Cisco Systems (NASDAQ:CSCO) Shares Up 3.5% - Here's Why

Key Points

• Cisco shares rose 3.5% on Monday, reaching as high as $118.18 after closing at $113.77 the prior session. Trading volume was lighter than average, with about 21.2 million shares changing hands.
• Analyst sentiment remains supportive overall, with multiple firms lifting price targets and the stock carrying an average Moderate Buy rating and a consensus target of $123.14. New Street, Argus, KeyCorp and Piper Sandler all recently updated their outlooks.
• Cisco’s latest earnings topped estimates, and the company also raised guidance for Q4 2026 and FY 2026. It additionally announced a quarterly dividend of $0.42 per share, payable July 22, for an annualized yield of about 1.4%.

Shares of Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) traded up 3.5% on Monday . The stock traded as high as $118.18 and last traded at $117.70. Approximately 21,164,695 shares changed hands during mid-day trading, a decline of 12% from the average daily volume of 24,009,654 shares. The stock had previously closed at $113.77.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on CSCO. Wall Street Zen lowered Cisco Systems from a "buy" rating to a "hold" rating in a research report on Saturday, March 14th. 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 report on Thursday, May 14th. Argus increased their price target on shares of Cisco Systems from $100.00 to $150.00 and gave the company a "buy" rating in a research report on Tuesday, May 19th. KeyCorp raised their price objective on shares of Cisco Systems from $125.00 to $130.00 and gave the stock an "overweight" rating in a report on Thursday. Finally, Piper Sandler lifted their price objective on shares of Cisco Systems from $86.00 to $132.00 and gave the stock a "neutral" rating in a research report on Thursday, May 14th. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $123.14.

Cisco Systems Stock Performance

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 company has a 50 day simple moving average of $109.79 and a 200-day simple moving average of $89.54. The stock has a market capitalization of $463.91 billion, a P/E ratio of 38.21, a price-to-earnings-growth ratio of 2.90 and a beta of 1.01.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its quarterly earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share for the quarter, topping the consensus estimate of $1.03 by $0.03. Cisco Systems had a return on equity of 28.44% and a net margin of 20.14%.The company had revenue of $15.84 billion during the quarter, compared to the consensus estimate of $15.56 billion. During the same quarter in the prior year, the company earned $0.96 EPS. The firm'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. On average, equities analysts forecast that Cisco Systems, Inc. will post 3.54 EPS for the current year.

Cisco Systems Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 22nd. Stockholders of record on Monday, July 6th will be paid a $0.42 dividend. The ex-dividend date is Monday, July 6th. This represents a $1.68 annualized dividend and a dividend yield of 1.4%. Cisco Systems's dividend payout ratio (DPR) is presently 54.55%.

Insider Buying and Selling

In related news, EVP Thimaya K. Subaiya sold 7,127 shares of the firm's stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $119.91, for a total value of $854,598.57. Following the completion of the transaction, the executive vice president directly owned 140,857 shares of the company's stock, valued at approximately $16,890,162.87. This trade represents a 4.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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 that occurred 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 owned 637,085 shares of the company's stock, valued at $76,469,312.55. This represents a 3.25% 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. Over the last quarter, insiders have sold 47,650 shares of company stock valued at $5,668,823. Corporate insiders own 0.01% of the company's stock.

Institutional Investors Weigh In On Cisco Systems

Several institutional investors have recently made changes to their positions in the stock. MidAtlantic Capital Management Inc. purchased a new stake in Cisco Systems during the 4th quarter worth about $25,000. Intesa Sanpaolo Wealth Management purchased a new position in Cisco Systems during the 4th quarter valued at about $25,000. Networth Advisors LLC grew its holdings in 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 bought a new stake in shares of Cisco Systems during the first quarter valued at about $27,000. Finally, Manning & Napier Advisors LLC increased its position in shares of 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 period. Hedge funds and other institutional investors own 73.33% of the company's stock.

Cisco Systems Company Profile

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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