Cisco Systems (NASDAQ:CSCO) Shares Down 1.7% - Time to Sell?

Key Points

• Cisco shares fell 1.7% on Monday, trading as low as $117.26 and closing at $119.25, with volume below average. The move comes despite the stock remaining above both its 50-day and 200-day moving averages.
• Analysts remain broadly positive on Cisco, with several firms recently raising price targets to as high as $150. The consensus rating is Moderate Buy, and the average target price is $123.14.
• Cisco beat fiscal Q3 earnings expectations, reporting $1.06 EPS on revenue of $15.84 billion, and it also announced a quarterly dividend of $0.42 per share. Insiders have also sold shares recently, though the activity was tied to pre-arranged trading plans.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report)'s share price fell 1.7% on Monday . The stock traded as low as $117.26 and last traded at $119.25. Approximately 16,436,976 shares traded hands during trading, a decline of 31% from the average session volume of 23,946,510 shares. The stock had previously closed at $121.31.

Analysts Set New Price Targets

Several analysts have recently issued reports on the company. Argus upped their price objective on Cisco Systems from $100.00 to $150.00 and gave the company a "buy" rating in a research report on Tuesday, May 19th. Truist Financial began coverage on shares of Cisco Systems in a research note on Tuesday, March 31st. They issued a "buy" rating and a $94.00 target price for the company. Bank of America upped their target price on shares of Cisco Systems from $135.00 to $150.00 and gave the company a "buy" rating in a report on Monday, June 8th. Evercore raised their price target on shares of Cisco Systems from $110.00 to $150.00 and gave the stock an "outperform" rating in a research note on Thursday, May 14th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Cisco Systems from $95.00 to $96.00 in a report on Monday, May 11th. Three analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $123.14.

Cisco Systems Trading Down 1.7%

The business has a 50 day simple moving average of $115.32 and a 200-day simple moving average of $92.18. 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 stock has a market capitalization of $470.02 billion, a price-to-earnings ratio of 38.72, a price-to-earnings-growth ratio of 3.09 and a beta of 1.02.

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

Cisco Systems Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 22nd. Investors 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 yield of 1.4%. Cisco Systems's dividend payout ratio is 54.55%.

Insider Activity at Cisco Systems

In other Cisco Systems news, insider Jeetendra I. Patel sold 7,169 shares of Cisco Systems 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 transaction, the insider owned 246,737 shares in the company, valued at $28,937,315.36. This trade represents a 2.82% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,761 shares of the business's stock in a transaction 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 sale, the executive vice president directly owned 180,877 shares of the company's stock, valued at $20,730,312.97. This represents a 1.50% 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. Insiders have sold a total of 47,650 shares of company stock valued at $5,668,823 over the last 90 days. 0.01% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cisco Systems

A number of large investors have recently modified their holdings of the company. Vanguard Group Inc. raised its holdings in Cisco Systems by 1.0% in 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 buying an additional 4,049,893 shares during the period. State Street Corp raised its stake in shares of Cisco Systems by 0.5% in the 4th 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 period. Morgan Stanley raised its stake in shares of Cisco Systems by 0.3% in the 4th 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. Invesco Ltd. lifted its holdings in shares of Cisco Systems by 11.6% during the 4th 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 in the last quarter. Finally, Norges Bank purchased a new stake in Cisco Systems during the 4th quarter worth $4,473,272,000. 73.33% of the stock is currently 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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