Cisco Systems, Inc. (NASDAQ:CSCO) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Cisco Systems, Inc. has received an average rating of "Moderate Buy" from 24 brokerages, with 13 recommendations to buy and an average 12-month price target of $74.72.
• Insider transactions revealed that executives sold shares, reducing their ownership, with one executive decreasing their stake by 3.68% after selling over 9,000 shares.
• Cisco recently announced a quarterly dividend of $0.41, set to be paid on October 22nd, representing a yield of 2.3% based on an annual rate of $1.64.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) has earned an average rating of "Moderate Buy" from the twenty-four brokerages that are covering the stock, Marketbeat Ratings reports. Ten equities research analysts have rated the stock with a hold recommendation, thirteen have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price target among analysts that have covered the stock in the last year is $74.7222.

Several brokerages have issued reports on CSCO. Weiss Ratings reissued a "buy (b-)" rating on shares of Cisco Systems in a research report on Wednesday, October 8th. Wells Fargo & Company raised their target price on Cisco Systems from $75.00 to $83.00 and gave the stock an "overweight" rating in a research report on Thursday, August 14th. Wolfe Research assumed coverage on Cisco Systems in a research report on Tuesday, July 8th. They issued a "peer perform" rating on the stock. Barclays raised their price objective on Cisco Systems from $66.00 to $71.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 14th. Finally, UBS Group raised their price objective on Cisco Systems from $70.00 to $74.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 5th.

Insider Transactions at Cisco Systems

In other news, insider Jeetendra I. Patel sold 9,061 shares of the firm's stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $66.60, for a total value of $603,462.60. Following the transaction, the insider owned 237,405 shares of the company's stock, valued at $15,811,173. This trade represents a 3.68% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Thimaya K. Subaiya sold 7,511 shares of the firm's stock in a transaction dated Wednesday, August 20th. The stock was sold at an average price of $66.84, for a total value of $502,035.24. Following the completion of the transaction, the executive vice president directly owned 161,467 shares in the company, valued at $10,792,454.28. This trade represents a 4.44% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 82,965 shares of company stock valued at $5,559,996. Company insiders own 0.01% of the company's stock.

Institutional Trading of Cisco Systems

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Bare Financial Services Inc raised its stake in Cisco Systems by 531.0% during the 2nd quarter. Bare Financial Services Inc now owns 366 shares of the network equipment provider's stock valued at $25,000 after purchasing an additional 308 shares during the period. Financial Connections Group Inc. raised its stake in Cisco Systems by 89.4% during the 2nd quarter. Financial Connections Group Inc. now owns 409 shares of the network equipment provider's stock valued at $28,000 after purchasing an additional 193 shares during the period. Legacy Investment Solutions LLC bought a new stake in Cisco Systems during the 2nd quarter valued at approximately $28,000. Lowe Wealth Advisors LLC increased its stake in Cisco Systems by 96.2% in the 3rd quarter. Lowe Wealth Advisors LLC now owns 408 shares of the network equipment provider's stock worth $28,000 after acquiring an additional 200 shares during the last quarter. Finally, Pandora Wealth Inc. bought a new stake in Cisco Systems in the 1st quarter worth approximately $31,000. Institutional investors own 73.33% of the company's stock.

Cisco Systems Trading Up 1.5%

Cisco Systems stock opened at $70.13 on Friday. The stock has a market capitalization of $277.24 billion, a PE ratio of 26.77, a price-to-earnings-growth ratio of 2.95 and a beta of 0.97. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.00 and a quick ratio of 0.91. The business's fifty day moving average is $68.20 and its 200 day moving average is $65.14. Cisco Systems has a one year low of $52.11 and a one year high of $72.55.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last announced its earnings results on Wednesday, August 13th. The network equipment provider reported $0.99 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.98 by $0.01. The business had revenue of $14.67 billion for the quarter, compared to analysts' expectations of $14.63 billion. Cisco Systems had a return on equity of 27.06% and a net margin of 18.45%.The business's revenue for the quarter was up 7.6% on a year-over-year basis. During the same period last year, the firm posted $0.87 earnings per share. Cisco Systems has set its Q1 2026 guidance at 0.970-0.990 EPS. FY 2026 guidance at 4.000-4.060 EPS. On average, sell-side analysts predict that Cisco Systems will post 3.04 EPS for the current year.

Cisco Systems Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 22nd. Stockholders of record on Friday, October 3rd will be paid a $0.41 dividend. The ex-dividend date of this dividend is Friday, October 3rd. This represents a $1.64 annualized dividend and a dividend yield of 2.3%. Cisco Systems's dividend payout ratio (DPR) is 62.60%.

About Cisco Systems

Cisco Systems, Inc designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization.

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