Networking giant Cisco Systems, Inc.(NASDAQ:CSCO)’s shares increased 1.9% in previous 3 months which is not an attractive sign for its shares, so quest for purchases while struggling with its most awful stretch of sales growth is making takeover contenders out of Citrix Systems (NASDAQ:CTXS), NetApp (NASDAQ:NTAP) and Rackspace Hosting (NYSE:RAX).
John Chambers, CEO of Cisco recently articulated that Cisco stock price plunged more than 42% since November 2007 has vanished too long lacking a major acquisition and failed to invest sufficient money in firm it purchased.
According to data compiled by the Bloomberg, Cisco bought NDS Group Ltd. for around $5 billion that is a third-largest deal before four months.
JMP Securities’ analyst, Erik Suppiger said in an interview that Cisco is trying to identify market prospect and going in some different directions. That’s what he think it is the urgency.
A spokeswoman of Cisco, Karen Tillman, refused to comment on the firm’s takeover plans.
On the other side, Bloomberg reported that Cisco (NYSE:CSCO) plans to declared it is selling its home wireless router-maker Linksys.
Bloomberg reported that expect is that TV set makers may be interested in purchasing the company. Therefore, Cisco may tap the Barclays, financial services firm to help it find a Linksys buyer.
Last Session Performance; Cisco Systems, Inc.(NASDAQ:CSCO) traded at $19.86 by slightly up 0.61% or 0.12 cent with traded volume of 40.80 million lower than the average volume of 43.47 million.
Stocks Volatility: The stock price volatility is important indicator for stock market investor, weekly volatility was 1.75%, and month’s volatility remained 1.71%. While the stock price of CSCO is moving up from its 20 days moving average with +4.80% and isolated positively from 50 days moving average with 8.74%.
Cisco Systems, Inc.(NASDAQ:CSCO) price to earnings ratio was 12.81% as compared to other stocks are Finisar Corporation (NASDAQ:FNSR) with negative price to earnings ratio of 71.33%, Riverbed Technology, Inc. (NASDAQ:RVBD) with P/E ratio of 42.29 and Juniper Networks, Inc. (NYSE:JNPR) has negative P/E ratio of 55.97 with 10.10 billion of market capitalization.