Cisco Systems (NASDAQ:CSCO) Lowered to "Hold" Rating by Hsbc Global Res

Key Points

• Cisco Systems was downgraded from a "strong-buy" to a "hold" rating by Hsbc Global Res, reflecting a shift in sentiment among analysts.
• Despite the downgrade, Rosenblatt Securities and Bank of America assigned a "buy" rating with price targets of $87.00 and $85.00, respectively, indicating mixed views on the stock's future performance.
• Cisco reported earnings of $0.99 per share for the last quarter, exceeding analysts' expectations, and achieved revenue growth of 7.6% year-over-year.

Hsbc Global Res cut shares of Cisco Systems (NASDAQ:CSCO - Free Report) from a strong-buy rating to a hold rating in a report published on Friday morning,Zacks.com reports.

Several other analysts have also issued reports on CSCO. CICC Research began coverage on Cisco Systems in a research note on Monday, July 14th. They issued an "outperform" rating and a $78.00 price objective on the stock. Bank of America increased their target price on shares of Cisco Systems from $76.00 to $85.00 and gave the stock a "buy" rating in a report on Thursday, August 14th. HSBC reiterated a "hold" rating and set a $69.00 price target on shares of Cisco Systems in a report on Friday. Morgan Stanley boosted their target price on shares of Cisco Systems from $67.00 to $70.00 and gave the stock an "overweight" rating in a report on Friday, July 18th. Finally, Rosenblatt Securities restated a "buy" rating and set a $87.00 price target on shares of Cisco Systems in a report on Thursday, August 14th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and ten have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $74.53.

Cisco Systems Stock Down 0.3%

Shares of CSCO traded down $0.19 on Friday, hitting $66.76. The company's stock had a trading volume of 18,488,695 shares, compared to its average volume of 21,593,236. The firm's fifty day moving average price is $68.00 and its 200-day moving average price is $63.42. Cisco Systems has a fifty-two week low of $47.85 and a fifty-two week high of $72.55. The company has a quick ratio of 0.92, a current ratio of 1.01 and a debt-to-equity ratio of 0.49. The firm has a market capitalization of $264.37 billion, a price-to-earnings ratio of 25.48, a P/E/G ratio of 2.83 and a beta of 0.91.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its quarterly earnings results on Wednesday, August 13th. The network equipment provider reported $0.99 EPS for the quarter, beating analysts' consensus estimates of $0.98 by $0.01. Cisco Systems had a return on equity of 27.02% and a net margin of 18.45%.The company had revenue of $14.67 billion for the quarter, compared to analyst estimates of $14.63 billion. During the same period in the previous year, the company posted $0.87 earnings per share. The company's quarterly revenue was up 7.6% compared to the same quarter last year. 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, equities research analysts expect that Cisco Systems will post 3.04 EPS for the current year.

Cisco Systems Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 22nd. Investors of record on Friday, October 3rd will be given a $0.41 dividend. The ex-dividend date is Friday, October 3rd. This represents a $1.64 annualized dividend and a yield of 2.5%. Cisco Systems's payout ratio is 62.60%.

Insider Buying and Selling

In other news, insider Jeetendra I. Patel sold 899 shares of the business's stock in a transaction on Thursday, June 12th. The shares were sold at an average price of $64.27, for a total transaction of $57,778.73. Following the sale, the insider owned 255,377 shares in the company, valued at approximately $16,413,079.79. The trade was a 0.35% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Richard Scott Herren sold 15,678 shares of Cisco Systems stock in a transaction dated Tuesday, June 17th. The stock was sold at an average price of $65.52, for a total value of $1,027,222.56. Following the completion of the transaction, the chief financial officer directly owned 309,543 shares of the company's stock, valued at approximately $20,281,257.36. This represents a 4.82% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 77,731 shares of company stock worth $5,021,519 in the last ninety days. 0.01% of the stock is currently owned by insiders.

Institutional Trading of Cisco Systems

Several large investors have recently modified their holdings of CSCO. Bare Financial Services Inc boosted its holdings in Cisco Systems by 531.0% in the 2nd quarter. Bare Financial Services Inc now owns 366 shares of the network equipment provider's stock worth $25,000 after buying an additional 308 shares during the period. Legacy Investment Solutions LLC purchased a new stake in shares of Cisco Systems in the second quarter worth about $28,000. Financial Connections Group Inc. boosted its position in shares of 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 acquiring an additional 193 shares during the last quarter. Navigoe LLC purchased a new stake in Cisco Systems during the fourth quarter valued at $26,000. Finally, Mpwm Advisory Solutions LLC bought a new position in shares of Cisco Systems in the 4th quarter valued at about $26,000. Institutional investors own 73.33% of the company's stock.

Cisco Systems Company Profile

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.