Cisco Systems (NASDAQ:CSCO) Shares Down 1.7% - Here's Why

Key Points

• Cisco shares fell 1.7% in Tuesday trading, despite heavier-than-normal volume, after touching an intraday low of $117.10 and last trading around $118.33.
• Recent analyst commentary has been bullish, with Bank of America, Rosenblatt, UBS, Citigroup, and Piper Sandler all lifting price targets amid optimism around AI-driven networking demand and Cisco’s earnings momentum.
• Cisco’s latest quarter topped expectations, with EPS of $1.06 and revenue of $15.84 billion, while the company also announced a quarterly dividend of $0.42 per share and issued forward guidance for fiscal 2026.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) shares were down 1.7% during mid-day trading on Tuesday . The company traded as low as $117.10 and last traded at $118.33. Approximately 26,340,412 shares traded hands during mid-day trading, an increase of 12% from the average daily volume of 23,461,504 shares. The stock had previously closed at $120.41.

More Cisco Systems News

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

• Positive Sentiment: Bank of America raised Cisco’s price target to $135 from $114 and kept a Buy rating, saying demand for high-speed optical networking gear is being boosted by AI infrastructure spending. BofA raises Cisco, Ciena targets as AI optics boom accelerates
• Positive Sentiment: Rosenblatt also boosted its target on Cisco to $150 from $100 and reiterated a Buy rating after the company’s latest quarterly results, signaling confidence in Cisco’s earnings momentum and execution. Rosenblatt Raises its Price Target on Cisco Systems (CSCO)
• Positive Sentiment: One article highlighted Cisco as the clear winner in the AI networking trade, noting that the stock has sharply outperformed peers like Arista and Broadcom over the past month. Cisco Soars 32% in a Month, Arista Falls 10%, Broadcom Drifts: The AI Networking Trade Has a Clear Winner
• Neutral Sentiment: Investor commentary comparing Nvidia’s growth pattern to Cisco’s 1990s run is drawing attention to Cisco’s history, but it does not directly change near-term fundamentals. Nvidia Sales Growth Looks Like Cisco. That’s Not Necessarily a Bad Thing.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on CSCO shares. UBS Group increased their target price on Cisco Systems from $95.00 to $132.00 and gave the stock a "buy" rating in a report on Thursday, May 14th. Erste Group Bank lowered Cisco Systems from a "buy" rating to a "hold" rating in a research report on Wednesday, February 18th. Citigroup increased their price target on Cisco Systems from $90.00 to $112.00 and gave the company a "buy" rating in a research report on Thursday, May 14th. Piper Sandler increased their price target on Cisco Systems from $86.00 to $132.00 and gave the company a "neutral" rating in a research report on Thursday, May 14th. Finally, Zacks Research lowered Cisco Systems from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $119.09.

Cisco Systems Trading Down 1.7%

The stock has a market capitalization of $466.39 billion, a PE ratio of 38.42, a price-to-earnings-growth ratio of 3.66 and a beta of 0.92. The firm has a 50-day moving average price of $90.19 and a 200-day moving average price of $81.91. The company has a current ratio of 0.92, a quick ratio of 0.81 and a debt-to-equity ratio of 0.40.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last announced its earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share (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 firm had revenue of $15.84 billion during the quarter, compared to analyst estimates of $15.56 billion. During the same period last year, the firm posted $0.96 EPS. The business's 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, equities analysts forecast that Cisco Systems, Inc. will post 3.44 EPS for the current fiscal year.

Cisco Systems Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 22nd. Stockholders of record on Monday, July 6th will be given a dividend of $0.42 per share. The ex-dividend date of this dividend is Monday, July 6th. This represents a $1.68 annualized dividend and a dividend yield of 1.4%. Cisco Systems's dividend payout ratio (DPR) is currently 54.55%.

Insider Activity

In other news, EVP Thimaya K. Subaiya sold 1,744 shares of the firm's stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $77.07, for a total transaction of $134,410.08. Following the completion of the sale, the executive vice president directly owned 156,693 shares of the company's stock, valued at $12,076,329.51. This trade represents a 1.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Jeetendra I. Patel sold 7,169 shares of the firm's stock in a transaction on Friday, May 15th. The shares were sold at an average price of $117.28, for a total value of $840,780.32. Following the sale, the insider directly owned 246,737 shares of the company's stock, valued at approximately $28,937,315.36. This represents a 2.82% decrease in their ownership of the stock. 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 quarter, insiders sold 29,924 shares of company stock worth $2,991,192. 0.01% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Financial Insights Inc. grew its stake in shares of Cisco Systems by 1.5% during the 1st quarter. Financial Insights Inc. now owns 6,220 shares of the network equipment provider's stock worth $483,000 after acquiring an additional 92 shares during the period. Signature Resources Capital Management LLC grew its stake in shares of Cisco Systems by 2.3% during the 1st quarter. Signature Resources Capital Management LLC now owns 5,061 shares of the network equipment provider's stock worth $393,000 after acquiring an additional 116 shares during the period. Smithfield Trust Co grew its stake in shares of Cisco Systems by 0.3% during the 4th quarter. Smithfield Trust Co now owns 33,666 shares of the network equipment provider's stock worth $2,596,000 after acquiring an additional 117 shares during the period. Pacific Sage Partners LLC grew its stake in shares of Cisco Systems by 0.7% during the 1st quarter. Pacific Sage Partners LLC now owns 16,185 shares of the network equipment provider's stock worth $1,256,000 after acquiring an additional 118 shares during the period. Finally, Capstone Wealth Management Group LLC grew its stake in shares of Cisco Systems by 3.2% during the 4th quarter. Capstone Wealth Management Group LLC now owns 3,818 shares of the network equipment provider's stock worth $294,000 after acquiring an additional 120 shares during the period. 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.

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