Cisco Systems (NASDAQ:CSCO) Trading Down 1.9% - Time to Sell?

Key Points

• Cisco Systems shares fell 1.9% on Tuesday, trading as low as $111.67 after closing at $113.98, with volume running below the daily average.
• Wall Street sentiment remains positive: several analysts raised price targets, and the stock now carries a consensus Moderate Buy rating with an average target of $123.14.
• Recent fundamentals were solid, as Cisco beat quarterly EPS and revenue estimates, posted 12% revenue growth year over year, and continued its dividend with a $0.42 quarterly payout.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) was down 1.9% during trading on Tuesday . The stock traded as low as $111.67 and last traded at $111.79. Approximately 15,974,298 shares changed hands during mid-day trading, a decline of 34% from the average daily volume of 24,037,092 shares. The stock had previously closed at $113.98.

Analysts Set New Price Targets

Several brokerages have recently weighed in on CSCO. Morgan Stanley raised their price target on shares of Cisco Systems from $120.00 to $130.00 and gave the stock an "overweight" rating in a research note on Friday, June 12th. UBS Group increased their target price on shares of Cisco Systems from $95.00 to $132.00 and gave the stock a "buy" rating in a report on Thursday, May 14th. The Goldman Sachs Group raised their target price on shares of Cisco Systems from $116.00 to $125.00 and gave the company a "neutral" rating in a research report on Wednesday, June 3rd. Citigroup boosted their price target on shares of Cisco Systems from $90.00 to $112.00 and gave the stock a "buy" rating in a research report on Thursday, May 14th. Finally, Truist Financial started coverage on shares of Cisco Systems in a research note on Tuesday, March 31st. They set a "buy" rating and a $94.00 price objective for the company. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $123.14.

Cisco Systems Stock Down 1.9%

The firm has a market capitalization of $440.61 billion, a P/E ratio of 36.30, a PEG ratio of 2.87 and a beta of 1.02. The firm's 50 day moving average is $112.59 and its two-hundred day moving average is $90.82. 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, beating analysts' consensus estimates of $1.03 by $0.03. The firm had revenue of $15.84 billion during the quarter, compared to analysts' expectations of $15.56 billion. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The company's revenue for the quarter was up 12.0% compared to the same quarter last year. During the same quarter last year, the company posted $0.96 earnings per share. 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. Research analysts predict that Cisco Systems, Inc. will post 3.54 EPS for the current year.

Cisco Systems Dividend Announcement

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 given a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Monday, July 6th. Cisco Systems's payout ratio is 54.55%.

Insider Transactions at Cisco Systems

In related news, CEO Charles Robbins sold 21,400 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $120.03, for a total transaction of $2,568,642.00. Following the transaction, the chief executive officer directly owned 637,085 shares of the company's stock, valued at approximately $76,469,312.55. The trade was a 3.25% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,607 shares of the 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 trade represents a 1.49% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 47,650 shares of company stock valued at $5,668,823. Company insiders own 0.01% of the company's stock.

Institutional Trading of Cisco Systems

Hedge funds have recently modified their holdings of the stock. Cozad Asset Management Inc. grew its holdings in Cisco Systems by 0.3% during 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 purchasing an additional 87 shares during the period. Dogwood Wealth Management LLC raised its stake in shares of Cisco Systems by 3.9% in the second quarter. Dogwood Wealth Management LLC now owns 2,413 shares of the network equipment provider's stock valued at $283,000 after buying an additional 90 shares during the period. Financial Insights Inc. lifted its position in shares of Cisco Systems by 1.5% during the 1st 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. Southern Financial Group LLC lifted its position in shares of Cisco Systems by 1.1% during the 1st quarter. Southern Financial Group LLC now owns 9,159 shares of the network equipment provider's stock valued at $711,000 after buying an additional 102 shares during the last quarter. Finally, Signature Resources Capital Management LLC grew its stake in shares of Cisco Systems by 2.3% during the 1st quarter. Signature Resources Capital Management LLC now owns 5,061 shares of the network equipment provider's stock worth $393,000 after acquiring an additional 116 shares during the period. Institutional investors and hedge funds own 73.33% of the company's stock.

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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