Cisco Systems (NASDAQ:CSCO) Shares Up 3.9% - Time to Buy?

Key Points

• Cisco shares rose 3.9% on Thursday, trading as high as $119.48 after closing at $113.82 the prior day, with volume slightly below average.
• Recent analyst action has been mostly positive, with several firms raising price targets; Cisco now has a consensus Moderate Buy rating and a consensus target of $123.14.
• The company posted strong quarterly results, beating EPS and revenue estimates, and also announced a $0.42 quarterly dividend payable July 22, equating to a 1.4% annual yield.

Shares of Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) were up 3.9% on Thursday . The stock traded as high as $119.48 and last traded at $118.31. Approximately 20,811,387 shares changed hands during mid-day trading, a decline of 13% from the average session volume of 23,966,516 shares. The stock had previously closed at $113.82.

Analyst Ratings Changes

Several research firms have issued reports on CSCO. Barclays increased their price objective on Cisco Systems from $76.00 to $121.00 and gave the stock an "equal weight" rating in a research note on Thursday, May 14th. Weiss Ratings raised shares of Cisco Systems from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, May 29th. New Street Research increased their target price on shares of Cisco Systems from $82.00 to $122.00 and gave the stock a "neutral" rating in a research report on Thursday, May 14th. Piper Sandler increased their target price 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. Finally, Bank of America lifted their price target on shares of Cisco Systems from $135.00 to $150.00 and gave the company a "buy" rating in a report on Monday, June 8th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, Cisco Systems has a consensus rating of "Moderate Buy" and a consensus price target of $123.14.

Cisco Systems Stock Performance

The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.81 and a current ratio of 0.92. The company has a market cap of $466.31 billion, a price-to-earnings ratio of 38.41, a PEG ratio of 2.85 and a beta of 1.02. The firm's 50-day moving average price is $114.06 and its 200 day moving average price is $91.59.

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, beating analysts' consensus estimates of $1.03 by $0.03. The company had revenue of $15.84 billion for the quarter, compared to the consensus estimate of $15.56 billion. Cisco Systems had a return on equity of 28.44% and a net margin of 20.14%.The firm's quarterly revenue was up 12.0% on a year-over-year basis. During the same quarter in the prior year, the business posted $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. On average, sell-side analysts anticipate that Cisco Systems, Inc. will post 3.54 EPS for the current year.

Cisco Systems Announces Dividend

The business 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. This represents a $1.68 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Monday, July 6th. Cisco Systems's dividend payout ratio is 54.55%.

Insider Transactions at Cisco Systems

In other news, EVP Oliver Tuszik sold 2,761 shares of the company's stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $114.61, for a total transaction of $316,438.21. Following the completion of the transaction, the executive vice president directly owned 180,877 shares of the company's stock, valued at $20,730,312.97. This represents a 1.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeetendra I. Patel sold 7,169 shares of the company's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $117.28, for a total value of $840,780.32. Following the transaction, the insider directly 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 47,650 shares of company stock worth $5,668,823. Company insiders own 0.01% of the company's stock.

Institutional Investors Weigh In On Cisco Systems

A number of institutional investors and hedge funds have recently modified their holdings of CSCO. Norges Bank bought a new stake in Cisco Systems in the 4th quarter valued at $4,473,272,000. Auto Owners Insurance Co increased its position in Cisco Systems by 8,718.3% during the 4th quarter. Auto Owners Insurance Co now owns 51,952,421 shares of the network equipment provider's stock worth $400,190,000 after buying an additional 51,363,281 shares during the period. Price T Rowe Associates Inc. MD lifted its holdings in shares of Cisco Systems by 103.2% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 29,289,151 shares of the network equipment provider's stock worth $2,256,144,000 after buying an additional 14,874,407 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Cisco Systems by 110.2% during the third quarter. Arrowstreet Capital Limited Partnership now owns 18,406,442 shares of the network equipment provider's stock worth $1,259,369,000 after buying an additional 9,648,265 shares in the last quarter. Finally, Franklin Resources Inc. boosted its position in shares of Cisco Systems by 18.0% in the fourth quarter. Franklin Resources Inc. now owns 50,320,905 shares of the network equipment provider's stock valued at $3,876,219,000 after acquiring an additional 7,679,422 shares during the period. 73.33% of the stock is owned by institutional investors.

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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