Cisco Systems (NASDAQ:CSCO) Stock Price Down 1.9% on Insider Selling

Key Points

• Cisco shares fell 1.9% on Wednesday after insider selling, trading as low as $116.94 before last changing hands at $117.33.
• EVP Thimaya K. Subaiya sold 7,127 shares and EVP Oliver Tuszik sold 2,607 shares, with both transactions executed under pre-arranged Rule 10b5-1 plans.
• Despite the dip, analysts remain generally positive on Cisco, with a Moderate Buy consensus and an average price target of $122.90; the company also recently beat earnings and raised guidance.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) shares dropped 1.9% on Wednesday following insider selling activity. The stock traded as low as $116.94 and last traded at $117.33. Approximately 18,000,280 shares changed hands during mid-day trading, a decline of 24% from the average daily volume of 23,583,004 shares. The stock had previously closed at $119.57.

Specifically, EVP Thimaya K. Subaiya sold 7,127 shares of the firm's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $119.91, for a total transaction of $854,598.57. Following the completion of the transaction, the executive vice president directly owned 140,857 shares in the company, valued at $16,890,162.87. This trade represents a 4.82% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,607 shares of the firm's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $121.12, for a total value of $315,759.84. Following the transaction, the executive vice president owned 172,727 shares of the company's stock, valued at $20,920,694.24. The trade was a 1.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

Several research firms recently commented on CSCO. Citigroup lifted their price objective on Cisco Systems from $90.00 to $112.00 and gave the stock a "buy" rating in a report on Thursday, May 14th. New Street Research lifted their price objective on Cisco Systems from $82.00 to $122.00 and gave the stock a "neutral" rating in a report on Thursday, May 14th. UBS Group lifted their price objective on Cisco Systems from $95.00 to $132.00 and gave the stock a "buy" rating in a report on Thursday, May 14th. Wall Street Zen downgraded Cisco Systems from a "buy" rating to a "hold" rating in a report on Saturday, March 14th. Finally, Zacks Research downgraded Cisco Systems from a "strong-buy" rating to a "hold" rating in a report on Monday, April 13th. 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 company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $122.90.

Cisco Systems News Summary

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

• Positive Sentiment: Cisco is being highlighted by analysts as a beneficiary of the AI networking boom, with recent coverage pointing to strong revenue growth, rising networking demand, and solid order momentum across segments. Cisco Systems Capitalizes on AI Networking Boom: More Upside Ahead?
• Positive Sentiment: Coverage of Cisco’s partnership with AT&T on an in-car entertainment platform adds another growth angle, reinforcing the company’s role in connected-services infrastructure. Cisco Systems Inc (CSCO) Partners With AT&T. It’s About Cars
• Positive Sentiment: Equinix’s expanded collaboration with Cisco and NVIDIA to deploy secure AI factories across data centers supports the view that Cisco is well positioned in enterprise AI infrastructure. Equinix Collaborates with Cisco and NVIDIA to Deploy Secure AI Factories Across Global Data Center Footprint
• Neutral Sentiment: Several articles this morning compare Cisco’s stock performance with other technology names and discuss whether the shares still look reasonably valued after a strong rally, which may keep investors focused on valuation rather than fundamentals. Cisco Systems (CSCO) Stock After 87% One-Year Rally Is The Price Still Reasonable
• Neutral Sentiment: One commentary argues that Cisco’s AI-driven rally may already be priced in, suggesting limited near-term upside if growth expectations cool. Cisco Systems: Still Winning The AI Buildout, But Now Everyone's Pricing It In (Rating Downgrade)
• Negative Sentiment: A Seeking Alpha piece specifically warns about the dangers of Cisco’s AI-induced rally, reflecting concerns that enthusiasm around the AI theme could make the stock vulnerable to a pullback. Cisco: The Dangers Of The AI-Induced Rally

Cisco Systems Trading Down 1.9%

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 stock has a market capitalization of $462.45 billion, a PE ratio of 38.09, a PEG ratio of 3.06 and a beta of 1.01. The stock has a 50-day moving average price of $103.91 and a two-hundred day moving average price of $87.19.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its quarterly earnings data 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. Cisco Systems had a return on equity of 28.44% and a net margin of 20.14%.The firm had revenue of $15.84 billion for the quarter, compared to analysts' expectations of $15.56 billion. During the same period in the previous year, the firm earned $0.96 EPS. The business's quarterly revenue was up 12.0% on a year-over-year basis. 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 business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 22nd. Stockholders of record on Monday, July 6th will be given a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend is Monday, July 6th. Cisco Systems's payout ratio is presently 54.55%.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Norges Bank purchased a new position in Cisco Systems in the 4th quarter worth approximately $4,473,272,000. Auto Owners Insurance Co lifted its holdings in Cisco Systems by 8,718.3% in 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 purchasing an additional 51,363,281 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in Cisco Systems by 103.2% in the 4th 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 purchasing an additional 14,874,407 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in Cisco Systems by 110.2% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 18,406,442 shares of the network equipment provider's stock worth $1,259,369,000 after purchasing an additional 9,648,265 shares in the last quarter. Finally, Franklin Resources Inc. lifted its holdings in Cisco Systems by 18.0% in the 4th quarter. Franklin Resources Inc. now owns 50,320,905 shares of the network equipment provider's stock worth $3,876,219,000 after purchasing an additional 7,679,422 shares in the last quarter. 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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