Cisco (CSCO, $47.09) Shares Soar Following Luxtera Bid Report
Shares of the American multinational technology conglomerate Cisco Systems Inc. soared ~1.5% on Tuesday, after people familiar with the event confirmed that Cisco initiated talks to purchase optical chip technology company Luxtera Inc.
Although Cisco - the biggest maker of networking equipment - and representatives for Luxtera are yet to confirm this ongoing negotiation, sources have confirmed that Cisco has beaten several rival bids coming from companies like Intel Corp. (INTC) and Broadcom Inc. (AVGO) to reach this advanced stage of negotiation.
According to sources, the transaction has not yet been completed, nor has the final price for the closely held company been determined. But it is highly likely that Luxtera would be valued in the hundreds of millions of dollars.
Luxtera develops silicon photonics technology, which helps in converting information encoded into photons and carried over fiber optic cables directly into semiconductors - significantly speeding the transfer of data.
Adding this technology to its offerings would enable Cisco more capabilities, in terms of the components it uses to build networking machinery along with providing a more fundamental technology to differentiate its products. The additional technology may also help Cisco in rekindling its growth cycle again, which has been struggling amidst an industrywide migration to cheaper machinery that uses open-source software.
CSCO's RSI Indicator leaves overbought zone
The 10-day RSI Indicator for CSCO moved out of overbought territory on November 20, 2025. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 48 instances where the indicator moved out of the overbought zone. In of the 48 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CSCO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
CSCO broke above its upper Bollinger Band on November 13, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 12, 2025. You may want to consider a long position or call options on CSCO as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for CSCO just turned positive on November 13, 2025. Looking at past instances where CSCO's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CSCO advanced for three days, in of 352 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 316 cases where CSCO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. CSCO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.357) is normal, around the industry mean (4.701). P/E Ratio (29.127) is within average values for comparable stocks, (96.220). CSCO's Projected Growth (PEG Ratio) (1.786) is slightly higher than the industry average of (1.151). Dividend Yield (0.022) settles around the average of (0.031) among similar stocks. P/S Ratio (5.222) is also within normal values, averaging (22.641).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a manufacturer of Internet Protocol based networking products and services related to the communications and information technology industry
Industry TelecommunicationsEquipment
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