Cisco Systems (NASDAQ:CSCO) Shares Down 1.8% - Should You Sell?

Key Points

• Cisco Systems shares fell 1.8% to $67.87, with trading volume significantly lower than average, at approximately 4.89 million shares.
• Analysts have mixed ratings for Cisco, with price targets ranging from $66.00 to $87.00, and an average target price of $74.53.
• Cisco's recent quarterly earnings report showed a 7.6% increase in revenue year-over-year, surpassing analyst estimates, with earnings per share of $0.99.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report)'s share price was down 1.8% on Tuesday . The stock traded as low as $67.38 and last traded at $67.87. Approximately 4,886,740 shares were traded during trading, a decline of 77% from the average daily volume of 21,253,385 shares. The stock had previously closed at $69.09.

Analysts Set New Price Targets

Several brokerages have recently issued reports on CSCO. Rosenblatt Securities restated a "buy" rating and issued a $87.00 price objective on shares of Cisco Systems in a research note on Thursday, August 14th. Barclays increased their price target on shares of Cisco Systems from $66.00 to $71.00 and gave the stock an "equal weight" rating in a report on Thursday, August 14th. Citigroup upped their price objective on shares of Cisco Systems from $68.00 to $71.00 and gave the company a "buy" rating in a report on Thursday, May 15th. Piper Sandler raised their target price on shares of Cisco Systems from $64.00 to $70.00 and gave the stock a "neutral" rating in a report on Thursday, August 14th. Finally, CICC Research initiated coverage on shares of Cisco Systems in a report on Monday, July 14th. They issued an "outperform" rating and a $78.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and ten have given a Hold rating to the company. According to data from MarketBeat, Cisco Systems has an average rating of "Moderate Buy" and an average target price of $74.53.

Cisco Systems Trading Down 1.6%

The stock has a market cap of $269.10 billion, a PE ratio of 25.94, a price-to-earnings-growth ratio of 2.93 and a beta of 0.99. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.92 and a current ratio of 1.01. The company has a 50 day moving average of $68.50 and a two-hundred day moving average of $63.80.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its quarterly earnings data on Wednesday, August 13th. The network equipment provider reported $0.99 EPS for the quarter, beating the consensus estimate of $0.98 by $0.01. The company had revenue of $14.67 billion for the quarter, compared to analyst estimates of $14.63 billion. Cisco Systems had a return on equity of 27.02% and a net margin of 18.45%.Cisco Systems's quarterly revenue was up 7.6% compared to the same quarter last year. During the same period last year, the company earned $0.87 earnings per share. Cisco Systems has set its Q1 2026 guidance at 0.970-0.990 EPS. FY 2026 guidance at 4.000-4.060 EPS. Sell-side analysts anticipate that Cisco Systems, Inc. will post 3.04 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 22nd. Shareholders of record on Friday, October 3rd will be given a dividend of $0.41 per share. The ex-dividend date is Friday, October 3rd. This represents a $1.64 dividend on an annualized basis and a yield of 2.4%. Cisco Systems's dividend payout ratio is currently 62.60%.

Insider Buying and Selling at Cisco Systems

In other news, CFO Richard Scott Herren sold 15,678 shares of the business's stock in a transaction dated Tuesday, June 17th. The shares were sold at an average price of $65.52, for a total transaction of $1,027,222.56. Following the completion of the sale, the chief financial officer owned 309,543 shares of the company's stock, valued at $20,281,257.36. The trade was a 4.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Charles Robbins sold 30,557 shares of the company's stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $66.63, for a total transaction of $2,036,012.91. Following the transaction, the chief executive officer owned 639,000 shares of the company's stock, valued at approximately $42,576,570. This trade represents a 4.56% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 119,095 shares of company stock valued at $7,841,167. Insiders own 0.01% of the company's stock.

Institutional Investors Weigh In On Cisco Systems

A number of large investors have recently modified their holdings of CSCO. Bare Financial Services Inc raised its holdings in Cisco Systems by 531.0% in the 2nd quarter. Bare Financial Services Inc now owns 366 shares of the network equipment provider's stock valued at $25,000 after acquiring an additional 308 shares during the last quarter. Legacy Investment Solutions LLC purchased a new stake in shares of Cisco Systems in the second quarter valued at approximately $28,000. Financial Connections Group Inc. grew its position in shares of Cisco Systems by 89.4% in the second quarter. Financial Connections Group Inc. now owns 409 shares of the network equipment provider's stock valued at $28,000 after purchasing an additional 193 shares in the last quarter. Mpwm Advisory Solutions LLC acquired a new stake in shares of Cisco Systems in the fourth quarter valued at approximately $26,000. Finally, Brown Shipley& Co Ltd purchased a new position in Cisco Systems during the second quarter worth approximately $32,000. Hedge funds and other institutional investors own 73.33% of the company's stock.

Cisco Systems Company Profile

Cisco Systems, Inc designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization.

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