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

Key Points

• Cisco shares rose 1.5% on Friday, trading as high as $121.43 after heavier-than-usual volume. The move pushed the stock further above its recent closing price of $118.64.
• Wall Street sentiment remains bullish after several firms raised price targets, including Bank of America to $135 and Rosenblatt to $150, both keeping Buy ratings. Analysts are increasingly optimistic about Cisco’s exposure to AI-driven networking and security spending.
• Recent earnings beat expectations, with Cisco reporting $1.06 EPS on $15.84 billion in revenue, both above estimates. The company also issued upbeat guidance for Q4 2026 and FY 2026, supporting the case that its rally has fundamental backing.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report)'s share price shot up 1.5% on Friday . The company traded as high as $121.43 and last traded at $120.42. 41,589,965 shares changed hands during mid-day trading, an increase of 77% from the average session volume of 23,546,248 shares. The stock had previously closed at $118.64.

Key Stories Impacting Cisco Systems

Here are the key news stories impacting Cisco Systems this week:

• Positive Sentiment: Bank of America raised its price target on Cisco to $135 from $114 and reiterated a Buy rating, citing stronger demand for high-speed optical networking gear tied to AI infrastructure spending. BofA raises Cisco, Ciena targets as AI optics boom accelerates
• Positive Sentiment: Rosenblatt also lifted its price target on Cisco to $150 from $100 and kept a Buy rating after Cisco’s latest quarterly results, reinforcing optimism around earnings and guidance. Rosenblatt Raises its Price Target on Cisco Systems (CSCO)
• Positive Sentiment: Recent coverage continues to frame Cisco as a beneficiary of AI-driven networking and security spending, with multiple stories highlighting record results and strong momentum. AI Buildout Fuels Record Results for These Companies
• Positive Sentiment: Cisco joined the EnterpriseClaw AI automation platform alongside NVIDIA, Okta, and OpenAI, reinforcing its security and AI relevance in enterprise workflows. Cisco Joins EnterpriseClaw To Link AI Automation With Security And Valuation Risks
• Neutral Sentiment: Commentary pieces are highlighting Cisco as a “throwback” tech stock that still fits into the AI trade, but these articles are mostly market commentary rather than new fundamentals. Dell, Cisco: How 'throwback' tech stocks fit into the AI trade
• Neutral Sentiment: CEO Charles Robbins sold 21,400 shares under a pre-arranged 10b5-1 plan, which is notable but does not necessarily point to changing fundamentals. SEC filing
• Neutral Sentiment: Analysts and media reports continue to note that Cisco has outperformed the broader technology sector, but that view largely reflects recent price strength already in place. Cisco Systems Stock: Is CSCO Outperforming the Technology Sector?

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on CSCO. Citic Securities raised their price target on shares of Cisco Systems from $90.00 to $130.00 in a report on Friday, May 15th. Wells Fargo & Company lifted their target price on shares of Cisco Systems from $95.00 to $130.00 and gave the stock an "overweight" rating in a report on Thursday, May 14th. Citigroup lifted their target price on shares of Cisco Systems from $90.00 to $112.00 and gave the stock a "buy" rating in a report on Thursday, May 14th. 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. Finally, KeyCorp lifted their target price on shares of Cisco Systems from $87.00 to $125.00 and gave the stock an "overweight" rating in a report on Thursday, May 14th. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $119.09.

Cisco Systems Stock Up 1.5%

The business's fifty day simple moving average is $92.59 and its 200 day simple moving average is $82.92. 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 cap of $474.63 billion, a price-to-earnings ratio of 39.10, a price-to-earnings-growth ratio of 3.14 and a beta of 0.92.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last announced its quarterly earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share for the quarter, topping analysts' consensus estimates of $1.03 by $0.03. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The company had revenue of $15.84 billion for the quarter, compared to analysts' expectations of $15.56 billion. During the same period last year, the firm posted $0.96 earnings per share. The business's quarterly revenue was up 12.0% compared to the same quarter last year. 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. Equities analysts forecast that Cisco Systems, Inc. will post 3.44 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, July 22nd. Stockholders of record on Monday, July 6th will be issued a $0.42 dividend. The ex-dividend date of this dividend is Monday, July 6th. This represents a $1.68 annualized dividend and a dividend yield of 1.4%. Cisco Systems's payout ratio is 54.55%.

Insider Buying and Selling

In other news, EVP Thimaya K. Subaiya sold 1,744 shares of the business's stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $77.07, for a total value of $134,410.08. Following the completion of the transaction, the executive vice president owned 156,693 shares of the company's stock, valued at $12,076,329.51. The trade was a 1.10% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Charles Robbins sold 21,400 shares of the business's stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $120.03, for a total transaction of $2,568,642.00. Following the completion of the transaction, the chief executive officer directly owned 637,085 shares of the company's stock, valued at $76,469,312.55. This trade represents a 3.25% decrease in their position. 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 51,324 shares of company stock worth $5,559,834 over the last ninety days. Insiders own 0.01% of the company's stock.

Hedge Funds Weigh In On Cisco Systems

Institutional investors and hedge funds have recently made changes to their positions in the company. MidAtlantic Capital Management Inc. bought a new stake in Cisco Systems in the 4th quarter valued at $25,000. Intesa Sanpaolo Wealth Management bought a new stake in Cisco Systems in the 4th quarter valued at $25,000. Networth Advisors LLC lifted its position in Cisco Systems by 276.4% in the 1st quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider's stock valued at $26,000 after acquiring an additional 246 shares in the last quarter. Financial Life Planners bought a new stake in Cisco Systems in the 1st quarter valued at $27,000. Finally, Manning & Napier Advisors LLC lifted its position in Cisco Systems by 137.0% in 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 in the last quarter. Institutional investors and hedge funds own 73.33% of the company's stock.

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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