Cisco Systems (NASDAQ:CSCO) Trading 5.5% Higher - Still a Buy?

Key Points

• Cisco shares rose 5.5% on Tuesday, extending a strong recent run as investors continue to favor the stock amid momentum in networking, AI infrastructure, and cybersecurity.
• Recent company developments are viewed as bullish, including the launch of Cisco Cloud Control, new AI-driven security products, and reports of record revenue, strong AI infrastructure orders, and guidance above expectations.
• Analysts remain constructive overall: several firms raised price targets, and Cisco’s latest earnings beat estimates, with quarterly revenue and year-over-year growth both coming in ahead of forecasts.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) traded up 5.5% on Tuesday . The company traded as high as $121.95 and last traded at $128.0450. 23,937,699 shares changed hands during trading, a decline of 13% from the average session volume of 27,487,546 shares. The stock had previously closed at $121.33.

Cisco Systems News Roundup

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

• Positive Sentiment: Cisco unveiled Cisco Cloud Control, a unified platform for managing and defending critical infrastructure with AI agents, which strengthens its position in enterprise AI and cybersecurity. Cisco Unveils Agentic Platform for Operating and Defending Critical IT Infrastructure
• Positive Sentiment: The company is promoting new AI-powered cybersecurity products, including Live Protect, which could support future product demand and revenue growth. Cisco Live Protect cybersecurity software to combat AI-powered attacks
• Positive Sentiment: Recent coverage also points to record revenue, strong AI infrastructure orders, and guidance above expectations, which adds to the bullish tone around CSCO. Cisco Systems (CSCO) Valuation Check After Record Revenue And Strong AI Infrastructure Momentum
• Positive Sentiment: Unusually heavy call-option buying suggests traders are positioning for more upside in the stock. Cisco Advances 5% to Record Highs on AI Cybersecurity Push, Arista Climbs as Networking Trade Extends
• Neutral Sentiment: Broader commentary notes Cisco has already had a strong multi-week run, so some investors are now weighing whether the rally has gone too far. Is It Too Late To Consider Cisco Systems (CSCO) After Its Strong Share Price Run
• Neutral Sentiment: Analysts remain generally constructive, with brokerages maintaining a moderate buy stance, supporting the stock but not adding a new catalyst. Cisco Systems, Inc. Given Consensus Rating of "Moderate Buy" by Brokerages

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the company. Argus raised their price objective on Cisco Systems from $100.00 to $150.00 and gave the company a "buy" rating in a report on Tuesday, May 19th. Wall Street Zen cut Cisco Systems from a "buy" rating to a "hold" rating in a report on Saturday, March 14th. Weiss Ratings raised Cisco Systems from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday. UBS Group raised their price objective on Cisco Systems from $95.00 to $132.00 and gave the company a "buy" rating in a report on Thursday, May 14th. Finally, Wells Fargo & Company lifted their price target on Cisco Systems from $95.00 to $130.00 and gave the stock an "overweight" rating in a research note on Thursday, May 14th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $119.09.

Cisco Systems Price Performance

The business has a 50 day moving average of $94.31 and a 200 day moving average of $83.61. The company has a market cap of $504.68 billion, a PE ratio of 41.57, a price-to-earnings-growth ratio of 3.16 and a beta of 1.01. The company has a debt-to-equity ratio of 0.40, a current ratio of 0.92 and a quick ratio of 0.81.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last announced its quarterly earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 EPS for the quarter, topping 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 company had revenue of $15.84 billion during the quarter, compared to analyst estimates of $15.56 billion. During the same quarter last year, the firm posted $0.96 earnings per share. The firm'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, research analysts predict that Cisco Systems, Inc. will post 3.44 EPS for the current year.

Cisco Systems Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 22nd. Investors of record on Monday, July 6th will be paid a $0.42 dividend. This represents a $1.68 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Monday, July 6th. Cisco Systems's dividend payout ratio is presently 54.55%.

Insider Buying and Selling

In related news, EVP Deborah L. Stahlkopf sold 6,586 shares of the company's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $117.31, for a total value of $772,603.66. Following the sale, the executive vice president directly owned 177,223 shares of the company's stock, valued at $20,790,030.13. This represents a 3.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 1,744 shares of the company's stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $77.07, for a total value of $134,410.08. Following the completion of the sale, the executive vice president directly owned 156,693 shares in the company, valued at approximately $12,076,329.51. The trade was a 1.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 51,324 shares of company stock valued at $5,559,834 over the last 90 days. 0.01% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Cisco Systems

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Cozad Asset Management Inc. increased its position in Cisco Systems by 0.3% in the 1st quarter. Cozad Asset Management Inc. now owns 26,203 shares of the network equipment provider's stock valued at $2,033,000 after acquiring an additional 87 shares during the period. Financial Insights Inc. increased its position in Cisco Systems by 1.5% in the 1st quarter. Financial Insights Inc. now owns 6,220 shares of the network equipment provider's stock valued at $483,000 after acquiring an additional 92 shares during the period. Signature Resources Capital Management LLC boosted its stake in shares of Cisco Systems by 2.3% in the 1st quarter. Signature Resources Capital Management LLC now owns 5,061 shares of the network equipment provider's stock valued at $393,000 after purchasing an additional 116 shares during the last quarter. Smithfield Trust Co boosted its stake in shares of Cisco Systems by 0.3% in the 4th quarter. Smithfield Trust Co now owns 33,666 shares of the network equipment provider's stock valued at $2,596,000 after purchasing an additional 117 shares during the last quarter. Finally, Pacific Sage Partners LLC boosted its stake in shares of Cisco Systems by 0.7% in the 1st quarter. Pacific Sage Partners LLC now owns 16,185 shares of the network equipment provider's stock valued at $1,256,000 after purchasing 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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