Q2 STOCKS TO BUY

Options Traders, Analysts Target Cisco Stock After Earnings

Cisco's options pits are seeing four times the typical intraday activity

Deputy Editor
Aug 19, 2021 at 10:23 AM
facebook X logo linkedin


The shares of Cisco Systems, Inc. (NASDAQ:CSCO) are up 0.7% at $55.54 this morning, after the tech name reporting fiscal fourth-quarter earnings of 84 cents per share -- just above expectations of 80 cents -- and a revenue win. However, supply chain issues continue to hinder the company, leading Cisco to issue a current-quarter profit forecast that failed to meet Wall Street's estimates.

Drilling down today's options activity, 25,000 calls and 11,000 puts have already crossed the tape, which is four times the amount that's typically seen at this point. The two most popular options are the weekly 8/20 55.50- and 56-strike calls, indicating these traders see plenty of upside for Cisco stock by the time these contracts expire tomorrow.

Analysts, meanwhile, are optimistic toward Cisco stock following the event. In fact, seven have already responded with price-target hikes. The largest bull note came from Credit Suisse, with the firm raising its price target to $56 from $46, while Jefferies and Evercore ISI each chimed in with a raise up to $63. 

Today's positive price action may come as a surprise, as Cisco stock has historically underperformed following earnings. The 80-day moving average, which CSCO hasn't closed below since November, caught multiple pullback's over the year to help the security carve out a 24.3% year-to-date lead. In addition, the stock is poised to snap a three-day losing streak.

 

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter