Cisco Systems (NASDAQ:CSCO) Trading Up 1.3% on Analyst Upgrade

Key Points

• Cisco Systems (CSCO) rose about 1.3% after Wall Street Zen upgraded the stock from hold to buy, lifting intraday trading as high as $113.18.
• Analyst sentiment remains broadly positive, with several firms recently raising price targets; Cisco now carries a Moderate Buy consensus and an average target of $123.14.
• The company is also drawing interest for its exposure to the AI networking boom, while recent insider sales by executives and mixed short-term market commentary add some caution.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) shares shot up 1.3% during mid-day trading on Tuesday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The company traded as high as $113.18 and last traded at $112.18. 16,710,936 shares traded hands during mid-day trading, a decline of 30% from the average daily volume of 23,855,158 shares. The stock had previously closed at $110.70.

A number of other brokerages have also recently weighed in on CSCO. The Goldman Sachs Group upped their price target on Cisco Systems from $116.00 to $125.00 and gave the company a "neutral" rating in a research report on Wednesday, June 3rd. UBS Group boosted their target price on shares of Cisco Systems from $95.00 to $132.00 and gave the company a "buy" rating in a research note on Thursday, May 14th. Citic Securities upped their target price on shares of Cisco Systems from $90.00 to $130.00 in a report on Friday, May 15th. BNP Paribas Exane increased their target price on shares of Cisco Systems from $87.00 to $132.00 and gave the stock an "outperform" rating in a research report on Thursday, May 14th. Finally, Barclays lifted their price target on shares of Cisco Systems from $76.00 to $121.00 and gave the company an "equal weight" rating in a report on Thursday, May 14th. Three analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have given a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $123.14.

Insider Activity

In other Cisco Systems news, CEO Charles Robbins sold 21,400 shares of Cisco Systems stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $120.03, for a total value of $2,568,642.00. Following the completion of the transaction, the chief executive officer owned 637,085 shares in the company, valued at approximately $76,469,312.55. The trade was a 3.25% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 7,127 shares of the business's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $119.91, for a total value of $854,598.57. Following the completion of the transaction, the executive vice president directly owned 140,857 shares in the company, valued at approximately $16,890,162.87. This represents a 4.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 47,650 shares of company stock worth $5,668,823. 0.01% of the stock is currently owned by insiders.

Cisco Systems News Summary

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

• Positive Sentiment: Wall Street Zen upgraded Cisco Systems (CSCO) to Buy, adding to the view that analysts remain constructive on the stock. Wall Street Zen Upgrades Cisco Systems NASDAQ: CSCO to "Buy"
• Positive Sentiment: Cisco is getting attention as a potential winner in the AI networking boom, with reports highlighting its AI infrastructure exposure and new product/partnership activity in quantum networking and AI-enabled Webex Contact Center tools. Can Cisco Systems NASDAQ: CSCO Lead the AI Network Boom? Cisco (CSCO) Tests Quantum Networking While Webex Adds AI Contact Center Partner
• Neutral Sentiment: Analyst coverage remains broadly supportive, with Cisco carrying an average recommendation of “Moderate Buy” and other articles noting that Wall Street generally views the stock favorably. Cisco Systems, Inc. NASDAQ: CSCO Given Average Recommendation of "Moderate Buy" by Analysts Wall Street Analysts Think Cisco (CSCO) Is a Good Investment: Is It?
• Neutral Sentiment: Several items are mostly attention/technical-market stories, including Cisco being a trending stock and a speculative price-prediction piece, which may add noise but do not change fundamentals. 3 Reasons to Sell CSCO and 1 Stock to Buy Instead Price Prediction: Cisco Stock Will Double on This Date
• Negative Sentiment: A recent market article said Cisco (CSCO) fell more than the broader market, and another report highlighted concerns that the stock may be a sell after its steep run-up over the past six months. Cisco Systems (CSCO) Sees a More Significant Dip Than Broader Market: Some Facts to Know Cisco Systems (CSCO) Sees a More Significant Dip Than Broader Market: Some Facts to Know
• Negative Sentiment: There were also reports that Cisco stock dipped amid speculation about a possible Zafran Security acquisition, though the startup denied active sale talks, so the deal angle remains uncertain. Cisco Systems (CSCO) Stock Dips Amid Zafran Security Acquisition Reports

Hedge Funds Weigh In On Cisco Systems

A number of institutional investors have recently modified their holdings of the stock. MidAtlantic Capital Management Inc. acquired a new position in Cisco Systems during the 4th quarter worth $25,000. Intesa Sanpaolo Wealth Management acquired a new stake in shares of Cisco Systems in the 4th quarter valued at $25,000. Networth Advisors LLC increased its stake in shares of Cisco Systems by 276.4% in the 1st quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider's stock valued at $26,000 after buying an additional 246 shares during the period. Financial Life Planners bought a new stake in shares of Cisco Systems during the first quarter worth $27,000. Finally, Manning & Napier Advisors LLC lifted its stake in shares of Cisco Systems by 137.0% during the first quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider's stock valued at $27,000 after acquiring an additional 200 shares during the period. 73.33% of the stock is owned by institutional investors.

Cisco Systems Stock Up 1.3%

The firm has a 50 day moving average price of $117.63 and a 200-day moving average price of $93.67. The firm has a market cap of $442.15 billion, a price-to-earnings ratio of 36.42, a price-to-earnings-growth ratio of 2.85 and a beta of 1.02. 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 data 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 firm had revenue of $15.84 billion during the quarter, compared to analyst estimates of $15.56 billion. During the same period last year, the company earned $0.96 earnings per share. The company'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, equities analysts predict that Cisco Systems, Inc. will post 3.54 EPS for the current fiscal year.

Cisco Systems Announces Dividend

The firm 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 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 payout ratio is 54.55%.

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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