Cisco Stock Price – CSCO Price Today, History, Prediction
Cisco Systems is a significant player in its industry. Because of this leading position, many investors consider Cisco stock a good buy. But the company’s solid financial results, anticipated future growth in key figures, opportunity to capture larger market shares and entrance into new markets also make many take interest in the Cisco stock price. Let’s find out more about it, its history, forecast and more.
Cisco Stock Price Chart Today
Cisco Stock Price History
Cisco Systems stock has been on the market for more than 30 years. Over this time, it registered a significant price appreciation as well as many price swings. The fluctuations in the Cisco stock price today and throughout its history originate from changes in the company's performance or changes in economic conditions.
Cisco Stock Price Historical Trends
Cisco stock price history on the stock exchange starts with its IPO in 1990. Back then, it had a value of $18 per share. The optimistic investor's sentiment was evident from the first day of trading. Indeed, the Cisco stock price soared by more than 20% in a single trading session. The company registered a decade long bull run reaching an All-Time-High price of $80 in March 2000. During the bull run, Cisco stock price appreciated more than 30% in certain months.
After hitting its ATH, the Cisco share price lost more than 80% of its value in the following year. The steep downtrend started in April 2000 and lasted until March 2001. Then, after failing to bounce back, it continued to depreciate. The Cisco closing stock price of $8.6 in November 2002 was its All-Time-Low.
In the following period, Cisco stock price recovered almost 200%. After this, the price registered another period of depreciation and started its sideways movement. CSCO shares fluctuated in a choppy manner for over a decade, within a broad range of $13 to $34, ending with a price consolidation shortly before 2017, when it broke the upper band and moved beyond the resistance level.
Cisco Systems stock price then appreciated by over 70% in under two years. After that, it started another price retracement. The 2019 retracement continued until March 2020, when Cisco stock fell to a low of $32. This meant it lost almost 45% in under 12 months.
Cisco Stock Price Influences
The Cisco historical stock price was influenced by several factors associated with its business activities or its external environment. For instance, the significant price surge until the year 2000 originated from positive performance, after Cisco surpassed earnings estimates and multiyear growth in revenues. However, the company faced a major declines in value coming from a blend of factors. These were, for example, the dot com bubble and supply build-up due to growth-related optimism. The positive movement afterwards was diminished because of the 2008 financial crisis. This negatively affected the overall stock market while causing a decrease in the company's revenues.
Moreover, the company's strategy to move its focus from hardware to a software-based model while entering new high-growth markets positively impacted its stock price in the last decade. Also, its strategy for acquisitions of companies or partnerships is positive for investors. Indeed, these activities create a potential for synergetic effects and the company's growth.
Cisco Stock Price Splits
In its first decade as a publicly traded company, CSCO went through nine stock splits. These occurred each year until 2000, with the exception of 1995. The majority of stock splits were performed with a ratio of 2 for 1 stock. This means that the Cisco stock price was halved. An exception to the split ratio was recorded in 1997 and 1998, when Cisco stock was split at a ratio of 3 for 2.
Five out of the nine stock splits positively affected the Cisco stock price before and after the distribution date. Meanwhile, in four cases, there was a minor negative effect. The highest price at which Cisco performed a split was approximately $144 achieved in 2000. The lowest per share price at which the company split its shares was $48 in 1991.
In 2000, Cisco stock price recorded the highest positive change of nearly 7.8% after the split. On the other hand, the highest negative effect of nearly 3.8% on the Cisco shares price was experienced in the 1993 split.
Some of the primary factors that motivated company officials to execute stock splits are the high degree of investors' confidence and the company's plans to make its stock affordable for every investor. Moreover, the company also wanted to make its per-share price comparable and competitive to other companies in its industry.
Cisco Stock Price Prediction
Experts and analysts constantly evaluate the future of Cisco Systems shares. As such, they provide forecasts about the potential stock price. They assign a buy, hold or sell rating to relevant stocks. A rating for Cisco stock price future is provided by 90 analysts and experts, who publish their opinion in different financial journals and websites. The opinions anticipate bullish movement in Cisco stock in the future. CSCO receives a buy rank from 71 analysts, while 5 analysts categorise the stock as a strong buy. Also, 14 experts state that investors should hold on to their Cisco shares.
According to the Cisco stock price prediction, the company should experience an appreciation in its value with a potential to hit a high price of $74, a price forecasted by over 30 analysts. However, there are certain differences when it comes to the anticipated low price and median target price. Cisco stock price prediction today shows that the company might reach a low value of between $36 and $55. Its anticipated median target price is expected to be anywhere from $51.5 up to $64.
The optimistic forecasts given for the stock price are based on favourable movements in fundamental factors such as company growth, revenues growth, increase in EPS, rise in dividend payments, etc. Changes in these factors also stimulated analysts from reputable institutions like Credit Suisse and J.P. Morgan to raise their ratings and increase their previous price forecasts.
Where Can I Buy CSCO Stock Today?
Investing in Cisco stock is reasonably easy, and all you need to do is open an account with ZFX. ZFX is a licensed broker that gives numerous benefits and trading tools to its clients with an aim to make the trading experience as beneficial as possible for investors. Buying Cisco stock through the ZFX MT4 trading platform will give you access to a vast database of educational resources and academy as well as access to trading tools, market news, market outlook and economic calendar for developed and developing economies.
