Cisco Systems (NASDAQ:CSCO) Trading Up 1% - Should You Buy?

Key Points

• Cisco Systems' stock rose by 1% on Tuesday, trading at $67.83, significantly below its average daily volume, which saw an 83% decline.
• Several analysts have upgraded their ratings for Cisco, with target prices ranging from $73.00 to $87.00, leading to a consensus rating of Moderate Buy and an average target price of $74.53.
• The company reported a quarterly earnings per share of $0.99, exceeding expectations, and announced a quarterly dividend of $0.41 per share, set to be paid on October 22nd.

Shares of Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) were up 1% on Tuesday . The stock traded as high as $68.31 and last traded at $67.83. Approximately 3,652,036 shares were traded during mid-day trading, a decline of 83% from the average daily volume of 21,326,779 shares. The stock had previously closed at $67.14.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on CSCO shares. JPMorgan Chase & Co. lifted their price objective on Cisco Systems from $73.00 to $78.00 and gave the stock an "overweight" rating in a research report on Thursday, July 17th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $87.00 target price on shares of Cisco Systems in a research report on Thursday, August 14th. Deutsche Bank Aktiengesellschaft raised Cisco Systems from a "hold" rating to a "buy" rating and boosted their target price for the company from $65.00 to $73.00 in a research report on Monday, June 16th. Citigroup upped their price objective on Cisco Systems from $68.00 to $71.00 and gave the company a "buy" rating in a research note on Thursday, May 15th. Finally, CICC Research assumed coverage on Cisco Systems in a research note on Monday, July 14th. They issued an "outperform" rating and a $78.00 price objective on the stock. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $74.53.

Cisco Systems Stock Up 1.2%

The stock's 50 day simple moving average is $68.23 and its two-hundred day simple moving average is $63.60. The firm has a market cap of $268.98 billion, a P/E ratio of 25.91, a P/E/G ratio of 2.75 and a beta of 0.91. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.01 and a quick ratio of 0.92.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last announced its quarterly earnings results on Wednesday, August 13th. The network equipment provider reported $0.99 earnings per share for the quarter, beating the consensus estimate of $0.98 by $0.01. The company had revenue of $14.67 billion during the quarter, compared to the consensus estimate of $14.63 billion. Cisco Systems had a net margin of 18.45% and a return on equity of 27.02%. The firm's quarterly revenue was up 7.6% compared to the same quarter last year. During the same quarter last year, the firm earned $0.87 earnings per share. Cisco Systems has set its Q1 2026 guidance at 0.970-0.990 EPS. FY 2026 guidance at 4.000-4.060 EPS. As a group, research analysts forecast that Cisco Systems, Inc. will post 3.04 earnings per share for the current year.

Cisco Systems Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 22nd. Investors of record on Friday, October 3rd will be given a dividend of $0.41 per share. The ex-dividend date of this dividend is Friday, October 3rd. This represents a $1.64 annualized dividend and a dividend yield of 2.4%. Cisco Systems's dividend payout ratio (DPR) is 62.60%.

Insider Buying and Selling

In related news, EVP Thimaya K. Subaiya sold 7,511 shares of the firm's stock in a transaction that occurred on Wednesday, August 20th. The shares were sold at an average price of $66.84, for a total value of $502,035.24. Following the sale, the executive vice president owned 161,467 shares in the company, valued at approximately $10,792,454.28. This trade represents a 4.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, SVP Maria Victoria Wong sold 475 shares of the firm's stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $68.61, for a total transaction of $32,589.75. Following the completion of the sale, the senior vice president owned 34,630 shares in the company, valued at $2,375,964.30. This represents a 1.35% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 135,118 shares of company stock valued at $8,847,167 in the last ninety days. Corporate insiders own 0.01% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of CSCO. Brighton Jones LLC boosted its stake in shares of Cisco Systems by 49.5% during the 4th quarter. Brighton Jones LLC now owns 74,187 shares of the network equipment provider's stock worth $4,392,000 after acquiring an additional 24,562 shares during the last quarter. Revolve Wealth Partners LLC raised its position in shares of Cisco Systems by 37.0% during the 4th quarter. Revolve Wealth Partners LLC now owns 9,156 shares of the network equipment provider's stock valued at $542,000 after purchasing an additional 2,474 shares during the period. Mission Creek Capital Partners Inc. raised its position in shares of Cisco Systems by 12.2% during the 4th quarter. Mission Creek Capital Partners Inc. now owns 9,075 shares of the network equipment provider's stock valued at $537,000 after purchasing an additional 987 shares during the period. Betterment LLC bought a new stake in shares of Cisco Systems during the 4th quarter valued at $248,000. Finally, Israel Discount Bank of New York bought a new stake in shares of Cisco Systems during the 4th quarter valued at $204,000. Hedge funds and other institutional investors own 73.33% of the company's stock.

Cisco Systems Company Profile

Cisco Systems, Inc designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization.

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