Cisco Systems (NASDAQ:CSCO) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Cisco Systems to “buy” from “hold,” adding to generally favorable analyst sentiment. The stock has a consensus “Moderate Buy” rating and an average price target of $128.52.
• Cisco reported stronger-than-expected quarterly results, with EPS of $1.22 versus estimates of $1.17 and revenue of $17.25 billion, up 17.6% year over year. The company also issued fiscal 2027 EPS guidance of $5.05 to $5.11.
• Cisco’s AI networking opportunity is supporting optimism, but valuation and slower services growth remain risks. Insiders sold about $5.0 million of shares during the latest quarter, while institutional investors own 73.33% of the stock.

Cisco Systems (NASDAQ:CSCO - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued on Sunday, Wall Street Zen reports.

Other research analysts have also issued research reports about the stock. Truist Financial raised their price target on shares of Cisco Systems from $125.00 to $140.00 and gave the company a "buy" rating in a report on Thursday, August 13th. Wells Fargo & Company lifted their price target on shares of Cisco Systems from $130.00 to $150.00 and gave the stock an "overweight" rating in a research note on Thursday, August 13th. Rosenblatt Securities upped their target price on Cisco Systems from $150.00 to $165.00 and gave the company a "buy" rating in a research report on Thursday, August 13th. Deutsche Bank Aktiengesellschaft initiated coverage on Cisco Systems in a research note on Tuesday, September 1st. They issued a "buy" rating and a $135.00 price target for the company. Finally, HSBC cut Cisco Systems from a "buy" rating to a "hold" rating and reduced their price objective for the stock from $137.00 to $120.00 in a research note on Friday, August 14th. Three analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, Cisco Systems presently has an average rating of "Moderate Buy" and a consensus target price of $128.52.

Cisco Systems Stock Performance

Cisco Systems stock opened at $118.39 on Friday. The stock has a fifty day moving average of $112.18 and a two-hundred day moving average of $107.77. Cisco Systems has a fifty-two week low of $66.81 and a fifty-two week high of $130.37. The company has a market capitalization of $466.76 billion, a price-to-earnings ratio of 35.45, a PEG ratio of 2.46 and a beta of 0.99. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.79 and a current ratio of 0.93.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.17 by $0.05. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The company had revenue of $17.25 billion for the quarter, compared to analyst estimates of $16.84 billion. During the same period in the prior year, the firm earned $0.99 EPS. The firm's quarterly revenue was up 17.6% on a year-over-year basis. 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, analysts anticipate that Cisco Systems will post 4.42 EPS for the current fiscal year.

Insider Buying and Selling at Cisco Systems

In related news, insider Jeetendra Patel sold 7,170 shares of the company's stock in a transaction on Friday, August 14th. The shares were sold at an average price of $111.57, for a total value of $799,956.90. Following the completion of the sale, the insider directly owned 230,593 shares in the company, valued at approximately $25,727,261.01. This represents a 3.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya Subaiya sold 312 shares of the stock in a transaction 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 transaction, the executive vice president directly owned 127,661 shares in the company, valued at $14,065,688.98. The trade was a 0.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 44,869 shares of company stock worth $5,005,620 over the last quarter. Insiders own 0.01% of the company's stock.

Hedge Funds Weigh In On Cisco Systems

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Networth Advisors LLC lifted 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 acquiring an additional 246 shares during the last quarter. GK Wealth Management LLC bought a new stake in Cisco Systems during the 3rd quarter valued at approximately $37,000. Manning & Napier Advisors LLC grew its holdings in Cisco Systems by 137.0% in the 1st quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider's stock valued at $27,000 after buying an additional 200 shares during the last quarter. Financial Life Planners bought a new position in Cisco Systems in the 1st quarter worth approximately $27,000. Finally, Principia Wealth Advisory LLC lifted its holdings in shares of Cisco Systems by 43.7% during the second quarter. Principia Wealth Advisory LLC now owns 398 shares of the network equipment provider's stock worth $47,000 after buying an additional 121 shares during the last quarter. Institutional investors and hedge funds own 73.33% of the company's stock.

Key Headlines Impacting Cisco Systems

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

• Positive Sentiment: AI networking growth is driving optimism: Cisco is being positioned as a potential leader in AI cloud networking, supported by rising hyperscaler orders, AI infrastructure demand and a solid fiscal 2027 outlook. Buy Cisco Systems as Leader of the AI Cloud Networking Space for 2027
• Positive Sentiment: New AI products expand Cisco’s growth story: The company introduced agentic AI tools for Webex, workplace automation and customer experience, along with Google Meet compatibility for Cisco devices and upcoming RoomOS updates. These initiatives could support longer-term software and collaboration growth. Cisco unveils agentic AI tools across Webex, workplace and CX
• Positive Sentiment: Analyst sentiment remains favorable: Coverage highlights Cisco’s recent momentum, fifth consecutive earnings beat and optimistic average brokerage recommendation, helping reinforce the bullish case for CSCO. Is Cisco a Buy as Wall Street Analysts Look Optimistic?
• Positive Sentiment: Board appointment adds technology expertise: Cisco appointed Girish Rishi to its board, bringing experience in data, AI, product development, supply chain and mergers and acquisitions. The appointment is strategically aligned with Cisco’s AI and networking priorities. Cisco Appoints Girish Rishi to its Board of Directors
• Neutral Sentiment: Revenue growth is concentrated in products: Recent quarterly product revenue rose sharply to $13.459 billion, while services revenue was nearly flat at $3.793 billion. Strong product demand is encouraging, but limited services growth may constrain recurring-revenue expansion. Cisco’s Product Sales Surged. Why Were Services Almost Flat?
• Negative Sentiment: Valuation and cooled momentum remain risks: After a substantial year-to-date advance, recent performance has weakened, while commentary questions whether Cisco’s valuation already reflects much of the AI opportunity. Cisco Could Be Entering a New Growth Phase

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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