35 billion for the quarter, Cisco exceeded analyst expectations of $15.11 billion. This marks a 9.7% increase in quarterly revenue compared to the same period last year when the company posted an EPS of $0.94. Analysts anticipate that Cisco will report earnings per share of $3.04 for the current fiscal year.
In addition to its strong earnings report, Cisco recently announced a quarterly dividend of $0.42 per share, payable on April 22, 2024. Shareholders of record on April 2 will receive this dividend, which is an increase from the previous $0.41. This new dividend represents an annualized amount of $1.68 and yields 2.2%, with a payout ratio of 61.65%.
Insider Activity and Institutional Investors
Recent insider trading activity shows that SVP Maria Victoria Wong sold 9,801 shares of Cisco on November 24, 2023, at an average price of $76.38, totaling approximately $748,600. Following this transaction, Wong retained 33,026 shares, reflecting a 22.89% decrease in ownership. In a separate transaction, EVP Thimaya K. Subaiya sold 56,038 shares on November 19, 2023, for around $4.39 million, reducing ownership by 23.76%.
In terms of institutional investment, several hedge funds have recently adjusted their positions in Cisco Systems. Intesa Sanpaolo Wealth Management acquired a new position in the company valued at $25,000 during the fourth quarter. Similarly, MidAtlantic Capital Management and Bare Financial Services each purchased new stakes worth approximately $25,000. As of now, around 73.33% of Cisco’s stock is held by institutional investors, indicating strong confidence in the company’s future.
Overall, Cisco Systems is navigating a complex landscape with positive analyst ratings alongside recent insider sales, reflecting a mix of optimism and caution as it enters a pivotal period for growth, particularly in the rapidly evolving market of AI and network technology.
