Cisco Systems (NASDAQ:CSCO) Stock Lifted to "Strong-Buy" by Zacks Research

Key Points

• Zacks Research upgraded Cisco Systems to “Strong Buy” from “Hold.” Overall, analysts rate the stock “Moderate Buy,” with an average price target of $128.52.
• Cisco exceeded quarterly expectations, reporting $1.22 in earnings per share versus the $1.17 consensus and $17.25 billion in revenue versus $16.84 billion expected. Revenue rose 17.6% year over year.
• Despite positive analyst sentiment and growing AI-related demand, insiders sold 44,869 shares worth approximately $5.0 million during the last quarter, while valuation and the pace of AI revenue growth remain key risks.

Cisco Systems (NASDAQ:CSCO - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued on Wednesday, Zacks reports.

Several other equities analysts have also issued reports on the company. Barclays lifted their target price on Cisco Systems from $121.00 to $123.00 and gave the company an "equal weight" rating in a research note on Thursday, August 13th. Weiss Ratings restated a "buy (b)" rating on shares of Cisco Systems in a research note on Wednesday, August 26th. Truist Financial lifted their price target on shares of Cisco Systems from $125.00 to $140.00 and gave the stock a "buy" rating in a report on Thursday, August 13th. Sanford C. Bernstein began coverage on Cisco Systems in a research report on Wednesday. They set a "market perform" rating and a $110.00 price target on the stock. Finally, Wall Street Zen upgraded Cisco Systems from a "hold" rating to a "buy" rating in a report on Sunday, September 20th. Three research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Cisco Systems presently has an average rating of "Moderate Buy" and an average price target of $128.52.

Cisco Systems Stock Performance

Shares of CSCO stock opened at $108.76 on Wednesday. The firm has a market cap of $428.80 billion, a price-to-earnings ratio of 32.56, a PEG ratio of 2.25 and a beta of 0.99. Cisco Systems has a 52-week low of $66.81 and a 52-week high of $130.37. The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39. The company's 50 day moving average is $112.04 and its 200 day moving average is $106.40.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share for the quarter, topping analysts' consensus estimates of $1.17 by $0.05. The company had revenue of $17.25 billion during the quarter, compared to analyst estimates of $16.84 billion. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%.Cisco Systems's revenue was up 17.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.99 earnings per share. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. On average, sell-side analysts anticipate that Cisco Systems will post 4.41 EPS for the current fiscal year.

Insider Buying and Selling at Cisco Systems

In related news, CEO Charles Robbins sold 21,628 shares of Cisco Systems stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $111.54, for a total transaction of $2,412,387.12. Following the completion of the sale, the chief executive officer owned 602,710 shares of the company's stock, valued at $67,226,273.40. The trade was a 3.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 312 shares of the stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $110.18, for a total transaction of $34,376.16. Following the completion of the transaction, the executive vice president owned 127,661 shares in the company, valued at approximately $14,065,688.98. This trade represents a 0.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 44,869 shares of company stock worth $5,005,620. 0.01% of the stock is owned by corporate insiders.

Institutional Trading of Cisco Systems

Several large investors have recently made changes to their positions in CSCO. Networth Advisors LLC grew its position in Cisco Systems by 276.4% during the 1st quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider's stock worth $26,000 after purchasing an additional 246 shares during the period. Financial Life Planners acquired a new position in shares of Cisco Systems in the 1st quarter valued at about $27,000. Manning & Napier Advisors LLC boosted its stake in shares of Cisco Systems by 137.0% in the first quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider's stock worth $27,000 after buying an additional 200 shares during the last quarter. Osbon Capital Management LLC purchased a new stake in shares of Cisco Systems in the fourth quarter worth about $32,000. Finally, RMG Wealth Management LLC grew its holdings in Cisco Systems by 308.7% during the first quarter. RMG Wealth Management LLC now owns 425 shares of the network equipment provider's stock worth $33,000 after acquiring an additional 321 shares during the period. 73.33% of the stock is owned by hedge funds and other institutional investors.

More Cisco Systems News

Here are the key news stories impacting Cisco Systems this week:

• Positive Sentiment: Cisco reported a fifth consecutive earnings beat, with AI infrastructure orders growing faster than expected. Product orders increased 35% year over year in fiscal Q4 2026, reinforcing investor optimism about demand for networking equipment supporting artificial intelligence. The Boring Tech Stock With an AI Tailwind Has 17% Upside
• Positive Sentiment: Cisco’s planned sovereign AI infrastructure platform with Bell Canada could expand its networking, security, observability, and critical-infrastructure businesses in regulated markets requiring data residency and control. Did Bell–Cisco Sovereign AI Pact Just Recast Cisco Systems’ Regulated-Market Strategy?
• Positive Sentiment: Cisco remains attractive to income-focused investors after announcing a quarterly dividend of $0.42 payable October 21. Its dividend growth and exposure to AI networking are supporting the case for the stock as a combination of income and technology exposure. Cisco Systems to Distribute Quarterly Dividend
• Neutral Sentiment: The industrial-control-system security market is forecast to grow at a 16.5% annual rate through 2031, offering a favorable long-term market backdrop for Cisco’s cybersecurity business, although the report does not provide a new company-specific forecast. Industrial Control System Security Market Forecasts Growth
• Neutral Sentiment: Bernstein initiated coverage with a “market perform” rating and a $110 price target, implying limited near-term upside from the referenced $108.76 level. Bernstein Initiates Coverage of Cisco Systems
• Negative Sentiment: Management described its fiscal 2027 AI revenue forecast as prudent, raising questions about how quickly AI-related sales can materially affect overall results. AI represented only about 6% of fiscal 2026 revenue, so Cisco still depends heavily on slower-growing enterprise and telecom businesses. Are There Signs Cisco Stock Is Going To Swing Big?
• Negative Sentiment: Piper Sandler lowered its price target to $125, while analysts and commentary have highlighted valuation risk after CSCO’s strong 12-month advance. At roughly 29 times earnings, investors may require sustained growth beyond current AI optimism to justify additional upside. Piper Sandler Cuts Target for Cisco Systems Stock

About Cisco Systems

Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration, observability and data center solutions. Its products and services help businesses, governments, educational institutions and other organizations connect users and devices, manage infrastructure, protect digital environments and support cloud-based operations.

Cisco's portfolio includes routers and switches, wireless networking equipment, network management software, firewalls, identity and access tools, endpoint security products, collaboration applications and observability platforms.

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