Cisco Systems Shares Rise 1.5% Amid Price Target Increases

Cisco Systems, Inc. (NASDAQ:CSCO) experienced a notable increase in its stock price, rising by 1.5% during mid-day trading on November 13, 2023. The stock reached a high of $83.31 before settling at $82.36. This uptick follows a significant trading volume of 24,161,569 shares, reflecting a 15% increase compared to its average session volume of 21,081,904 shares. The previous day’s closing price stood at $81.16.

Analysts have recently expressed increased confidence in Cisco’s prospects, with several brokerages revising their price targets. KeyCorp raised its target from $77.00 to $87.00, assigning an “overweight” rating. Similarly, Argus increased its price target from $80.00 to $100.00, while Rosenblatt Securities also lifted its target from $87.00 to $100.00, maintaining a “buy” rating. In contrast, President Capital moderated its target from $90.00 to $88.00. Melius Research echoed the bullish sentiment by raising its target from $84.00 to $100.00.

As it stands, one analyst has rated Cisco’s stock as a Strong Buy, while sixteen have given it a Buy rating, and eight have assigned a Hold rating. According to data from MarketBeat, the consensus rating for Cisco Systems is classified as a “Moderate Buy,” with an average price target of $90.38.

Quarterly Earnings and Dividend Announcement

Cisco Systems released its quarterly earnings report on November 12, 2023. The company reported earnings per share of $1.00, surpassing the consensus estimate of $0.98 by $0.02. The firm’s revenue reached $14.88 billion, exceeding analyst expectations of $14.77 billion. Notably, Cisco achieved a return on equity of 27.29% and a net margin of 18.38%. Year-over-year, the revenue increased by 7.5%. In the same quarter the previous year, earnings per share stood at $0.91.

Looking ahead, Cisco has set its fiscal year 2026 guidance at $4.080-4.140 EPS and forecasts its second quarter of 2026 EPS guidance at $1.010-1.030. Analysts predict that Cisco Systems will achieve earnings of $3.04 per share for the current fiscal year.

Additionally, Cisco announced a quarterly dividend of $0.41 per share, which was paid on January 21, 2024. Stockholders on record as of January 2, 2024 received this dividend, translating to an annualized dividend of $1.64 and a yield of 2.0%. The ex-dividend date was also set for January 2, 2024, with a current dividend payout ratio of 61.65%.

Insider Trading and Institutional Investments

In recent insider trading activity, Jeetendra I. Patel, an insider, sold 163,896 shares on November 14, 2023. The shares were sold at an average price of $77.86, totaling approximately $12,760,942.56. Post-sale, Patel retained 281,108 shares valued at around $21,887,068.88, marking a 36.83% decrease in their position. This transaction was reported in a filing with the Securities and Exchange Commission (SEC).

CEO Charles Robbins also participated in stock sales, offloading 281,860 shares on November 17, 2023, at an average price of $78.35, amounting to $22,083,731.00. After this sale, Robbins owned 820,887 shares, valued at approximately $64,316,496.45, which reflects a 25.56% reduction in his holdings. The SEC filing provides further details regarding these transactions.

Over the past three months, insiders have sold a total of 1,044,865 shares worth approximately $81,397,635. Notably, corporate insiders hold just 0.01% of Cisco’s stock.

Institutional investors have also been active regarding Cisco shares. During the second quarter, Bare Financial Services Inc. increased its holdings by 531%, acquiring an additional 308 shares to reach 366 shares valued at $25,000. Other notable transactions include Marquette Asset Management LLC, which purchased a new stake valued at $25,000, and Financial Connections Group Inc., which raised its position by 89.4% during the same period.

Currently, institutional investors and hedge funds collectively own 73.33% of Cisco’s stock.

Cisco Systems continues to be a key player in the global technology landscape, focusing on networking hardware, software, and telecommunications equipment. As the company adapts to the evolving market, its emphasis on software-defined networking, cybersecurity, and cloud infrastructure positions it well for future growth.