The security is brushing off four price-target hikes
Cisco Systems Inc (NASDAQ:CSCO) beat fiscal third-quarter earnings and revenue expectations, and also issued strong 2024 and fourth-quarter revenue forecasts. The tech giant attributed the upbeat results to higher enterprise spending, as well as easing supply chain constraints. Nevertheless, CSCO reversed its premarket gains, last seen down 2.2% to trade at $48.56.
The security is also brushing off three price-target hikes, including Oppenheimer's adjustment to $58 from $54. The majority of analysts are still skeptical, with 17 of 24 calling CSCO a "hold."
In the options pits, 43,000 calls and 35,000 puts have already crossed the tape, which is nine times the volume typically seen at this point. The May 50 call is the most popular contract, but positions are currently opening at the 48.50 put also in that series.
It looks like Cisco Systems stock is once again running into resistance at the $50 region, which has been capping rallies since its January bear gap. The 140-day moving average has also been acting as pressure for most of 2024, with the shares trading back below it today after yesterday's close above it. In the last nine months, CSCO shed roughly 11%.