Cisco Systems Inc. (NASDAQ: CSCO) stock fell -2.33% on Friday to $41.59 against a previous-day closing price of $42.58. With 21.27 million shares changed hands, the volume of the stock remained heavier than its average volume of 19.22 million shares. During the session, the Communication Equipment company that operates in wider Technology sector, reached to the highest price of $42.87 whereas the lowest price it dropped to was $41.57. The 52-week range on CSCO shows that it touched its highest point at $64.29 and its lowest point at $40.82 during that stretch. It currently has a 1-year price target of $55.00. With its current market cap of 170.85 billion, CSCO has annualized dividend of $1.52 while the current yield stands at 3.65%. Beta for the stock currently stands at 0.94.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CSCO was down-trending over the past week, with a drop of -5.39%, but this was down by -12.83% over a month. Three-month performance dropped to -4.54% while six-month performance fell -25.96%. The stock lost -24.74% in the past year, while it has lost -34.37% so far this year. A look at the trailing 12-month EPS for CSCO yields 2.82 with Next year EPS estimates of 3.80. For the next quarter, that number is 0.84. This implies an EPS growth rate of -5.20% for this year and 7.76% for next year. EPS is expected to grow by 6.69% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 3.40%.
Float and Shares Shorts:
At present, 4.15 billion CSCO shares are outstanding with a float of 4.11 billion shares on hand for trading. On Aug 30, 2022, short shares totaled 33.87 million, which was 0.82% higher than short shares on Jul 28, 2022. In addition to Mr. Charles H. Robbins as the firm’s Chairman & CEO, Mr. Richard Scott Herren serves as its Exec. VP & CFO.
Through their ownership of 75.21% of CSCO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 41.23% of CSCO, in contrast to 33.48% held by mutual funds. Shares owned by individuals account for 1.76%. As the largest shareholder in CSCO with 8.57% of the stake, The Vanguard Group, Inc. holds 354,918,506 shares worth 354,918,506. A second-largest stockholder of CSCO, BlackRock Fund Advisors, holds 222,778,506 shares, controlling over 5.38% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in CSCO, holding 182,861,764 shares or 4.42% stake. With a 2.67% stake in CSCO, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 110,338,138 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.24% of CSCO stock, is the second-largest Mutual Fund holder. It holds 92,699,867 shares valued at 4.15 billion. Invesco QQQ Trust holds 1.44% of the stake in CSCO, owning 59,633,504 shares worth 2.67 billion.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jul 29, 2022, CSCO reported revenue of $12.84B and operating income of $3.61B. The EBITDA in the recently reported quarter was $4.22B and diluted EPS was $0.73.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CSCO since 29 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 16 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CSCO analysts setting a high price target of $65.00 and a low target of $44.00, the average target price over the next 12 months is $53.67. Based on these targets, CSCO could surge 56.29% to reach the target high and rise by 5.79% to reach the target low. Reaching the average price target will result in a growth of 29.05% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CSCO will report FY 2023 earnings on 08/16/2023. Analysts have provided yearly estimates in a range of $3.59 being high and $3.48 being low. For CSCO, this leads to a yearly average estimate of $3.53. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Cisco Systems Inc. surprised analysts by $0.01 when it reported $0.83 EPS against a consensus estimate of $0.82. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.85 and the low estimate is $0.83. The average estimate for the next quarter is thus $0.84.
Dividends & Yield:
In terms of dividends, CSCO has a current ratio of $1.52, which is $1.52 over the trailing 12-months, while a dividend of $1.36 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and CSCO currently yields $3.61. In the past year, CSCO’s dividend yield has been $3.61, but when looking at the stock over the past five years, its yield has been $2.92. Accordingly, CSCO has a current buyback yield of $4.52. This was $4.52 for the TTM, and it was $4.79 for the past five years.
Summary of Insider Activity:
Insiders traded CSCO stock several times over the past three months with 0 Buys and 9 Sells. In these transactions, 0 shares were bought while 66,767 shares were sold. The number of buy transactions has increased to 25 while that of sell transactions has risen to 48 over the past year. The total number of shares bought during that period was 639,532 while 722,477 shares were sold.