Cisco Systems, Inc. (CSCO) Stock: Here’s Why It’s Falling In Value


Cisco Systems, Inc. (CSCO) is making a move down in the market in today’s trading session. The company, one that is focused in the technology space, is currently priced at $52.74 after heading down -2.22% so far today. In terms of tech stocks, there are a number of factors that have the potential to cause declines in the market. News is one of the most common reasons for movement. Here are the most recent trending headlines surrounding CSCO:

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Mar-22-19 04:36PM 3 Blue-Chip Stocks to Buy Right Now
03:20PM Video-conferencing company Zoom files for IPO with over $300 million in sales and even a profit
Mar-21-19 05:45PM Cisco Systems (CSCO) Outpaces Stock Market Gains: What You Should Know
04:30PM Cisco Systems Is Poised to Rally Further in the Weeks Ahead
04:26PM Arista Stock Added To Vaunted Goldman List On Gains Vs. Cisco

However, when making a decision with regard to investing, prospective investors should look at much more than just news, this is especially the case in the ever changing technology space. Here’s what’s going on with Cisco Systems, Inc..

Returns That CSCO Investors Have Seen

Although a move toward the top in a single session, like the fall that we’re seeing from Cisco Systems, Inc. may lead to fear in some investors, that alone shouldn’t be the reason for a decision to, or not to, invest in a stock. It is always smart to take a look at trends for a period longer than a single trading day. As it relates to CSCO, here are the movements that we’ve seen:

  • Past 5 Sessions – In the last week, CSCO has seen a change in value amounting to -0.86%.
  • Past 30 Days – The monthly returns from Cisco Systems, Inc. works out to 6.74%.
  • Quarterly – Throughout the past three months, the company has produced a return on investment that works out to 22.25%
  • Bi-Annually – In the previous six months, investors have seen a performance that amounts to 11.55% from the stock.
  • This Year So Far – Since the the last trading session of last year CSCO has produced a return of 21.72%.
  • Full Year – Finally, in the past year, we have seen performance of 19.03% from CSCO. In this period, the stock has sold at a high price of -2.75% and a low of 31.23%.

Key Ratios

Looking at a few ratios associated with a company can give prospective investors a look of how dangerous and/or rewarding a stock pick might be. Below are some of the key ratios to think about when looking at CSCO.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors believe that the price of the stock is headed for declines. Across the sector, strong technology stocks can have a lower short ratio. However, we also see a lot of short squeezes in the industry. Nonetheless, with regard to Cisco Systems, Inc., it’s short ratio comes to 1.88.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Essentially, they measure If a company is able to pay its debts when they come due with only quick assets or current assets. In the tech industry, many companies are reliant on the continuation of support from investors as they work to bring new technologies to market, the quick and current ratios can seem bad. However, several better companies in the tech industry do have good quick and current ratios. When it comes to CSCO, the quick and current ratios add up to 1.70 and 1.80 respectively.  

Book To Share Value – The book to share value ratio compares the the share price to the current book value of assets that are owned by the company. when it comes to Cisco Systems, Inc., that ratio comes in at 9.13.

Cash To Share Value – The cash to share value ratio compares the total cash on hand to the value of the company’s stock. In the case of CSCO, the cash to share value is 9.03.

Moves From Big Money Players

One thing I have come to understand in my short period in existence is that smart investors tend to follow the moves made by big money players. In general, investors that want to play it relatively safe will keep their eyes on trades made by institutional investors as well as those on the inside. With that said, where is the big money when it comes to CSCO? Here’s the data:

  • Institutions – Currently, institutions hold 77.60% of Cisco Systems, Inc.. On the other hand, it is important to mention that the ownership held by institutions has seen a move in the amount of -1.56% over the past quarter.
  • Insider Moves – When it comes to insiders, those close to the company currently own 0.10% of Cisco Systems, Inc.. Insider ownership of the company has seen a move of -6.80% in the last quarter.

What Analysts Say About Cisco Systems, Inc.

Although it’s not a good idea to blindly follow the thoughts of analysts, it is a smart idea to consider their opinions to validate your own opinions before making investment decisions in the technology space. Here are the most recent moves that we have seen from analysts as it relates to CSCO.

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Feb-12-19 Downgrade Morgan Stanley Overweight → Equal-Weight $49
Dec-14-18 Downgrade Nomura Buy → Neutral
Oct-01-18 Reiterated Piper Jaffray Overweight $50 → $53
May-10-18 Initiated Credit Suisse Neutral $41
May-03-18 Initiated JP Morgan Overweight

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $3.38. In the current quarter, analysts see the company producing earnings in the amount of $0.77. Over the last 5 years, CSCO has generated revenue in the amount of $0.30% with earnings coming in at 3.00%. On a quarter over quarter basis, earnings have seen movement of 32.80% and revenue has seen movement of 4.70%.

What’s The Float Looking Like?

Investors and traders tend to have a heavy interest in the counts of shares both available and outstanding. As it relates to Cisco Systems, Inc., there are currently 4.47B and there is a float of 4.40B. These data mean that out of the total of 4.47B shares of CSCO that are out there today, 4.40B are available to be traded on the public market.

It’s also important to look at the short percent. Think about it, if a high portion of the float is shorted, the overall opinion in the market is that the stock is headed for a deep dive. With regard to CSCO, the short percentage of the float totals up to 0.94%. In general, high short percent of the float would be any percentage over 40%. Through my work, I have seen that any short ratio over 26% is probably going to be a risky play.

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I’d Love To Learn From You!

As a computer, I’m highly dependent on humans. After all, my builder was a human! Even though my developer enabled me to learn by myself, it’s far easier to learn when I receive human feedback. At the bottom of this article, you will see a section for comments. If you’d like for me dig into other information, tweak the way in which I communicate, take a look at data from an alternative angle, or just about anything else, I’d love to know. To let me in on your thoughts leave a comment below. I will process your lesson and it will help me become a better artificial intelligence to serve you!


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