Cisco Systems (NASDAQ:CSCO) Shares Down 1.1% on Insider Selling

Key Points

• Cisco shares fell 1.1% to $111.61 after CEO Charles Robbins and three other executives sold a combined 38,045 shares worth about $4.25 million. The sales were conducted under pre-arranged Rule 10b5-1 plans.
• Cisco reported strong quarterly results, with revenue up 17.6% year over year to $17.25 billion and EPS of $1.22, beating analyst expectations. AI infrastructure orders and projected AI-related revenue support the company’s growth outlook.
• Analysts maintain a generally positive view, with a “Moderate Buy” consensus and average price target of $129.43, although concerns remain over declining gross margins, rising memory costs and the stock’s elevated valuation.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report)'s share price traded down 1.1% during trading on Tuesday following insider selling activity. The company traded as low as $110.36 and last traded at $111.61. 20,033,311 shares were traded during mid-day trading, a decline of 16% from the average session volume of 23,733,363 shares. The stock had previously closed at $112.90.

Specifically, CEO Charles Robbins sold 21,628 shares of Cisco Systems stock in a transaction that occurred on 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 sale, the chief executive officer directly owned 602,710 shares in the company, 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 Deborah L. Stahlkopf sold 6,487 shares of the stock in a transaction on Friday, August 14th. The stock was sold at an average price of $111.53, for a total value of $723,495.11. Following the completion of the transaction, the executive vice president owned 167,116 shares of the company's stock, valued at approximately $18,638,447.48. This trade represents a 3.74% 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 other news, EVP Oliver Tuszik sold 2,760 shares of the business's stock in a transaction on Friday, August 14th. The shares were sold at an average price of $112.46, for a total transaction of $310,389.60. Following the sale, the executive vice president owned 165,276 shares in the company, valued at approximately $18,586,938.96. The trade was a 1.64% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on CSCO. CICC Research lifted their price target on shares of Cisco Systems from $96.00 to $125.00 and gave the company an "outperform" rating in a research report on Monday, May 18th. Citigroup upped their price objective on shares of Cisco Systems from $90.00 to $112.00 and gave the stock a "buy" rating in a report on Thursday, May 14th. UBS Group lifted their target price on shares of Cisco Systems from $132.00 to $138.00 and gave the company a "buy" rating in a report on Thursday, August 13th. Wells Fargo & Company upped their price target on Cisco Systems from $130.00 to $150.00 and gave the stock an "overweight" rating in a research note on Thursday, August 13th. Finally, KeyCorp lifted their price objective on Cisco Systems from $130.00 to $135.00 and gave the company an "overweight" rating in a research note on Thursday, August 13th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $129.43.

Key Headlines Impacting Cisco Systems

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

• Positive Sentiment: Cisco reported record fiscal fourth-quarter revenue of about $17.3 billion, up 18% year over year, while non-GAAP EPS of $1.22 exceeded the $1.17 consensus estimate. Management’s fiscal 2027 outlook and expectations for $7.5 billion in AI infrastructure revenue reinforce the company’s growth story. Cisco AI infrastructure and margin outlook
• Positive Sentiment: AI infrastructure orders reached $4 billion in the latest quarter and $9.3 billion for fiscal 2026. Investment commentary highlighted strong demand from data-center customers, supporting confidence in Cisco’s networking products and AI-related growth. Strong AI infrastructure orders
• Positive Sentiment: Freedom Capital upgraded CSCO from “hold” to “strong buy.” Separately, some analysts argued that the post-earnings selloff was excessive, with Cisco’s AI opportunity and earnings growth potentially supporting the shares. Cisco selloff viewed as overreaction
• Neutral Sentiment: Cisco benefited from higher hardware prices and a heavier product mix, partly offsetting rising memory costs. However, those costs and the hardware-heavy mix reduced product margins, creating uncertainty about how much of the AI-driven growth will translate into profit. Cisco hardware pricing and margins
• Neutral Sentiment: Cisco’s quarterly dividend remains $0.42 per share, or $1.68 annually, providing a modest 1.5% yield and ongoing income support for shareholders.
• Negative Sentiment: Gross margin fell to 66.3% and management expects approximately 65%–66% in the next quarter. Investors appear concerned that memory inflation, pricing pressure and increased hardware sales could constrain margins even as revenue rises.
• Negative Sentiment: HSBC downgraded Cisco to “hold,” adding to caution around the stock’s valuation and the sustainability of its AI growth rate. With CSCO trading at roughly 33 times earnings, expectations are elevated. HSBC Cisco hold downgrade
• Negative Sentiment: CEO Charles Robbins and three other executives sold a combined 38,045 shares worth approximately $4.25 million. The transactions were made under pre-arranged Rule 10b5-1 plans, limiting their significance, but the cluster of sales is still a modest negative signal.

Cisco Systems Trading Down 1.1%

The stock has a market cap of $439.90 billion, a PE ratio of 33.42, a PEG ratio of 2.38 and a beta of 1.02. 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 stock's fifty day moving average price is $116.81 and its 200 day moving average price is $99.48.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.05. The business had revenue of $17.25 billion for the quarter, compared to analysts' expectations of $16.84 billion. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%.The firm's quarterly revenue was up 17.6% on a year-over-year basis. During the same period in the prior year, the firm posted $0.99 EPS. 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 forecast that Cisco Systems, Inc. will post 4.09 EPS for the current year.

Cisco Systems Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 21st. Investors of record on Friday, October 2nd will be given a dividend of $0.42 per share. The ex-dividend date of this dividend is Friday, October 2nd. This represents a $1.68 annualized dividend and a dividend yield of 1.5%. Cisco Systems's dividend payout ratio (DPR) is 50.30%.

Hedge Funds Weigh In On Cisco Systems

A number of hedge funds have recently bought and sold shares of CSCO. Vanguard Group Inc. lifted its position in Cisco Systems by 1.0% during the fourth quarter. Vanguard Group Inc. now owns 398,943,293 shares of the network equipment provider's stock valued at $30,730,602,000 after purchasing an additional 4,049,893 shares during the period. BlackRock Inc. bought a new stake in shares of Cisco Systems in the second quarter worth $42,129,647,000. State Street Corp increased its position in Cisco Systems by 0.5% during the fourth quarter. State Street Corp now owns 195,521,161 shares of the network equipment provider's stock valued at $15,060,995,000 after acquiring an additional 1,057,962 shares during the last quarter. Morgan Stanley lifted its holdings in Cisco Systems by 0.3% in the fourth quarter. Morgan Stanley now owns 75,326,258 shares of the network equipment provider's stock valued at $5,802,382,000 after acquiring an additional 206,352 shares during the period. Finally, Invesco Ltd. lifted its holdings in Cisco Systems by 11.6% in the fourth quarter. Invesco Ltd. now owns 59,836,782 shares of the network equipment provider's stock valued at $4,609,227,000 after acquiring an additional 6,224,062 shares during the period. Hedge funds and other institutional investors own 73.33% of the company's stock.

Cisco Systems Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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