Cisco Systems (NASDAQ:CSCO) Stock Price Down 1.2% - Here's What Happened

Key Points

• Cisco shares fell 1.2% on Wednesday, trading as low as $119.03 amid lighter-than-average volume before closing near $119.70.
• The biggest news driver was the U.S. Supreme Court ending a lawsuit alleging Cisco helped China persecute Falun Gong members, removing a legal overhang for the stock. At the same time, coverage of Cisco’s Secure AI Factory and quantum networking efforts kept the company tied to AI infrastructure growth themes.
• Despite the dip, Cisco has seen broad analyst support, including several target-price hikes and a consensus Moderate Buy rating with a $122.90 price target. Recent earnings also beat estimates, and the company continues to pay a quarterly dividend.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report)'s stock price fell 1.2% during mid-day trading on Wednesday . The stock traded as low as $119.03 and last traded at $119.7040. 19,839,679 shares were traded during trading, a decline of 16% from the average session volume of 23,749,646 shares. The stock had previously closed at $121.15.

Key Cisco Systems News

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

• Positive Sentiment: The U.S. Supreme Court ended a lawsuit alleging Cisco helped China persecute Falun Gong members, removing a legal uncertainty that could have weighed on sentiment. US Supreme Court ends suit alleging Cisco helped China pursue Falun Gong
• Positive Sentiment: Coverage highlighted Cisco’s Secure AI Factory and quantum networking efforts as potential long-term growth drivers tied to AI infrastructure spending. How Cisco’s Secure AI Factory and Quantum Networking Bets Could Reshape the Cisco Systems (CSCO) Narrative
• Neutral Sentiment: Analyst- and broker-focused articles suggest Cisco remains a widely watched name, but they do not appear to signal a major near-term catalyst by themselves. Cisco (CSCO) Is Considered a Good Investment by Brokers: Is That True?
• Neutral Sentiment: Media interest remains high, reflecting investor focus on Cisco’s recent performance and AI-related growth story. Cisco Systems, Inc. (CSCO) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: One recent note said Cisco looks like a hold at around $121 because the stock has already run up sharply and is sitting close to a 52-week high, leaving limited room for error. Cisco at $121: Buy, Sell or Hold?
• Negative Sentiment: Another valuation-focused piece warned that Cisco’s strong rally and surging AI orders may already be pricing in a lot of good news, increasing the risk of a pullback if growth disappoints. Cisco Stock Looks Strong, But One Number Says Be Careful

Analyst Ratings Changes

A number of brokerages have recently issued reports on CSCO. Morgan Stanley raised their price objective on Cisco Systems from $120.00 to $130.00 and gave the stock an "overweight" rating in a research report on Friday, June 12th. HSBC raised shares of Cisco Systems from a "hold" rating to a "buy" rating and increased their target price for the company from $77.00 to $137.00 in a research report on Friday, May 15th. New Street Research upped their price objective on shares of Cisco Systems from $82.00 to $122.00 and gave the company a "neutral" rating in a research note on Thursday, May 14th. Barclays increased their price objective on shares of Cisco Systems from $76.00 to $121.00 and gave the stock an "equal weight" rating in a research report on Thursday, May 14th. Finally, CICC Research upped their price target on shares of Cisco Systems from $96.00 to $125.00 and gave the company an "outperform" rating in a research report on Monday, May 18th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $122.90.

Cisco Systems Trading Down 1.2%

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 fifty day simple moving average of $107.69 and a 200-day simple moving average of $88.71. The firm has a market cap of $471.81 billion, a P/E ratio of 38.86, a price-to-earnings-growth ratio of 3.10 and a beta of 1.01.

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

Cisco Systems Announces Dividend

The company also recently announced 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 is Monday, July 6th. This represents a $1.68 annualized dividend and a dividend yield of 1.4%. Cisco Systems's dividend payout ratio is currently 54.55%.

Insider Buying and Selling at Cisco Systems

In other Cisco Systems news, CEO Charles Robbins sold 21,400 shares of the company's 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 completion of the sale, the chief executive officer directly owned 637,085 shares of the company's stock, valued at approximately $76,469,312.55. This represents a 3.25% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,761 shares of Cisco Systems stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $114.61, for a total transaction of $316,438.21. Following the transaction, the executive vice president directly owned 180,877 shares in the company, valued at approximately $20,730,312.97. This represents a 1.50% 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. Insiders sold 47,650 shares of company stock valued at $5,668,823 in the last quarter. 0.01% of the stock is owned by company insiders.

Hedge Funds Weigh In On Cisco Systems

Several institutional investors have recently added to or reduced their stakes in the stock. MidAtlantic Capital Management Inc. purchased a new stake in shares of Cisco Systems during the 4th quarter worth approximately $25,000. Intesa Sanpaolo Wealth Management bought a new position in Cisco Systems during the fourth quarter valued at $25,000. Networth Advisors LLC raised its stake in shares of Cisco Systems by 276.4% in 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 period. Financial Life Planners purchased a new position in shares of Cisco Systems during the 1st quarter valued at $27,000. Finally, Manning & Napier Advisors LLC lifted its position in shares of Cisco Systems by 137.0% during the 1st 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. Institutional investors 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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