Cisco Systems (NASDAQ:CSCO) Shares Down 1.1% - Should You Sell?

Key Points

• Cisco shares fell 1.1% in Monday trading, even after a recent run-up, with the stock last changing hands around $110.70.
• Despite the dip, analyst sentiment remains constructive: Wall Street Zen upgraded Cisco to “Buy,” and the broader consensus still sits at a “Moderate Buy” with a $123.14 average target price.
• Cisco continues to show fundamental strength and growth catalysts, including a recent earnings beat, 12% revenue growth, a quarterly dividend of $0.42 per share, and ongoing focus on AI, quantum networking, and other emerging technologies.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) shares traded down 1.1% during mid-day trading on Monday . The company traded as low as $110.65 and last traded at $110.70. 15,600,873 shares traded hands during trading, a decline of 35% from the average session volume of 23,949,252 shares. The stock had previously closed at $111.94.

Key Stories Impacting Cisco Systems

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

• Positive Sentiment: Wall Street Zen upgraded Cisco to "Buy", adding to the generally constructive analyst view on the stock. Wall Street Zen Upgrades Cisco Systems NASDAQ: CSCO to "Buy"
• Positive Sentiment: Cisco is getting attention for its AI infrastructure and networking growth story, with reports highlighting it as an interesting AI trade and suggesting upside tied to strong demand in that area. Price Prediction: Cisco Stock Will Double on This Date
• Positive Sentiment: The company is also expanding into emerging tech by testing quantum networking at its Photonics Center and adding an AI-powered contact center partner for Webex, which supports the view that Cisco is broadening its product pipeline. Cisco (CSCO) Tests Quantum Networking While Webex Adds AI Contact Center Partner
• Neutral Sentiment: CSCO is trending on Zacks and in market commentary, which can increase trading interest but does not by itself change the company’s fundamentals. Here is What to Know Beyond Why Cisco Systems, Inc. (CSCO) is a Trending Stock
• Neutral Sentiment: Analyst commentary remains favorable overall, with another piece arguing Cisco is a “good investment,” though this mainly reflects sentiment rather than a new business catalyst. Wall Street Analysts Think Cisco (CSCO) Is a Good Investment: Is It?
• Negative Sentiment: One report says Cisco stock fell amid speculation about a possible Zafran Security acquisition, suggesting investors may be cautious about deal risk or spending, even though the target denied active sale talks. Cisco Systems (CSCO) Stock Dips Amid Zafran Security Acquisition Reports

Wall Street Analysts Forecast Growth

Several analysts recently commented on CSCO shares. Evercore upped their price target on shares of Cisco Systems from $110.00 to $150.00 and gave the company an "outperform" rating in a research report on Thursday, May 14th. Piper Sandler lifted their price objective on shares of Cisco Systems from $86.00 to $132.00 and gave the company a "neutral" rating in a research note on Thursday, May 14th. Wall Street Zen raised shares of Cisco Systems from a "hold" rating to a "buy" rating in a report on Monday. Citic Securities increased their target price on shares of Cisco Systems from $90.00 to $130.00 in a research note on Friday, May 15th. Finally, JPMorgan Chase & Co. raised their price target on Cisco Systems from $95.00 to $96.00 in a report on Monday, May 11th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $123.14.

Cisco Systems Price Performance

The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.81 and a current ratio of 0.92. The company has a 50-day simple moving average of $117.40 and a 200-day simple moving average of $93.44. The company has a market cap of $436.32 billion, a price-to-earnings ratio of 35.94, a PEG ratio of 2.85 and a beta of 1.02.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its quarterly earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 EPS for the quarter, beating the consensus estimate of $1.03 by $0.03. Cisco Systems had a return on equity of 28.44% and a net margin of 20.14%.The business had revenue of $15.84 billion during the quarter, compared to analysts' expectations of $15.56 billion. During the same period last year, the firm earned $0.96 EPS. The company's quarterly revenue was up 12.0% compared to the same quarter last year. 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. As a group, research analysts predict that Cisco Systems, Inc. will post 3.54 earnings per share for the current year.

Cisco Systems Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 22nd. Shareholders of record on Monday, July 6th will be given a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Monday, July 6th. Cisco Systems's payout ratio is presently 54.55%.

Insider Buying and Selling at Cisco Systems

In other news, EVP Deborah L. Stahlkopf sold 6,586 shares of the company's stock in a transaction on Friday, May 15th. The shares were sold at an average price of $117.31, for a total transaction of $772,603.66. Following the transaction, the executive vice president directly owned 177,223 shares of the company's stock, valued at $20,790,030.13. This represents a 3.58% decrease in their position. 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, insider Jeetendra I. Patel sold 7,169 shares of the stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $117.28, for a total transaction of $840,780.32. Following the completion of the transaction, the insider owned 246,737 shares of the company's stock, valued at $28,937,315.36. This represents a 2.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 47,650 shares of company stock worth $5,668,823. Company insiders own 0.01% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. MidAtlantic Capital Management Inc. purchased a new stake in Cisco Systems during the fourth quarter worth $25,000. Intesa Sanpaolo Wealth Management acquired a new stake in Cisco Systems in the fourth quarter valued at $25,000. Networth Advisors LLC increased its position in shares of Cisco Systems by 276.4% in the first quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider's stock valued at $26,000 after buying an additional 246 shares in the last quarter. Financial Life Planners acquired a new position in shares of Cisco Systems during the 1st quarter worth $27,000. Finally, Manning & Napier Advisors LLC raised its stake in shares of Cisco Systems by 137.0% during the 1st quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider's stock worth $27,000 after buying an additional 200 shares during the last quarter. 73.33% of the stock is owned by hedge funds and other institutional investors.

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.

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