Cisco Systems (NASDAQ:CSCO) Stock Price Down 3.1% - Time to Sell?

Key Points

• Cisco shares fell 3.1% in mid-day trading, though the stock remains well above its 50-day and 200-day moving averages. Trading volume was slightly below average.
• Analyst sentiment is mostly positive: Bank of America raised its price target to $150 and reiterated a Buy rating, while Cisco’s overall consensus rating remains Moderate Buy with an average target around $120.18.
• Recent business updates were supportive, including better-than-expected quarterly earnings and revenue, plus guidance for fiscal 2026. The company also announced a quarterly dividend of $0.42 per share, yielding about 1.4% annually.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) dropped 3.1% during mid-day trading on Tuesday . The stock traded as low as $117.10 and last traded at $120.36. Approximately 22,454,900 shares changed hands during trading, a decline of 6% from the average daily volume of 23,774,318 shares. The stock had previously closed at $124.15.

Cisco Systems News Summary

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

• Positive Sentiment: Bank of America raised its price target on Cisco to $150 from $135 and reiterated a Buy rating, signaling confidence in additional upside for the stock. Benzinga report on Cisco price target increase
• Positive Sentiment: New industry data from Dell’Oro Group shows campus switch shipments grew double digits and prices rose due to component shortages, which could support Cisco’s networking hardware demand and pricing power. Dell’Oro campus switch shipment article
• Positive Sentiment: Cisco was highlighted in a market roundup of stocks with strong 2026 potential amid AI-driven momentum, reinforcing the bull case that the company can benefit from enterprise infrastructure spending. Yahoo Finance stock roundup article
• Neutral Sentiment: Several articles frame Cisco as a stock to hold or question whether growth can keep pace with its valuation, suggesting the recent rally may face resistance if investors want more proof of sustained AI and security growth. 247WallSt Cisco hold article
• Negative Sentiment: A Seeking Alpha piece argues Cisco’s stock is overvalued, which could be weighing on sentiment despite acknowledging its valuation is more justified than during the dot-com era. Seeking Alpha overvalued article

Analyst Upgrades and Downgrades

CSCO has been the topic of several recent analyst reports. Bank of America boosted their target price on Cisco Systems from $135.00 to $150.00 and gave the stock a "buy" rating in a research report on Monday. Rosenblatt Securities reiterated a "buy" rating and set a $100.00 target price on shares of Cisco Systems in a research report on Thursday, February 12th. Weiss Ratings upgraded Cisco Systems from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, May 29th. HSBC upgraded Cisco Systems from a "hold" rating to a "buy" rating and boosted their target price for the stock from $77.00 to $137.00 in a research report on Friday, May 15th. Finally, Citic Securities boosted their target price on Cisco Systems from $90.00 to $130.00 in a research report on Friday, May 15th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, Cisco Systems presently has an average rating of "Moderate Buy" and an average price target of $120.18.

Cisco Systems Stock Performance

The company has a market capitalization of $474.39 billion, a PE ratio of 39.08, a price-to-earnings-growth ratio of 3.10 and a beta of 1.01. 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's fifty day simple moving average is $98.89 and its 200-day simple moving average is $85.34.

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 (EPS) 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 business had revenue of $15.84 billion for the quarter, compared to analysts' expectations of $15.56 billion. During the same quarter last year, the firm earned $0.96 earnings per share. The business's 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 predict that Cisco Systems, Inc. will post 3.54 earnings per share for the current year.

Cisco Systems Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 22nd. Investors 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 dividend on an annualized basis and a yield of 1.4%. Cisco Systems's dividend payout ratio (DPR) is presently 54.55%.

Insider Transactions at Cisco Systems

In other Cisco Systems news, EVP Oliver Tuszik sold 3,132 shares of the firm's stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $79.74, for a total value of $249,745.68. Following the transaction, the executive vice president directly owned 188,613 shares of the company's stock, valued at $15,040,000.62. This trade represents a 1.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Charles Robbins sold 21,400 shares of the firm'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 transaction, the chief executive officer directly owned 637,085 shares in the company, valued at $76,469,312.55. This trade represents a 3.25% 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. Insiders have sold 51,324 shares of company stock valued at $5,559,834 in the last ninety days. Company insiders own 0.01% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Cozad Asset Management Inc. increased its holdings in Cisco Systems by 0.3% in the first quarter. Cozad Asset Management Inc. now owns 26,203 shares of the network equipment provider's stock valued at $2,033,000 after buying an additional 87 shares during the last quarter. Financial Insights Inc. increased its holdings in Cisco Systems by 1.5% in the first quarter. Financial Insights Inc. now owns 6,220 shares of the network equipment provider's stock valued at $483,000 after buying an additional 92 shares during the last quarter. Signature Resources Capital Management LLC increased its holdings in Cisco Systems by 2.3% in the first quarter. Signature Resources Capital Management LLC now owns 5,061 shares of the network equipment provider's stock valued at $393,000 after buying an additional 116 shares during the last quarter. Smithfield Trust Co increased its holdings in Cisco Systems by 0.3% in the fourth quarter. Smithfield Trust Co now owns 33,666 shares of the network equipment provider's stock valued at $2,596,000 after buying an additional 117 shares during the last quarter. Finally, Pacific Sage Partners LLC increased its holdings in Cisco Systems by 0.7% in the first quarter. Pacific Sage Partners LLC now owns 16,185 shares of the network equipment provider's stock valued at $1,256,000 after buying an additional 118 shares during 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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