Stock Buyback Plan Announced by Cisco Systems (CSCO) Board of Directors

Cisco Systems (NASDAQ:CSCO) announced that its Board of Directors has initiated a share buyback plan, which permits the company to repurchase $15.00 billion in outstanding shares on Wednesday, February 13th. This repurchase authorization permits the network equipment provider to buy up to 6.5% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its shares are undervalued.

A number of research analysts have weighed in on CSCO shares. KeyCorp raised their price target on Cisco Systems from $52.00 to $53.00 and gave the company an “overweight” rating in a research note on Thursday, November 15th. JPMorgan Chase & Co. restated a “buy” rating on shares of Cisco Systems in a research note on Thursday, November 15th. Zacks Investment Research downgraded Cisco Systems from a “buy” rating to a “hold” rating in a research note on Friday, October 26th. Nomura downgraded Cisco Systems from a “buy” rating to a “neutral” rating and set a $50.00 price target for the company. in a research note on Friday, December 14th. Finally, Robert W. Baird restated a “buy” rating and issued a $53.00 price target on shares of Cisco Systems in a research note on Tuesday. Nine research analysts have rated the stock with a hold rating, twenty have assigned a buy rating and one has given a strong buy rating to the company. The stock has a consensus rating of “Buy” and an average target price of $51.17.

Shares of NASDAQ CSCO opened at $47.50 on Thursday. The company has a quick ratio of 2.05, a current ratio of 2.11 and a debt-to-equity ratio of 0.42. Cisco Systems has a 12 month low of $40.19 and a 12 month high of $49.47. The company has a market cap of $229.22 billion, a PE ratio of 20.30, a price-to-earnings-growth ratio of 2.76 and a beta of 1.16.

Cisco Systems (NASDAQ:CSCO) last released its quarterly earnings results on Wednesday, February 13th. The network equipment provider reported $0.73 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.72 by $0.01. The business had revenue of $12.45 billion during the quarter, compared to the consensus estimate of $12.43 billion. Cisco Systems had a return on equity of 25.58% and a net margin of 2.52%. The firm’s quarterly revenue was up 4.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.63 EPS. On average, research analysts expect that Cisco Systems will post 2.7 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 24th. Investors of record on Friday, April 5th will be paid a $0.35 dividend. This is an increase from Cisco Systems’s previous quarterly dividend of $0.33. This represents a $1.40 annualized dividend and a yield of 2.95%. Cisco Systems’s payout ratio is 56.41%.

In other Cisco Systems news, EVP Mark D. Chandler sold 4,373 shares of Cisco Systems stock in a transaction on Friday, November 23rd. The stock was sold at an average price of $44.89, for a total value of $196,303.97. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Steven M. West sold 25,000 shares of Cisco Systems stock in a transaction on Wednesday, December 12th. The shares were sold at an average price of $47.98, for a total value of $1,199,500.00. Following the completion of the transaction, the director now directly owns 10,007 shares of the company’s stock, valued at $480,135.86. The disclosure for this sale can be found here. Insiders sold a total of 166,067 shares of company stock valued at $7,804,662 over the last 90 days. 0.03% of the stock is currently owned by corporate insiders.

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About Cisco Systems

Cisco Systems, Inc designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry worldwide. The company offers switching products; routing products that interconnect public and private wireline and mobile networks; data center products; and wireless access points for use in voice, video, and data applications.

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