In a recent filing with the Securities and Exchange Commission, Maria Victoria Wong, Senior Vice President and Chief Accounting Officer of Cisco Systems, Inc. (NASDAQ:CSCO), has sold a total of 3,379 shares of the company’s stock. The transaction, which took place on August 28, 2024, was executed at a price of $50.36 per share, for a total sale of $170,166.
The sale was made pursuant to a trading plan regulated under Rule 10b5-1, which allows company insiders to set up a trading plan to sell the shares they own in a predetermined manner. This plan was adopted by Wong on February 22, 2024, to ensure that the sale complies with insider trading laws.
After the transaction, Wong’s direct ownership in Cisco Systems was 47,182 shares. Direct ownership nature, indicating that the shares are personally owned by the executive.
Cisco Systems, known for computer communication equipment, continues to be a significant player in the technology sector. Insider transactions such as these are closely watched by investors for insight into executive confidence and company performance. However, these kinds of sales are often part of an executive’s personal financial planning and may not reflect a change in the company’s outlook.
Investors and stakeholders in Cisco Systems will continue to monitor insider transactions for potential signals about the company’s future.
In other recent news, Cisco Systems Inc (NASDAQ: has seen a series of notable developments. HSBC upgraded Cisco stock from Hold to Buy, predicting a compound annual growth rate of 11.6% in the company’s non-GAAP earnings from 2024 to 2027. The company expects Cisco’s non-GAAP EPS to reach $3.86 in fiscal 2025, exceeding both of the company’s guidance and consensus estimates.
Cisco’s fourth fiscal quarter of 2024 was a success, with revenues up to $13.6 billion and a 20-year high gross margin of 67.5%. The company also reported a 14% expansion in product orders, driven by advances in the artificial intelligence, security, and web-scaling sectors. In addition, Cisco announced restructuring plans that could affect 7% of its global workforce, focusing on the AI, cloud, and cybersecurity sectors.
Analyst firms such as KeyBanc, BofA Securities, Piper Sandler, and Rosenblatt have maintained their ratings on Cisco stock. The company acknowledged positive order and development levels in the security and web-scaling sectors, and also acknowledged Cisco’s strategic shift to AI and cloud computing. Cisco’s projections for fiscal year 2025 are in line with Wall Street’s expectations for revenue and earnings per share, despite year-over-year declines. Cisco expects Q1 revenue between $13.65 billion and $13.85 billion, and fiscal year 2025 revenue is expected to be between $55 billion and $56.2 billion.
InvestingPro Insights
In the midst of recent insider transactions at Cisco Systems, Inc. (NASDAQ:CSCO), investors can find additional context on company performance and market standing through InvestingPro metrics and tips. Notably, Cisco has raised its dividend for 14 consecutive years, signaling its commitment to returning value to shareholders. This consistency is reflected in the company’s stable dividend yield of 3.21% as of the last recorded date, which may appeal to income-focused investors.
With 15 analysts revising earnings upward for the upcoming period, there appears to be positive sentiment about Cisco’s future financial performance. This optimism is supported by the company’s profits over the past twelve months, a testament to operational efficiency in the competitive Communications Equipment industry. Moreover, Cisco operates with a moderate level of debt, which can provide some assurance to investors concerned about financial stability.
From a valuation perspective, Cisco’s adjusted price-to-earnings (P/E) ratio stands at 18.37, reflecting the market’s assessment of potential earnings relative to its share price. The company’s gross profit margin remained strong at 64.8%, highlighting its ability to maintain profitability despite revenue fluctuations.
For investors looking to dive deeper into Cisco’s financial health and market position, InvestingPro offers comprehensive tools and additional tips. There are currently 6 more InvestingPro Tips available for Cisco Systems, which can be accessed by visiting: https://www.investing.com/pro/CSCO.
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