Cisco Systems (NASDAQ:CSCO) Stock Price Down 4.4% - Here's What Happened

Key Points

• Cisco shares fell 4.4% on Friday, trading as low as $112.86 after closing at $118.97, on unusually heavy volume of about 50.1 million shares.
• Despite the pullback, analysts remain broadly constructive: KeyCorp raised its target to $130, while the overall consensus is a Moderate Buy with an average price target of $123.14.
• Cisco recently beat quarterly estimates, reporting $1.06 EPS on $15.84 billion in revenue, and it also declared a $0.42 quarterly dividend payable July 22 for a 1.5% annualized yield.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report)'s stock price traded down 4.4% during trading on Friday . The company traded as low as $112.86 and last traded at $113.77. Approximately 50,102,184 shares changed hands during trading, an increase of 109% from the average session volume of 24,016,744 shares. The stock had previously closed at $118.97.

More Cisco Systems News

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

• Positive Sentiment: KeyCorp raised its price target on Cisco to $130 and reiterated an overweight rating, signaling continued analyst confidence in upside potential.
• Positive Sentiment: Coverage around Cisco’s AI networking and Acacia optics business pointed to stronger execution in 800G AI infrastructure, which could support future revenue growth.
• Positive Sentiment: A valuation update nudged Cisco’s fair value estimate higher, suggesting improving expectations tied to AI networking, campus refresh activity, and optical demand.
• Neutral Sentiment: Q1 earnings roundup coverage placed Cisco alongside other IT and tech names, with investors comparing its growth and guidance to peers rather than reacting to a major new catalyst.
• Neutral Sentiment: Several articles framed Cisco as a value or quality tech name in a volatile sector, which supports longer-term interest but does not by itself change the near-term thesis.
• Negative Sentiment: Some commentary emphasized valuation concerns and the challenge of maintaining high-margin growth as Cisco shifts toward AI-related revenue, which could limit further upside if execution slows.

Analysts Set New Price Targets

Several equities research analysts have weighed in on CSCO shares. The Goldman Sachs Group raised their price target on Cisco Systems from $116.00 to $125.00 and gave the stock a "neutral" rating in a report on Wednesday, June 3rd. Barclays increased their price objective on shares of Cisco Systems from $76.00 to $121.00 and gave the company an "equal weight" rating in a research report on Thursday, May 14th. Bank of America boosted their target price on shares of Cisco Systems from $135.00 to $150.00 and gave the stock a "buy" rating in a research report on Monday, June 8th. Zacks Research downgraded shares of Cisco Systems from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. Finally, CICC Research boosted their price objective on shares of Cisco Systems from $96.00 to $125.00 and gave the company an "outperform" rating in a report on Monday, May 18th. Two 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 stock. According to data from MarketBeat, Cisco Systems currently has an average rating of "Moderate Buy" and an average target price of $123.14.

Cisco Systems Stock Down 4.4%

The stock has a market cap of $448.42 billion, a price-to-earnings ratio of 36.94, a PEG ratio of 3.06 and a beta of 1.01. The business's 50 day moving average is $109.17 and its 200-day moving average is $89.29. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.81 and a current ratio of 0.92.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.03 by $0.03. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The business had revenue of $15.84 billion during the quarter, compared to analyst estimates of $15.56 billion. During the same quarter in the prior year, the firm earned $0.96 earnings per share. The company's revenue for the quarter 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, sell-side analysts predict that Cisco Systems, Inc. will post 3.53 EPS for the current fiscal year.

Cisco Systems Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 22nd. Shareholders of record on Monday, July 6th will be paid a dividend of $0.42 per share. The ex-dividend date is Monday, July 6th. This represents a $1.68 dividend on an annualized basis and a yield of 1.5%. Cisco Systems's dividend payout ratio is 54.55%.

Insiders Place Their Bets

In other Cisco Systems news, EVP Thimaya K. Subaiya sold 7,127 shares of the 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 sale, the executive vice president directly owned 140,857 shares of the company's stock, valued at approximately $16,890,162.87. This represents a 4.82% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. 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 completion of the sale, the executive vice president owned 172,727 shares in the company, valued at approximately $20,920,694.24. This represents a 1.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 valued at $5,668,823. 0.01% of the stock is owned by company insiders.

Hedge Funds Weigh In On Cisco Systems

Several large investors have recently bought and sold shares of the stock. World Investment Advisors grew its holdings in Cisco Systems by 15.4% during the 4th quarter. World Investment Advisors now owns 198,549 shares of the network equipment provider's stock valued at $13,905,000 after buying an additional 26,455 shares in the last quarter. WCG Wealth Advisors LLC lifted its holdings in shares of Cisco Systems by 101.8% in the fourth quarter. WCG Wealth Advisors LLC now owns 107,306 shares of the network equipment provider's stock worth $8,266,000 after buying an additional 54,141 shares in the last quarter. Vise Technologies Inc. boosted its position in shares of Cisco Systems by 47.1% in the fourth quarter. Vise Technologies Inc. now owns 200,341 shares of the network equipment provider's stock valued at $15,432,000 after acquiring an additional 64,144 shares during the period. Truist Financial Corp boosted its position in shares of Cisco Systems by 6.8% in the fourth quarter. Truist Financial Corp now owns 4,311,098 shares of the network equipment provider's stock valued at $332,084,000 after acquiring an additional 275,456 shares during the period. Finally, Principal Financial Group Inc. grew its stake in Cisco Systems by 3.2% during the fourth quarter. Principal Financial Group Inc. now owns 4,873,274 shares of the network equipment provider's stock valued at $375,388,000 after acquiring an additional 151,395 shares in the last quarter. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.