Cisco Systems (NASDAQ:CSCO) Shares Down 2.2% - Time to Sell?

Key Points

• Cisco Systems' stock dropped by 2.2%, closing at $66.50, with a significant decline in trading volume compared to its average.
• According to various analysts, Cisco has received mixed ratings, with price targets ranging from $69.00 to $87.00 and a consensus rating of "Moderate Buy."
• The company recently announced a quarterly dividend of $0.41 per share, representing an annual yield of 2.5%, with a payout ratio of 62.60%.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report)'s stock price dropped 2.2% during mid-day trading on Friday . The company traded as low as $66.75 and last traded at $66.50. Approximately 5,535,097 shares changed hands during mid-day trading, a decline of 74% from the average daily volume of 21,160,133 shares. The stock had previously closed at $67.99.

Analyst Upgrades and Downgrades

CSCO has been the topic of a number of analyst reports. Wells Fargo & Company lifted their price target on Cisco Systems from $75.00 to $83.00 and gave the company an "overweight" rating in a report on Thursday, August 14th. HSBC reiterated a "hold" rating and issued a $69.00 price target on shares of Cisco Systems in a report on Friday, August 15th. KeyCorp initiated coverage on Cisco Systems in a report on Thursday, June 26th. They issued an "overweight" rating and a $77.00 price target on the stock. Rosenblatt Securities reissued a "buy" rating and issued a $87.00 price objective on shares of Cisco Systems in a research report on Thursday, August 14th. Finally, William Blair upgraded Cisco Systems to a "hold" rating in a research note on Thursday, August 14th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and ten have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $74.53.

Cisco Systems Price Performance

The company has a quick ratio of 0.92, a current ratio of 1.01 and a debt-to-equity ratio of 0.49. The company has a market cap of $264.92 billion, a PE ratio of 25.53, a P/E/G ratio of 2.87 and a beta of 0.99. The stock has a 50-day simple moving average of $68.47 and a 200 day simple moving average of $63.87.

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

Cisco Systems Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 22nd. Investors of record on Friday, October 3rd will be paid a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend is Friday, October 3rd. Cisco Systems's payout ratio is presently 62.60%.

Insider Activity

In related news, EVP Thimaya K. Subaiya sold 8,726 shares of the business's stock in a transaction on Tuesday, June 17th. The stock was sold at an average price of $65.54, for a total transaction of $571,902.04. Following the completion of the transaction, the executive vice president directly owned 174,669 shares of the company's stock, valued at $11,447,806.26. The trade was a 4.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Charles Robbins sold 30,557 shares of Cisco Systems stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $66.63, for a total value of $2,036,012.91. Following the sale, the chief executive officer directly owned 639,000 shares of the company's stock, valued at $42,576,570. This trade represents a 4.56% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 89,311 shares of company stock worth $5,916,823 over the last three months. Company insiders own 0.01% of the company's stock.

Institutional Trading of Cisco Systems

A number of institutional investors have recently bought and sold shares of CSCO. Kornitzer Capital Management Inc. KS lifted its holdings in shares of Cisco Systems by 0.7% in the 1st quarter. Kornitzer Capital Management Inc. KS now owns 892,064 shares of the network equipment provider's stock valued at $55,049,000 after purchasing an additional 6,501 shares during the last quarter. Golden State Wealth Management LLC lifted its holdings in shares of Cisco Systems by 10.8% in the 1st quarter. Golden State Wealth Management LLC now owns 6,298 shares of the network equipment provider's stock valued at $389,000 after purchasing an additional 612 shares during the last quarter. Wealth Enhancement Advisory Services LLC lifted its holdings in shares of Cisco Systems by 28.9% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 4,037,909 shares of the network equipment provider's stock valued at $249,180,000 after purchasing an additional 904,548 shares during the last quarter. Investment Management Corp of Ontario lifted its holdings in shares of Cisco Systems by 44.6% in the 4th quarter. Investment Management Corp of Ontario now owns 193,478 shares of the network equipment provider's stock valued at $11,454,000 after purchasing an additional 59,680 shares during the last quarter. Finally, IFP Advisors Inc lifted its holdings in shares of Cisco Systems by 2.6% in the 1st quarter. IFP Advisors Inc now owns 111,510 shares of the network equipment provider's stock valued at $6,882,000 after purchasing an additional 2,839 shares during the last quarter. 73.33% of the stock is owned by hedge funds and other institutional investors.

About Cisco Systems

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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