Cisco Systems (NASDAQ:CSCO) Trading 2.2% Higher - Time to Buy?

Key Points

• Cisco shares rose 2.2% to $91.50 on Thursday, boosted by a strong Q2 update, rising demand for AI networking infrastructure and an upward revision to full‑year guidance that has driven investor enthusiasm.
• Fundamentals and analyst backdrop are broadly positive: Cisco beat Q2 estimates (EPS $1.04 vs $1.02; revenue $15.35B, +9.7% YoY), has a $361B market cap and a P/E of 32.1, and Wall Street ratings skew toward Buy (3 Strong Buy, 14 Buy, 8 Hold) with an average target of $89.81.
• Shareholder returns and ownership signals: Cisco raised its quarterly dividend to $0.42 (1.8% yield, ~59% payout ratio); insiders have recently sold modest stakes while institutional investors own about 73.3% of the stock.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report)'s stock price traded up 2.2% during trading on Thursday . The stock traded as high as $91.67 and last traded at $91.50. 21,575,555 shares were traded during mid-day trading, a decline of 4% from the average session volume of 22,456,777 shares. The stock had previously closed at $89.57.

Key Cisco Systems News

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

• Positive Sentiment: Strong Q2 update and AI infrastructure momentum — analysis highlights that Cisco’s Q2 results, demand for AI networking infrastructure, and an increase to full‑year guidance have driven investor enthusiasm and valuation re-rating. A Look At Cisco (CSCO) Valuation After Strong Q2 Results And AI Infrastructure Momentum
• Positive Sentiment: Daily outperformance note — a Zacks piece flags Cisco as having beaten the broader market upswing in the latest session, reflecting short‑term buying interest. Cisco Systems (CSCO) Beats Stock Market Upswing: What Investors Need to Know
• Positive Sentiment: Independent bullish theses gaining circulation — two recent writeups summarize bullish arguments (valuation gap to growth, secular AI/networking tailwinds) that may attract new buyers. Is Cisco Systems, Inc. (CSCO) A Good Stock To Buy Now? Is Cisco Systems, Inc. (CSCO) A Good Stock To Buy Now?
• Neutral Sentiment: Broader market tailwind — Investopedia notes the best monthly performance for stocks since 2020, a backdrop that has helped cyclical/tech names including Cisco. Market strength is supportive but not company‑specific. Stocks Just Had Their Best Month Since 2020—Here Are The Big Winners
• Neutral Sentiment: Analyst backdrop: modestly positive — coverage summaries show Wall Street remains moderately optimistic but not unanimously bullish; steady analyst sentiment supports but does not guarantee further upside. Is Wall Street Bullish or Bearish on Cisco Systems Stock?
• Neutral Sentiment: Non‑financial reporting — Cisco’s FY25 Purpose Report highlights sustainability and energy-efficiency initiatives; relevant for long‑term ESG-minded investors but unlikely to move the stock in the near term. How We're Building a Cleaner, More Efficient Energy Supply | Cisco FY25 Purpose Report
• Negative Sentiment: Relative short‑term underperformance vs. peers on some sessions — a MarketWatch note flags days where Cisco lagged competitors, a reminder that momentum can be uneven and valuation gains may invite profit‑taking or rotation. Cisco Systems Inc. stock underperforms Tuesday when compared to competitors

Analyst Ratings Changes

Several equities analysts have commented on the stock. Weiss Ratings reiterated a "buy (b)" rating on shares of Cisco Systems in a report on Friday, April 24th. DZ Bank upgraded shares of Cisco Systems to a "strong-buy" rating in a report on Friday, February 13th. Truist Financial assumed coverage on shares of Cisco Systems in a report on Tuesday, March 31st. They issued a "buy" rating and a $94.00 price objective on the stock. JPMorgan Chase & Co. upped their price objective on shares of Cisco Systems from $95.00 to $96.00 and gave the company an "overweight" rating in a report on Thursday, April 16th. Finally, Zacks Research cut shares of Cisco Systems from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. Three equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, Cisco Systems has an average rating of "Moderate Buy" and an average target price of $89.81.

Cisco Systems Stock Performance

The stock's 50-day moving average price is $81.20 and its 200-day moving average price is $77.83. The company has a market cap of $361.41 billion, a P/E ratio of 32.11, a PEG ratio of 3.38 and a beta of 0.83. The company has a debt-to-equity ratio of 0.45, a current ratio of 0.96 and a quick ratio of 0.85.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last announced its earnings results on Wednesday, February 11th. The network equipment provider reported $1.04 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.02 by $0.02. The company had revenue of $15.35 billion during the quarter, compared to analysts' expectations of $15.11 billion. Cisco Systems had a net margin of 19.22% and a return on equity of 27.88%. Cisco Systems's quarterly revenue was up 9.7% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.94 earnings per share. Equities analysts anticipate that Cisco Systems, Inc. will post 3.4 EPS for the current year.

Cisco Systems Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 22nd. Investors of record on Thursday, April 2nd were given a dividend of $0.42 per share. This is a positive change from Cisco Systems's previous quarterly dividend of $0.41. This represents a $1.68 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend was Thursday, April 2nd. Cisco Systems's dividend payout ratio (DPR) is currently 58.95%.

Insider Buying and Selling at Cisco Systems

In related news, EVP Thimaya K. Subaiya sold 1,744 shares of the company's stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $77.07, for a total transaction of $134,410.08. Following the completion of the sale, the executive vice president owned 156,693 shares of the company's stock, valued at $12,076,329.51. This represents a 1.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Oliver Tuszik sold 3,132 shares of the company's stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $79.74, for a total transaction of $249,745.68. Following the sale, the executive vice president directly owned 188,613 shares of the company's stock, valued at $15,040,000.62. This represents a 1.63% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 46,431 shares of company stock valued at $3,574,820 over the last three months. 0.01% of the stock is owned by insiders.

Institutional Investors Weigh In On Cisco Systems

Several institutional investors and hedge funds have recently bought and sold shares of the company. Forza Wealth Management LLC lifted its position in Cisco Systems by 0.5% during the first quarter. Forza Wealth Management LLC now owns 64,462 shares of the network equipment provider's stock worth $5,002,000 after purchasing an additional 350 shares during the period. Main Street Research LLC lifted its holdings in shares of Cisco Systems by 3.9% in the first quarter. Main Street Research LLC now owns 10,057 shares of the network equipment provider's stock worth $780,000 after acquiring an additional 373 shares during the last quarter. First Horizon Corp lifted its holdings in shares of Cisco Systems by 19.4% in the first quarter. First Horizon Corp now owns 515,730 shares of the network equipment provider's stock worth $40,015,000 after acquiring an additional 83,957 shares during the last quarter. Valued Wealth Advisors LLC lifted its holdings in shares of Cisco Systems by 16.7% in the first quarter. Valued Wealth Advisors LLC now owns 1,011 shares of the network equipment provider's stock worth $78,000 after acquiring an additional 145 shares during the last quarter. Finally, Mosaic Family Wealth Partners LLC lifted its holdings in shares of Cisco Systems by 55.3% in the first quarter. Mosaic Family Wealth Partners LLC now owns 17,500 shares of the network equipment provider's stock worth $1,358,000 after acquiring an additional 6,230 shares during the last quarter. Institutional investors 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.

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