Cisco Systems (NASDAQ:CSCO) Trading Down 6.4% - Time to Sell?

Key Points

• Cisco shares fell 6.4% on Friday, with heavy trading volume above average, even after the stock had recently been trading near its highs.
• Recent coverage remains mixed but generally upbeat on Cisco’s AI-driven growth opportunity, with analysts and commentators pointing to potential revenue gains from AI data-center demand and cybersecurity use cases.
• The company reported better-than-expected quarterly results, raised guidance for FY2026, and continues to pay a dividend yielding about 1.4%, though some concerns remain about valuation and insider selling.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) shares traded down 6.4% during trading on Friday . The company traded as low as $121.55 and last traded at $121.64. 32,526,878 shares were traded during mid-day trading, an increase of 37% from the average session volume of 23,773,289 shares. The stock had previously closed at $130.00.

Cisco Systems News Summary

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

• Positive Sentiment: Jim Cramer highlighted Cisco as a top Dow performer, saying older tech names like Cisco are benefiting from the AI data-center boom. Jim Cramer Highlights Cisco Systems as the Top Dow Performer
• Positive Sentiment: Analysts and media reports pointed to Cisco’s AI opportunity, including expectations for about $6 billion in FY2027 AI revenue, reinforcing the view that AI could accelerate growth. Analyst Upgrades Cisco Systems As It Anticipates $6 Billion in FY2027 AI Revenue
• Positive Sentiment: Jim Cramer also said Cisco could benefit from Anthropic’s cybersecurity-focused AI model, Mythos, which may lift demand for networking and security products. Cisco And Palo Alto Could Be Major Winners From Anthropic's Mythos AI, According To Jim Cramer
• Neutral Sentiment: Cisco presented at Bank of America’s Global Technology Conference, keeping attention on its AI platforms, cybersecurity initiatives, and valuation, but the event itself did not include a major new catalyst. Cisco Systems, Inc. (CSCO) Presents at Bank of America 2026 Global Technology Conference Transcript
• Neutral Sentiment: Broader market headlines on rising yields and a tech sell-off may be creating some pressure on the stock, even as Cisco’s AI story remains strong. Equities Fall, Yields Jump Intraday After Jobs Report; Tech Leads Sell-Off
• Negative Sentiment: Some commentary is echoing past “Cisco bubble” comparisons as Wall Street debates whether the current AI spending boom is sustainable, which could temper enthusiasm. Strategist Defends Semiconductor Rally Despite Bubble Fears: ‘Price Might Be Understanding Something You Don’t Quite Get’

Analyst Ratings Changes

A number of analysts have weighed in on the stock. 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. Piper Sandler upped their price objective on Cisco Systems from $86.00 to $132.00 and gave the company a "neutral" rating in a research report on Thursday, May 14th. The Goldman Sachs Group boosted their price objective on shares of Cisco Systems from $116.00 to $125.00 and gave the company a "neutral" rating in a research report on Wednesday. Rosenblatt Securities reaffirmed a "buy" rating and issued a $100.00 target price on shares of Cisco Systems in a report on Thursday, February 12th. Finally, Erste Group Bank downgraded Cisco Systems from a "buy" rating to a "hold" rating in a research report on Wednesday, February 18th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Cisco Systems has a consensus rating of "Moderate Buy" and a consensus price target of $119.50.

Cisco Systems Trading Down 6.4%

The stock's 50-day simple moving average is $97.25 and its two-hundred day simple moving average is $84.70. The company has a debt-to-equity ratio of 0.40, a current ratio of 0.92 and a quick ratio of 0.81. The firm has a market capitalization of $479.44 billion, a P/E ratio of 39.49, a price-to-earnings-growth ratio of 3.24 and a beta of 1.01.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share for the quarter, beating analysts' consensus estimates of $1.03 by $0.03. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The company had revenue of $15.84 billion for the quarter, compared to analysts' expectations of $15.56 billion. During the same quarter in the previous year, the company earned $0.96 EPS. Cisco Systems's revenue for the quarter 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. Equities research analysts expect that Cisco Systems, Inc. will post 3.52 EPS for the current year.

Cisco Systems Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 22nd. Investors of record on Monday, July 6th will be paid a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Monday, July 6th. Cisco Systems's dividend payout ratio (DPR) is 54.55%.

Insider Buying and Selling at Cisco Systems

In other news, insider Jeetendra I. Patel sold 7,169 shares of Cisco Systems stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $117.28, for a total transaction of $840,780.32. Following the sale, the insider owned 246,737 shares in the company, valued at $28,937,315.36. This trade represents a 2.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,400 shares of the company's stock in a transaction 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 owned 637,085 shares of the company's stock, valued at approximately $76,469,312.55. This represents a 3.25% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 51,324 shares of company stock worth $5,559,834. Insiders own 0.01% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in CSCO. Evansbrook LLC boosted its position in shares of Cisco Systems by 3.9% during the first quarter. Evansbrook LLC now owns 5,324 shares of the network equipment provider's stock valued at $413,000 after buying an additional 200 shares during the period. Wealthquest Corp boosted its stake in Cisco Systems by 7.6% in the first quarter. Wealthquest Corp now owns 3,262 shares of the network equipment provider's stock valued at $253,000 after acquiring an additional 230 shares in the last quarter. Stillwater Private Wealth LLC purchased a new position in Cisco Systems in the first quarter worth $283,000. Parallel Advisors LLC increased its position in Cisco Systems by 2.6% during the 1st quarter. Parallel Advisors LLC now owns 116,773 shares of the network equipment provider's stock valued at $9,060,000 after buying an additional 2,964 shares in the last quarter. Finally, NewEdge Advisors LLC boosted its position in Cisco Systems by 18.6% during the first quarter. NewEdge Advisors LLC now owns 2,467,602 shares of the network equipment provider's stock worth $191,461,000 after purchasing an additional 386,151 shares in the last quarter. Institutional investors 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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