How to buy Cisco shares | $38.28
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Cisco Systems, Inc is a communication equipment business with stocks listed in the US. Cisco shares (CSCO) are listed on the NASDAQ and all prices are listed in US Dollars. Its last market close was US$38.28 – a decrease of 5.18% over the previous week.
How to buy shares in Cisco
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Cisco. Find the share by name or ticker symbol: CSCO. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Cisco reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$38.28, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Cisco, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Cisco. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- Cisco key stats
- Compare share trading platforms
- Is Cisco stock a buy or sell?
- Cisco performance over time
- Can I short Cisco shares?
- Is Cisco suitable for ethical investing?
- Are Cisco shares over-valued?
- Cisco's financials
- How volatile are Cisco shares?
- Does Cisco pay a dividend?
- Have Cisco shares ever split?
- Other common questions
How has coronavirus impacted Cisco's share price?
Since the stock market crash in March caused by coronavirus, Cisco's share price has had significant negative movement.
Its last market close was US$38.28, which is 17.31% down on its pre-crash value of US$46.295 and 18.15% up on the lowest point reached during the March crash when the shares fell as low as US$32.4001.
If you had bought US$1,000 worth of Cisco shares at the start of February 2020, those shares would have been worth US$743.55 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth US$822.64.
Cisco share priceUse our graph to track the performance of CSCO stocks over time.
Cisco shares at a glance
|Latest market close||USD$38.28|
|52-week range||USD$32.4001 - USD$50.28|
|50-day moving average||USD$42.8403|
|200-day moving average||USD$43.1498|
|Dividend yield||USD$1.44 (3.57%)|
|Earnings per share (TTM)||USD$2.64|
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Is it a good time to buy Cisco stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Cisco price performance over time
|1 week (2020-09-14)||-5.18%|
|1 month (2020-08-24)||-9.25%|
|3 months (2020-06-24)||-14.46%|
|6 months (2020-03-24)||-0.83%|
|1 year (2019-09-20)||-22.82%|
|2 years (2018-09-21)||-21.17%|
|3 years (2017-09-21)||17.06%|
|5 years (2015-09-21)||49.88%|
Is Cisco under- or over-valued?
Valuing Cisco stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Cisco's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Cisco's P/E ratio
Cisco's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 15x. In other words, Cisco shares trade at around 15x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
Cisco's PEG ratio
Cisco's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.6351. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Cisco's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Cisco's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$15.8 billion (£12.4 billion).
The EBITDA is a measure of a Cisco's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||US$49.3 billion|
|Operating margin TTM||28.64%|
|Gross profit TTM||US$31.7 billion|
|Return on assets TTM||9.16%|
|Return on equity TTM||31.37%|
|Market capitalisation||US$168.5 billion|
TTM: trailing 12 months
Shorting Cisco shares
There are currently 39.0 million Cisco shares held short by investors – that's known as Cisco's "short interest". This figure is 13.4% up from 34.4 million last month.
There are a few different ways that this level of interest in shorting Cisco shares can be evaluated.
Cisco's "short interest ratio" (SIR)
Cisco's "short interest ratio" (SIR) is the quantity of Cisco shares currently shorted divided by the average quantity of Cisco shares traded daily (recently around 28.3 million). Cisco's SIR currently stands at 1.38. In other words for every 100,000 Cisco shares traded daily on the market, roughly 1380 shares are currently held short.
However Cisco's short interest can also be evaluated against the total number of Cisco shares, or, against the total number of tradable Cisco shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Cisco's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Cisco shares in existence, roughly 10 shares are currently held short) or 0.0074% of the tradable shares (for every 100,000 tradable Cisco shares, roughly 7 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Cisco.
Find out more about how you can short Cisco stock.
Cisco's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Cisco.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Cisco's total ESG risk score
Total ESG risk: 11.08
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Cisco's overall score of 11.08 (as at 07/31/2020) is excellent – landing it in it in the 4th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Cisco is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Cisco's environmental score
Environmental score: 1.54/100
Cisco's environmental score of 1.54 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Cisco is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Cisco's social score
Social score: 4.68/100
Cisco's social score of 4.68 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Cisco is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Cisco's governance score
Governance score: 5.37/100
Cisco's governance score puts it squarely in the 3rd percentile of companies rated in the same sector. That could suggest that Cisco is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Cisco's controversy score
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Cisco scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Cisco has, for the most part, managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||11.08|
|Total ESG percentile||4.12|
|Environmental score percentile||3|
|Social score percentile||3|
|Governance score percentile||3|
|Level of controversy||2|
Cisco share dividends
Dividend payout ratio: 53.79% of net profits
Recently Cisco has paid out, on average, around 53.79% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.57% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Cisco shareholders could enjoy a 3.57% return on their shares, in the form of dividend payments. In Cisco's case, that would currently equate to about $1.44 per share.
Cisco's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
Cisco's most recent dividend payout was on 20 October 2020. The latest dividend was paid out to all shareholders who bought their shares by 30 September 2020 (the "ex-dividend date").
Have Cisco's shares ever split?
Cisco's shares were split on a 2:1 basis on 22 March 2000. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Cisco shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Cisco shares which in turn could have impacted Cisco's share price.
Cisco share price volatility
Over the last 12 months, Cisco's shares have ranged in value from as little as US$32.4001 up to US$50.28. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Cisco's is 0.82. This would suggest that Cisco's shares are less volatile than average (for this exchange).
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. It provides infrastructure platforms, including networking technologies of switching, routing, wireless, and data center products that are designed to work together to deliver networking capabilities, and transport and/or store data. The company also offers collaboration products comprising unified communications, Cisco TelePresence, and conferencing, as well as the Internet of Things and analytics software. In addition, it provides security products, such as network security, cloud and email security, identity and access management, advanced threat protection, and unified threat management products; and cloud and system management products. Further, the company offers a range of service and support options for its customers, including technical support and advanced services. It serves businesses of various sizes, public institutions, governments, and service providers. The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors. Cisco Systems, Inc. was founded in 1984 and is headquartered in San Jose, California.
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