TLDR
- CSCO reached a record intraday peak of $97.02 on Friday, settling at $96.57 for a 4.8% daily gain
- Upcoming earnings announcement could trigger a 5.8% move based on options market pricing
- UBS maintains Buy rating, forecasting revenue toward the upper end of guidance at $15.4B-$15.6B
- Evercore ISI boosted its target to $110, pointing to anticipated AI revenue expansion
- The company increased its quarterly dividend to $0.42 and delivered 9.7% year-over-year revenue growth last quarter
Cisco Systems (CSCO) jumped 4.8% during Friday’s trading session, reaching an intraday peak of $97.02 before settling at $96.57. This marks a fresh all-time high for the networking giant, surpassing its previous closing record of $92.16.
Trading activity was notably robust. Approximately 24.5 million shares traded hands throughout the day, representing about 10% more than the typical daily volume of 22.2 million.
The rally occurred as the company prepares to report quarterly results. Based on options market activity, investors are anticipating a potential swing of approximately 5.8% following the earnings announcement.
Cisco’s previous quarterly performance delivered strong momentum for shareholders. The technology firm reported earnings of $1.04 per share, surpassing the Wall Street consensus of $1.02. Revenue totaled $15.35 billion, marking a 9.7% year-over-year increase and exceeding analyst projections of $15.11 billion.
Shares have now appreciated roughly 58% over the trailing twelve months. The stock’s 50-day moving average stands at $82.32, while the 200-day moving average rests at $78.56 — both considerably beneath current trading levels.
Wall Street’s Perspective
UBS has reaffirmed its Buy recommendation heading into the earnings report, expecting revenue to land at the upper portion of management’s guidance range between $15.4B and $15.6B. The investment bank also noted robust data center spending trends as a favorable catalyst.
Evercore ISI took a more aggressive stance, elevating its price objective to $110 while maintaining an Outperform rating. The firm emphasized anticipated expansion in artificial intelligence-related revenue as a crucial growth driver in the years ahead.
The broader analyst community maintains a constructive outlook. Among firms monitored by MarketBeat, three rate the stock as Strong Buy, fourteen assign Buy ratings, and eight recommend Hold.
The average price target across analysts sits at $90.29 — now trailing Friday’s closing price, which could prompt upward revisions in the near term.
Wall Street Zen did downgrade to Hold from Buy in March, indicating some divergence in viewpoints.
Dividend Increase and Strategic Initiatives
Cisco recently enhanced its quarterly dividend to $0.42 per share from $0.41. The distribution was paid on April 22nd. This translates to an annualized dividend of $1.68 and a current yield of approximately 1.7%.
Beyond earnings preparations, Cisco has several strategic initiatives underway. The company introduced a research prototype known as the Universal Quantum Switch, designed to enhance quantum network information routing capabilities.
The networking leader is also reportedly pursuing an acquisition of Astrix Security, a privately-held Israeli cybersecurity company. UBS estimates the transaction value could range from $250 million to $350 million.
On the institutional ownership front, PNC Financial Services expanded its stake during Q1, acquiring an additional 237,187 shares to reach a total position exceeding 6.6 million. DJE Kapital made an even more substantial commitment, adding 655,240 shares during the same timeframe. Institutional investors collectively control 73.33% of outstanding shares.
Cisco’s market capitalization currently stands at $381.44 billion, with a price-to-earnings ratio of 33.88 and a beta of 0.92.
Wall Street forecasts full-year earnings of $3.42 per share for the current fiscal period.
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