Cisco Systems (NASDAQ:CSCO) Stock Price Up 1.9% - Should You Buy?

Key Points

• Shares of Cisco Systems (NASDAQ:CSCO) rose 1.9% to $70.33, with a significant trading volume increase of 50% compared to its average.
• Analysts have given Cisco a consensus rating of "Moderate Buy" with an average target price of $74.53, reflecting recent upgrades from various financial institutions.
• The company reported quarterly earnings of $0.99 per share, slightly exceeding analysts' expectations, with revenues of $14.67 billion, marking a 7.6% increase year-over-year.

Shares of Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) rose 1.9% during mid-day trading on Wednesday . The stock traded as high as $70.75 and last traded at $70.33. Approximately 31,416,828 shares were traded during mid-day trading, an increase of 50% from the average daily volume of 20,970,178 shares. The stock had previously closed at $68.99.

Analysts Set New Price Targets

Several analysts have recently commented on CSCO shares. William Blair upgraded Cisco Systems to a "hold" rating in a report on Thursday, August 14th. Deutsche Bank Aktiengesellschaft upgraded Cisco Systems from a "hold" rating to a "buy" rating and increased their price objective for the company from $65.00 to $73.00 in a report on Monday, June 16th. Wolfe Research started coverage on Cisco Systems in a research note on Tuesday, July 8th. They issued a "peer perform" rating for the company. Hsbc Global Res lowered Cisco Systems from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 15th. Finally, Bank of America raised their target price on Cisco Systems from $76.00 to $85.00 and gave the stock a "buy" rating in a research note on Thursday, August 14th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat, Cisco Systems presently has a consensus rating of "Moderate Buy" and an average target price of $74.53.

Cisco Systems Trading Up 1.9%

The company has a debt-to-equity ratio of 0.49, a current ratio of 1.00 and a quick ratio of 0.91. The company's 50 day simple moving average is $68.14 and its 200 day simple moving average is $64.71. The firm has a market cap of $278.03 billion, a price-to-earnings ratio of 26.84, a P/E/G ratio of 2.90 and a beta of 0.97.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last announced its quarterly earnings results on Wednesday, August 13th. The network equipment provider reported $0.99 earnings per share for the quarter, beating analysts' consensus estimates of $0.98 by $0.01. The firm had revenue of $14.67 billion during the quarter, compared to analysts' expectations of $14.63 billion. Cisco Systems had a net margin of 18.45% and a return on equity of 27.06%. Cisco Systems's quarterly revenue was up 7.6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.87 earnings per share. Cisco Systems has set its Q1 2026 guidance at 0.970-0.990 EPS. FY 2026 guidance at 4.000-4.060 EPS. As a group, research analysts expect that Cisco Systems, Inc. will post 3.04 earnings per share for the current fiscal year.

Cisco Systems Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 22nd. Stockholders of record on Friday, October 3rd will be paid a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend is Friday, October 3rd. Cisco Systems's dividend payout ratio (DPR) is currently 62.60%.

Insider Buying and Selling at Cisco Systems

In other Cisco Systems news, SVP Maria Victoria Wong sold 428 shares of the firm's stock in a transaction on Thursday, September 11th. The shares were sold at an average price of $68.25, for a total transaction of $29,211.00. Following the completion of the transaction, the senior vice president directly owned 30,619 shares of the company's stock, valued at $2,089,746.75. This trade represents a 1.38% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Charles Robbins sold 30,557 shares of Cisco Systems stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $66.63, for a total transaction of $2,036,012.91. Following the completion of the transaction, the chief executive officer directly owned 639,000 shares of the company's stock, valued at $42,576,570. This trade represents a 4.56% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 82,965 shares of company stock worth $5,559,996. 0.01% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Norges Bank purchased a new position in shares of Cisco Systems in the second quarter worth approximately $3,816,825,000. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main increased its position in shares of Cisco Systems by 413.3% in the second quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 22,393,371 shares of the network equipment provider's stock worth $1,553,645,000 after acquiring an additional 18,030,441 shares in the last quarter. Kingstone Capital Partners Texas LLC purchased a new position in shares of Cisco Systems in the second quarter worth approximately $904,542,000. Franklin Resources Inc. increased its position in shares of Cisco Systems by 46.2% in the second quarter. Franklin Resources Inc. now owns 40,836,858 shares of the network equipment provider's stock worth $2,833,261,000 after acquiring an additional 12,904,969 shares in the last quarter. Finally, Goldman Sachs Group Inc. increased its position in shares of Cisco Systems by 37.4% in the first quarter. Goldman Sachs Group Inc. now owns 46,973,293 shares of the network equipment provider's stock worth $2,898,722,000 after acquiring an additional 12,775,066 shares in the last quarter. Institutional investors and hedge funds own 73.33% of the company's stock.

About Cisco Systems

Cisco Systems, Inc designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization.

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