Cisco Systems (NASDAQ:CSCO) Lowered to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Cisco Systems from “Buy” to “Hold.” Despite the downgrade, analysts’ overall consensus remains “Moderate Buy,” with an average price target of $123.14.
• Cisco reported quarterly earnings of $1.06 per share, surpassing estimates of $1.03, while revenue rose 12% year over year to $15.84 billion.
• Cisco shares opened at $114.57, near their 50-day average of $117.88, with a 12-month trading range of $65.75 to $130.37. Insiders have sold 47,650 shares worth approximately $5.67 million over the past 90 days.

Cisco Systems (NASDAQ:CSCO - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Tuesday.

A number of other research analysts have also recently commented on CSCO. The Goldman Sachs Group upped their price objective on Cisco Systems from $116.00 to $125.00 and gave the company a "neutral" rating in a report on Wednesday, June 3rd. CICC Research increased their price target on Cisco Systems from $96.00 to $125.00 and gave the stock an "outperform" rating in a report on Monday, May 18th. Truist Financial started coverage on shares of Cisco Systems in a report on Tuesday, March 31st. They issued a "buy" rating and a $94.00 price objective on the stock. Barclays increased their target price on shares of Cisco Systems from $76.00 to $121.00 and gave the stock an "equal weight" rating in a research note on Thursday, May 14th. Finally, UBS Group lifted their price target on shares of Cisco Systems from $95.00 to $132.00 and gave the company a "buy" rating in a research report on Thursday, May 14th. Three analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $123.14.

Cisco Systems Price Performance

Cisco Systems stock opened at $114.57 on Tuesday. The company has a current ratio of 0.92, a quick ratio of 0.81 and a debt-to-equity ratio of 0.40. The company has a 50-day moving average price of $117.88 and a 200 day moving average price of $94.97. Cisco Systems has a 12-month low of $65.75 and a 12-month high of $130.37. The stock has a market cap of $451.57 billion, a P/E ratio of 37.20, a PEG ratio of 2.91 and a beta of 1.02.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share for the quarter, beating the consensus estimate of $1.03 by $0.03. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The company had revenue of $15.84 billion for the quarter, compared to analyst estimates of $15.56 billion. During the same period in the previous year, the business posted $0.96 EPS. Cisco Systems's revenue was up 12.0% on a year-over-year basis. Cisco Systems has set its Q4 2026 guidance at 1.160-1.180 EPS and its FY 2026 guidance at 4.270-4.290 EPS. Sell-side analysts anticipate that Cisco Systems will post 3.54 earnings per share for the current year.

Insider Transactions at Cisco Systems

In other news, EVP Deborah L. Stahlkopf sold 6,586 shares of Cisco Systems stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $117.31, for a total value of $772,603.66. Following the completion of the transaction, the executive vice president owned 177,223 shares in the company, valued at approximately $20,790,030.13. This trade represents a 3.58% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,761 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $114.61, for a total transaction of $316,438.21. Following the completion of the sale, the executive vice president directly owned 180,877 shares in the company, valued at approximately $20,730,312.97. This represents a 1.50% 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 a total of 47,650 shares of company stock valued at $5,668,823 in the last 90 days. Insiders own 0.01% of the company's stock.

Institutional Trading of Cisco Systems

Several hedge funds have recently made changes to their positions in CSCO. MidAtlantic Capital Management Inc. acquired a new stake in Cisco Systems in the fourth quarter valued at about $25,000. Intesa Sanpaolo Wealth Management acquired a new position in Cisco Systems during the 4th quarter worth approximately $25,000. Networth Advisors LLC increased 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 purchased a new position in shares of Cisco Systems during the 1st quarter worth approximately $27,000. Finally, Manning & Napier Advisors LLC lifted its holdings in shares of 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 period. Institutional investors and hedge funds own 73.33% of the company's stock.

About Cisco Systems

Cisco Systems, Inc is a global technology company that designs, manufactures and sells networking hardware, software and telecommunications equipment. Its core business focuses on enabling enterprise and service-provider networks through products such as routers, switches, network security appliances and wireless systems. Over time Cisco has broadened its portfolio to emphasize software-defined networking, cybersecurity, cloud infrastructure and edge computing solutions that help organizations build and manage modern IT environments.

In addition to hardware, Cisco offers a growing range of software platforms and subscription services for network management, security, analytics and collaboration.

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