Cisco Systems (NASDAQ:CSCO) Shares Up 2.1% - What's Next?

Key Points

• Cisco shares rose 2.1% in mid-day trading, with volume running above average as investors reacted to a mix of upbeat AI-related commentary and analyst attention.
• Wall Street sentiment remains constructive: several firms raised price targets, and the consensus rating is Moderate Buy with an average target of $123.14.
• Cisco recently beat quarterly earnings and revenue estimates and reaffirmed guidance, while also announcing a $0.42 quarterly dividend that implies a 1.5% annual yield.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report)'s share price shot up 2.1% during mid-day trading on Friday . The company traded as high as $113.23 and last traded at $111.94. 28,295,157 shares changed hands during trading, an increase of 18% from the average daily volume of 24,010,221 shares. The stock had previously closed at $109.66.

Key Stories Impacting Cisco Systems

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

• Positive Sentiment: Cisco is being highlighted as a key AI infrastructure play, with commentary arguing the company could benefit from rising demand for networking gear tied to AI buildouts. Price Prediction: Cisco Will Hit $170 on This Date
• Positive Sentiment: Investor sentiment is also supported by a favorable long-term track record under CEO Chuck Robbins, with a recent article pointing to strong returns since he took over in 2015. A $10,000 Investment in Cisco When Chuck Robbins Became CEO Is Worth This Much Today
• Neutral Sentiment: One analysis says Cisco stock looks fairly valued around current levels, suggesting upside may depend on future execution rather than an obvious valuation discount. Cisco (CSCO) Stock Looks About Right As Security Deal Talk Grows
• Neutral Sentiment: Cisco was also mentioned in a dividend-focused roundup of legacy tech names, reinforcing its appeal as a cash-generating, shareholder-friendly stock. 4 Tech Stocks Throwing Off Dividends
• Negative Sentiment: Technical traders are watching a weakening chart, with Cisco reportedly below its 50-day moving average and near key support, which could cap gains if buyers fail to step in. Cisco Systems (CSCO) Price Forecast: Correction Deepens as Key Support Nears

Wall Street Analysts Forecast Growth

CSCO has been the subject of several analyst reports. New Street Research boosted their price target on shares of Cisco Systems from $82.00 to $122.00 and gave the stock a "neutral" rating in a research note on Thursday, May 14th. Wells Fargo & Company raised their price objective on shares of Cisco Systems from $95.00 to $130.00 and gave the company an "overweight" rating in a research note on Thursday, May 14th. Zacks Research upgraded shares of Cisco Systems from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, June 30th. Truist Financial initiated coverage on Cisco Systems in a research report on Tuesday, March 31st. They issued a "buy" rating and a $94.00 price target on the stock. Finally, UBS Group lifted their price objective on Cisco Systems from $95.00 to $132.00 and gave the stock a "buy" rating in a research note on Thursday, May 14th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $123.14.

Cisco Systems Price Performance

The company's 50 day simple moving average is $117.09 and its 200 day simple moving average is $93.20. The company has a debt-to-equity ratio of 0.40, a current ratio of 0.92 and a quick ratio of 0.81. The stock has a market cap of $441.20 billion, a P/E ratio of 36.34, a P/E/G ratio of 2.85 and a beta of 1.02.

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. As a group, equities analysts forecast that Cisco Systems, Inc. will post 3.54 earnings per share for the current year.

Cisco Systems Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 22nd. Shareholders of record on Monday, July 6th will be paid a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Monday, July 6th. Cisco Systems's payout ratio is presently 54.55%.

Insider Buying and Selling

In other news, EVP Thimaya K. Subaiya sold 7,127 shares of the firm's stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $119.91, for a total transaction of $854,598.57. Following the sale, the executive vice president owned 140,857 shares of the company's stock, valued at $16,890,162.87. This trade represents a 4.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,400 shares of Cisco Systems stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $120.03, for a total value of $2,568,642.00. Following the transaction, the chief executive officer owned 637,085 shares in the company, valued at $76,469,312.55. This trade represents a 3.25% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 47,650 shares of company stock valued at $5,668,823. 0.01% of the stock is owned by company insiders.

Institutional Trading of Cisco Systems

Several hedge funds and other institutional investors have recently modified their holdings of the company. MidAtlantic Capital Management Inc. acquired a new stake in Cisco Systems in the 4th quarter valued at approximately $25,000. Intesa Sanpaolo Wealth Management bought a new position in shares of Cisco Systems during the 4th quarter worth approximately $25,000. Networth Advisors LLC grew its stake 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 worth $26,000 after acquiring an additional 246 shares in the last quarter. Financial Life Planners acquired a new stake in shares of Cisco Systems in the first quarter valued at approximately $27,000. Finally, Manning & Napier Advisors LLC lifted its position in shares of Cisco Systems by 137.0% in the first quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider's stock worth $27,000 after purchasing 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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