Cisco Systems (NASDAQ:CSCO) Shares Up 1.5% - Still a Buy?

Key Points

• Cisco Systems' stock saw a 1.5% increase, closing at $68.91 with a total volume of 18.9 million shares traded, which is 10% below the average.
• Recent analyst ratings show one Strong Buy, fourteen Buy, and ten Hold ratings, with a consensus target price of $74.53; Bank of America raised its price target to $85.00.
• Cisco's quarterly earnings surpassed expectations with $0.99 EPS on revenues of $14.67 billion, while the company also announced a dividend of $0.41 per share scheduled for October 22nd.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) traded up 1.5% during mid-day trading on Monday . The company traded as high as $68.95 and last traded at $68.91. 18,886,763 shares were traded during trading, a decline of 10% from the average session volume of 20,957,623 shares. The stock had previously closed at $67.92.

Analysts Set New Price Targets

Several brokerages have recently issued reports on CSCO. Wolfe Research initiated coverage on shares of Cisco Systems in a research report on Tuesday, July 8th. They set a "peer perform" rating for the company. Hsbc Global Res cut Cisco Systems from a "strong-buy" rating to a "hold" rating in a report on Friday, August 15th. JPMorgan Chase & Co. boosted their price target on Cisco Systems from $73.00 to $78.00 and gave the company an "overweight" rating in a report on Thursday, July 17th. Bank of America raised their price target on shares of Cisco Systems from $76.00 to $85.00 and gave the stock a "buy" rating in a research note on Thursday, August 14th. Finally, Morgan Stanley boosted their price objective on shares of Cisco Systems from $67.00 to $70.00 and gave the stock an "overweight" rating in a research report on Friday, July 18th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and ten have issued a Hold rating to the company's stock. According to MarketBeat.com, Cisco Systems currently has an average rating of "Moderate Buy" and a consensus target price of $74.53.

Cisco Systems Price Performance

The company's 50-day simple moving average is $68.12 and its 200-day simple moving average is $64.68. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.00 and a quick ratio of 0.91. The stock has a market capitalization of $272.42 billion, a price-to-earnings ratio of 26.30, a P/E/G ratio of 2.85 and a beta of 0.97.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last announced its earnings results on Wednesday, August 13th. The network equipment provider reported $0.99 earnings per share for the quarter, topping analysts' consensus estimates 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 27.06% and a net margin of 18.45%.The firm's quarterly revenue was up 7.6% compared to the same quarter last year. During the same quarter 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. Research analysts forecast that Cisco Systems, Inc. will post 3.04 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

The company also recently announced 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 of this dividend is Friday, October 3rd. This represents a $1.64 annualized dividend and a dividend yield of 2.4%. Cisco Systems's dividend payout ratio (DPR) is currently 62.60%.

Insider Activity at Cisco Systems

In other news, EVP Oliver Tuszik sold 17,526 shares of the stock in a transaction on Friday, September 19th. The stock was sold at an average price of $67.95, for a total transaction of $1,190,891.70. Following the completion of the transaction, the executive vice president owned 198,855 shares in the company, valued at approximately $13,512,197.25. This represents a 8.10% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Charles Robbins sold 30,557 shares of the business's stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $66.63, for a total value of $2,036,012.91. Following the completion of the sale, the chief executive officer owned 639,000 shares in the company, valued at $42,576,570. This represents a 4.56% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 82,965 shares of company stock worth $5,559,996. 0.01% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cisco Systems

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Brighton Jones LLC increased its holdings in Cisco Systems by 49.5% during the 4th quarter. Brighton Jones LLC now owns 74,187 shares of the network equipment provider's stock worth $4,392,000 after acquiring an additional 24,562 shares during the period. Revolve Wealth Partners LLC increased its holdings in shares of Cisco Systems by 37.0% in the fourth quarter. Revolve Wealth Partners LLC now owns 9,156 shares of the network equipment provider's stock worth $542,000 after purchasing an additional 2,474 shares during the period. Sivia Capital Partners LLC raised its position in shares of Cisco Systems by 12.6% in the first quarter. Sivia Capital Partners LLC now owns 9,466 shares of the network equipment provider's stock worth $584,000 after buying an additional 1,061 shares in the last quarter. Orrstown Financial Services Inc. raised its position in shares of Cisco Systems by 5.0% in the first quarter. Orrstown Financial Services Inc. now owns 12,546 shares of the network equipment provider's stock worth $774,000 after buying an additional 592 shares in the last quarter. Finally, Regent Peak Wealth Advisors LLC boosted its stake in Cisco Systems by 2.9% during the first quarter. Regent Peak Wealth Advisors LLC now owns 7,784 shares of the network equipment provider's stock valued at $480,000 after buying an additional 219 shares during the period. 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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