SAN JOSE, CA—Subaiya Thimaya K., Executive Vice President of Operations at Cisco Systems, Inc. (NASDAQ:CSCO), recently sold 21,230 shares of the company's common stock. The shares were sold at a weighted average price of $57.0674, amounting to a total transaction value of approximately $1.21 million.
The sale was executed on November 20, 2024, under a pre-established Rule 10b5-1 trading plan adopted by Subaiya on March 15, 2024. The shares were sold in multiple transactions, with prices ranging from $56.63 to $57.48.
Following this transaction, Subaiya's direct ownership in Cisco stands at 213,834 shares, which includes 759 dividend equivalents accrued on unvested restricted stock units. Each dividend equivalent is economically equivalent to one share of Cisco common stock.
In other recent news, Cisco Systems, Inc. reported impressive results from the first quarter of fiscal year 2025. The company's revenues reached $13.8 billion, hitting the upper end of their guidance, and non-GAAP earnings per share (EPS) of $0.91, exceeding expectations. This strong performance is attributed to Cisco's focus on artificial intelligence (AI) infrastructure and security, with security orders more than doubling partly due to the integration of Splunk (NASDAQ:SPLK).
Other notable developments include a 20% year-over-year increase in product orders, with enterprise orders up by 33%. Cisco also reported total cash and investments at $18.7 billion, returning $3.6 billion to shareholders. Looking ahead, Cisco anticipates revenue between $55.3 billion and $56.3 billion for FY2025, with non-GAAP EPS expected between $3.60 and $3.66.
Despite a 23% decline in networking revenue and challenges faced by the U.S. federal business, the company remains confident in its strategic direction, especially in AI and networking. The integration of Splunk and partnerships with Nvidia (NASDAQ:NVDA) are expected to strengthen Cisco's market position further.
InvestingPro Insights
As Cisco Systems, Inc. (NASDAQ:CSCO) experiences insider selling activity, it's worth examining the company's current financial position and market performance. According to InvestingPro data, Cisco boasts a substantial market capitalization of $229.37 billion, underlining its position as a major player in the technology sector.
Cisco's stock is currently trading near its 52-week high, with a price that's 96.93% of its peak. This aligns with an InvestingPro Tip noting that the stock is "Trading near 52-week high," suggesting strong investor confidence despite the recent insider sale.
The company's financial health appears robust, with a P/E ratio of 24.76 and a dividend yield of 2.78%. An InvestingPro Tip highlights that Cisco "Has raised its dividend for 14 consecutive years," indicating a commitment to shareholder returns that may offset concerns about insider selling.
Cisco's revenue for the last twelve months stands at $52.98 billion, although there's been a revenue growth decline of 8.72% over the same period. Despite this, the company maintains a strong gross profit margin of 64.92%, demonstrating effective cost management.
For investors seeking more comprehensive analysis, InvestingPro offers additional insights, with 10 more tips available for Cisco Systems. These tips could provide valuable context for understanding the company's long-term prospects and the potential implications of insider transactions.
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