Cisco Systems (NASDAQ:CSCO) Trading Down 2.9% - What's Next?

Key Points

• Cisco shares fell 2.9% in Tuesday trading, even though volume was elevated at about 32.2 million shares, well above the average daily level.
• Analyst sentiment remains upbeat after Cisco’s strong earnings report, with HSBC, Argus, CICC Research, UBS, and Evercore all lifting price targets and/or maintaining bullish ratings.
• Cisco’s latest quarter beat expectations on revenue and EPS, and management raised guidance, including a forecast for $9 billion in AI infrastructure orders in fiscal 2026.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report)'s stock price was down 2.9% on Tuesday . The company traded as low as $114.79 and last traded at $115.38. Approximately 32,240,803 shares were traded during mid-day trading, an increase of 38% from the average daily volume of 23,423,938 shares. The stock had previously closed at $118.88.

More Cisco Systems News

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

• Positive Sentiment: HSBC upgraded Cisco to Buy from Hold and nearly doubled its price target to $137 from $77, reinforcing the bullish case after earnings. HSBC nearly doubles Cisco stock price target for 2026
• Positive Sentiment: Argus also raised its target to $150 and kept a Buy rating, while CICC Research lifted its target to $125 with an Outperform rating, adding to analyst momentum. Argus adjusts price target on Cisco Systems to 150 from 100
• Positive Sentiment: Cisco’s latest quarterly report beat expectations on both revenue and EPS, and management raised guidance, with AI infrastructure orders now expected to reach $9 billion in fiscal 2026. Cisco Systems (CSCO) Is Up 20.4% After Record Q3, AI Outlook Hike And Restructuring Shift – Has The Bull Case Changed?
• Positive Sentiment: Several articles highlighted Cisco as a beneficiary of surging AI networking demand and hyperscaler orders, with a restructuring that focuses investment on silicon, optics, security, and AI-related products. Cisco Job Cuts Reshape AI Infrastructure And Security Investment Story
• Neutral Sentiment: Cisco remains one of the most-watched stocks among investors and has been featured in several “best ideas” and AI-infrastructure comparisons, which helps keep attention on the name but does not add new fundamental news. Cisco Systems, Inc. (CSCO) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Some commentary questioned whether Cisco’s free cash flow and margins have peaked, but this appears secondary to the stronger earnings and guidance narrative. Cisco Systems Reported Lower FCF and Margins - Has CSCO Stock Peaked?

Analyst Ratings Changes

A number of equities analysts have recently weighed in on CSCO shares. Wall Street Zen lowered shares of Cisco Systems from a "buy" rating to a "hold" rating in a research report on Saturday, March 14th. UBS Group upped their price target on shares of Cisco Systems from $95.00 to $132.00 and gave the stock a "buy" rating in a research report on Thursday, May 14th. Evercore upped their price target on shares of Cisco Systems from $110.00 to $150.00 and gave the stock an "outperform" rating in a research report on Thursday, May 14th. CICC Research upped their price target on shares of Cisco Systems from $96.00 to $125.00 and gave the stock an "outperform" rating in a research report on Monday. Finally, Zacks Research lowered shares of Cisco Systems from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $118.14.

Cisco Systems Stock Down 2.9%

The firm has a market capitalization of $455.74 billion, a PE ratio of 37.46, a P/E/G ratio of 3.61 and a beta of 0.92. The firm's 50 day moving average price is $86.18 and its two-hundred day moving average price is $80.33. The company has a quick ratio of 0.81, a current ratio of 0.92 and a debt-to-equity ratio of 0.40.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its quarterly earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.03 by $0.03. The firm had revenue of $15.84 billion for 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 firm's quarterly revenue was up 12.0% on a year-over-year basis. During the same period in the prior 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. As a group, research analysts forecast that Cisco Systems, Inc. will post 3.42 EPS for the current fiscal year.

Cisco Systems Announces Dividend

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

Insider Activity

In related news, EVP Deborah L. Stahlkopf sold 7,981 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $79.50, for a total value of $634,489.50. Following the sale, the executive vice president owned 187,097 shares of the company's stock, valued at $14,874,211.50. This trade represents a 4.09% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Maria Victoria Wong sold 551 shares of the stock in a transaction dated Wednesday, March 11th. The stock was sold at an average price of $77.54, for a total transaction of $42,724.54. Following the completion of the sale, the senior vice president directly owned 27,957 shares in the company, valued at approximately $2,167,785.78. This trade represents a 1.93% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 15,587 shares of company stock worth $1,230,765 in the last 90 days. 0.01% of the stock is currently owned by insiders.

Institutional Trading of Cisco Systems

Large investors have recently modified their holdings of the company. MidAtlantic Capital Management Inc. bought a new position in Cisco Systems in the 4th quarter valued at about $25,000. Intesa Sanpaolo Wealth Management bought a new position in shares of Cisco Systems during the 4th quarter valued at about $25,000. Networth Advisors LLC boosted its position in shares of Cisco Systems by 276.4% during the 1st quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider's stock valued at $26,000 after purchasing an additional 246 shares in the last quarter. Financial Life Planners bought a new position in shares of Cisco Systems during the 1st quarter valued at about $27,000. Finally, Manning & Napier Advisors LLC boosted its position in shares of Cisco Systems by 137.0% during the 1st quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider's stock valued at $27,000 after purchasing an additional 200 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.

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