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

Key Points

• Cisco shares rose 2.1% to $115.99, with trading volume below average. The stock remains well above its 200-day moving average, though slightly below its 50-day average.
• Analyst sentiment is broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $123.14; several firms recently raised their targets to between $125 and $150.
• Cisco exceeded quarterly expectations, reporting $1.06 in EPS and $15.84 billion in revenue, while revenue increased 12% year over year. The company also maintains a $0.42 quarterly dividend, yielding about 1.4%.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) was up 2.1% on Friday . The stock traded as high as $117.25 and last traded at $115.99. 18,777,406 shares traded hands during trading, a decline of 21% from the average session volume of 23,629,416 shares. The stock had previously closed at $113.56.

Wall Street Analysts Forecast Growth

CSCO has been the subject of a number of research reports. CICC Research upped their price objective on Cisco Systems from $96.00 to $125.00 and gave the company an "outperform" rating in a research report on Monday, May 18th. Evercore boosted their price target on Cisco Systems from $110.00 to $150.00 and gave the company an "outperform" rating in a research note on Thursday, May 14th. UBS Group increased their price objective on shares of Cisco Systems from $95.00 to $132.00 and gave the stock a "buy" rating in a research note on Thursday, May 14th. Bank of America boosted their price objective on shares of Cisco Systems from $135.00 to $150.00 and gave the company a "buy" rating in a research report on Monday, June 8th. Finally, Citigroup raised their target price on Cisco Systems from $90.00 to $112.00 and gave the stock a "buy" rating in a report on Thursday, May 14th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $123.14.

Cisco Systems Trading Up 2.1%

The stock's 50-day simple moving average is $117.75 and its two-hundred day simple moving average is $95.81. 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 firm has a market capitalization of $457.17 billion, a P/E ratio of 37.66, a price-to-earnings-growth ratio of 2.87 and a beta of 1.02.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last announced its quarterly earnings data on Wednesday, May 13th. The network equipment provider reported $1.06 EPS for the quarter, beating the consensus estimate of $1.03 by $0.03. The firm had revenue of $15.84 billion for the quarter, compared to the consensus estimate of $15.56 billion. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The company's revenue was up 12.0% on a year-over-year basis. During the same period last year, the firm earned $0.96 EPS. 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 research analysts expect that Cisco Systems, Inc. will post 3.54 EPS for the current year.

Cisco Systems Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 22nd. Stockholders of record on Monday, July 6th were paid a $0.42 dividend. The ex-dividend date of this dividend was Monday, July 6th. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.4%. Cisco Systems's dividend payout ratio is 54.55%.

Insider Activity

In related news, insider Jeetendra I. Patel sold 7,169 shares of Cisco Systems stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $117.28, for a total transaction of $840,780.32. Following the sale, the insider owned 246,737 shares of the company's stock, valued at approximately $28,937,315.36. This trade represents a 2.82% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,607 shares of the business's stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $121.12, for a total value of $315,759.84. Following the completion of the transaction, the executive vice president directly owned 172,727 shares in the company, valued at approximately $20,920,694.24. This represents a 1.49% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 47,650 shares of company stock valued at $5,668,823 in the last three months. 0.01% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cisco Systems

Several institutional investors have recently bought and sold shares of CSCO. Intesa Sanpaolo Wealth Management purchased a new position in shares of Cisco Systems during the fourth quarter valued at about $25,000. MidAtlantic Capital Management Inc. purchased a new stake in shares of Cisco Systems in the fourth quarter worth about $25,000. Networth Advisors LLC boosted its stake in Cisco Systems by 276.4% during the first 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 during the last quarter. Manning & Napier Advisors LLC boosted its stake in Cisco Systems by 137.0% during the first quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider's stock valued at $27,000 after buying an additional 200 shares during the last quarter. Finally, Financial Life Planners purchased a new position in Cisco Systems during the 1st quarter valued at approximately $27,000. 73.33% of the stock is 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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