Cisco Systems (NASDAQ:CSCO) Shares Up 1.3% - Here's Why

Key Points

• Cisco shares rose 1.3% to $111.04, despite trading volume coming in 22% below the average session volume.
• Analysts raised several price targets, with the stock retaining a “Moderate Buy” consensus rating and an average target price of $129.43.
• Cisco beat quarterly expectations with $1.22 in EPS and $17.25 billion in revenue, up 17.6% year over year, and declared a quarterly dividend of $0.42 per share.

Shares of Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) traded up 1.3% during trading on Friday . The stock traded as high as $112.19 and last traded at $111.04. 18,385,650 shares were traded during trading, a decline of 22% from the average session volume of 23,605,814 shares. The stock had previously closed at $109.59.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on CSCO shares. Piper Sandler lifted their target price on shares of Cisco Systems from $86.00 to $132.00 and gave the stock a "neutral" rating in a report on Thursday, May 14th. New Street Research increased their price target on shares of Cisco Systems from $82.00 to $122.00 and gave the company a "neutral" rating in a report on Thursday, May 14th. Barclays boosted their price objective on shares of Cisco Systems from $121.00 to $123.00 and gave the stock an "equal weight" rating in a report on Thursday, August 13th. Wells Fargo & Company increased their target price on Cisco Systems from $130.00 to $150.00 and gave the company an "overweight" rating in a research note on Thursday, August 13th. Finally, The Goldman Sachs Group lifted their target price on Cisco Systems from $116.00 to $125.00 and gave the stock a "neutral" rating in a report on Wednesday, June 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, Cisco Systems presently has a consensus rating of "Moderate Buy" and an average target price of $129.43.

Cisco Systems Stock Performance

The business's 50 day simple moving average is $116.22 and its two-hundred day simple moving average is $100.16. The firm has a market capitalization of $437.66 billion, a PE ratio of 33.25, a price-to-earnings-growth ratio of 2.35 and a beta of 1.02. The company has a current ratio of 0.93, a quick ratio of 0.79 and a debt-to-equity ratio of 0.39.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.17 by $0.05. The firm had revenue of $17.25 billion for the quarter, compared to the consensus estimate of $16.84 billion. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%.The company's revenue for the quarter was up 17.6% on a year-over-year basis. During the same period last year, the business posted $0.99 EPS. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. Research analysts expect that Cisco Systems, Inc. will post 4.09 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd will be paid a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date is Friday, October 2nd. Cisco Systems's payout ratio is currently 50.30%.

Insider Activity

In other news, EVP Thimaya K. Subaiya sold 5,832 shares of the stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $111.47, for a total value of $650,093.04. Following the transaction, the executive vice president owned 128,382 shares in the company, valued at $14,310,741.54. This represents a 4.35% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,760 shares of the firm's stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $112.46, for a total transaction of $310,389.60. Following the completion of the transaction, the executive vice president directly owned 165,276 shares in the company, valued at approximately $18,586,938.96. The trade was a 1.64% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 53,611 shares of company stock worth $6,066,680. Company insiders own 0.01% of the company's stock.

Institutional Investors Weigh In On Cisco Systems

Hedge funds and other institutional investors have recently modified their holdings of the stock. MidAtlantic Capital Management Inc. purchased a new stake in Cisco Systems in the fourth quarter worth about $25,000. Intesa Sanpaolo Wealth Management bought a new position in shares of Cisco Systems in the fourth quarter worth about $25,000. Networth Advisors LLC lifted its position in shares of Cisco Systems by 276.4% during the 1st 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 purchased a new position in shares of Cisco Systems during the 1st quarter valued at about $27,000. Finally, Manning & Napier Advisors LLC grew 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 valued at $27,000 after acquiring an additional 200 shares during the period. 73.33% of the stock is currently owned by hedge funds and other institutional investors.

About Cisco Systems

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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