Aside from companies' shares, investors have access to other assets like indices, commodities, and forex pairs. This enables investors to diversify their trading activities by holding various types of assets in their portfolios.
Investing in the Cisco Stock Price: Tutorial
Buying Cisco stock on the ZFX platform is very easy and straightforward. Traders can invest in Cisco stock through the following process. As mentioned, you will trade Cisco stock through the MT4 platform provided by ZFX.
1 - Register with ZFX
A ZFX account can be registered by going to the "Open an account" section or through the accounts page and the selection of the "Open a Live Trading Account" option.
Hitting the relevant button will take you to a window that requires certain information.
By providing the information and hitting the "Next" button, you have successfully completed the account registration, and you can move to the second step. ZFX will then invite you to download the MT4 platform and display your associated login and password. You will need to access this platform in order to invest in Cisco stocks.
2 - Make your first deposit
You can now deposit funds onto your account. To do so, go to your ZFX dashboard, navigate to the "Deposit" side, and fill in the required details. You can select to make your deposit through a bank transfer or credit card.
3 - Account verification
You’ll then need to verify your account as part of the security measures before buying Cisco stock. The verification is simple, and ZFX will ask you to provide relevant documentation to confirm your identity and bank account. Be prepared to upload a scanned copy of an accepted document: national ID, passport or driver's license. You can verify your bank account with a bank statement or a copy of your bank book.
4 - Invest in Cisco stock at its current price
Trading Cisco stock is executed on the MT4 trading platform, which new and experienced investors alike can easily grasp. The platform offers a wide number of tools that simplifies the trading process. Start by downloading the MT4 version fit for your device.
When you download and install the ZFX MT4 platform, you can log in to your account and buy Cisco stock.
Go to the accounts option, enter your account information and select the ZFX MT4 live server. You can locate the Cisco stock or other assets offered by ZFX on the market watch table in the upper left side of the MT4 Dashboard. Double clicking on the preferred asset will open a window where you can see the live quote, provide the desired transaction volume, stop loss or take profit order and order type. Simply define the relevant details and buy the Cisco stock.
To Buy or Not to Buy Cisco Stock?
Cisco stock receives a buy rank due to different factors related to its future performance, its strategic corporate actions and the entrance into new markets. Let’s go through each factor.
Cisco stock financial performance
Cisco Systems enjoys a positive investment sentiment and bullish expectations because it has the potential to boost its financial performance and achieve a positive movement in crucial fundamental factors. Accordingly, Cisco stock might realise a ROA (return on assets)of 15%, which is higher than the industry average of around 13%.
It is also expected that the company could show positive performance in other key valuation metrics. Hence, analysts forecast a continuous growth in revenues, alongside dividend payout and dividend yield growth. Also, we can expect EBITDA and cash flow levels to rise to new highs with a major increase in the free cash flow.
Cisco stock hidden value
Cisco’s strategic moves to shift away from its core business activities, associated with the sale of networking switches and routers might offer hidden value to investors. Indeed, the strengthening of its subscription-based software and services business might hold the potential to further increase company business activities and increase its market share.
Accordingly, the future of Cisco stock price is highly dependent on the cloud computing infrastructure and corporate and telecommunication networks. Cisco Systems has shown positive results in these new markets, and it should achieve even higher growth, considering that many expect the size of these markets to expand.
Cisco Systems stock strategic expansion
To maintain its competitors’ pace and gain a competitive advantage, Cisco defines a strategy to achieve swift growth in its business activities. Its strategic focus to enter new and high growth potential markets through acquisitions of existing businesses gives the company an opportunity to quickly become a major player in its focus areas.
The company's entrance into new markets is especially promising with the new technological developments and changes in customer preferences under the influence of new technological innovation. Moreover, the company is also a good buy because it has successfully managed to cope with and overcome the cyclical and macro challenges that negatively affected its business activities.
Things to Know about Cisco Stock Price before You Invest
- Cisco’s shift to new markets means that trading signals based on past fluctuations in Cisco stock price may not be reliable. The reason is that this expansion of business activities isn’t fully reflected in the past value. Consequently, investors should integrate news and announcements relevant to Cisco Systems stock price into their investing strategies instead of past performance
- Traders could start by looking and the Cisco financial and stock information. You can find this on the corporate website, in the investors' section. Investors should look for information related to dividend payouts, stock splits, acquisitions, changes in business activities, growth estimates, earnings releases, etc.
- Furthermore, announcements related to the demand for Cisco products and services are highly important. This could indicate potential profit levels and the company's ability to meet its growth expectations. Moreover, Cisco has performed stock buybacks on multiple occasions. This had implications for its stock price. For example, when the company announced a $25 billion worth of stock buyback plan, it caused a bullish movement of 6% in Cisco stock price.
Bottom Line: What Can We Expect from Cisco Stock Price?
After considering different aspects of Cisco stock price, we can conclude that it could represent a solid investment opportunity. The company has experienced positive movement in some of the key assessment metrics. What's more, experts anticipate that its positive performance could continue. It also undertakes strategic moves that should enable swift growth in the future and expand the company's business activities. The company also follows developments and changes in customers preferences, in an effort to adapt its operations and augment the revenue potentials.
If you feel CSCO could be a good addition to your portfolio, you can invest in the share today through ZFX. This broker offers many benefits to its customers as we have outlined in this article. You can follow the tutorial we provided earlier to invest in Cisco stocks in a few easy steps.