Cisco Systems (NASDAQ:CSCO) Trading Up 2.6% - Here's Why

Key Points

• Cisco Systems shares rose 2.6% on Thursday, trading as high as $122.55 after closing at $118.80, with volume slightly above average.
• Several analysts turned more bullish on Cisco, including UBS, Morgan Stanley and Bank of America, with the stock now carrying a consensus Moderate Buy and an average price target of $120.18.
• Cisco posted strong quarterly results, beating earnings and revenue estimates, and also announced a quarterly dividend of $0.42 per share, payable July 22.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report)'s share price shot up 2.6% on Thursday . The company traded as high as $122.55 and last traded at $121.83. 23,925,587 shares were traded during trading, an increase of 1% from the average session volume of 23,740,795 shares. The stock had previously closed at $118.80.

Wall Street Analysts Forecast Growth

CSCO has been the topic of a number of analyst reports. UBS Group lifted their price target on Cisco Systems from $95.00 to $132.00 and gave the company a "buy" rating in a report on Thursday, May 14th. Morgan Stanley raised their price objective on Cisco Systems from $91.00 to $120.00 and gave the company an "overweight" rating in a research report on Thursday, May 14th. Bank of America lifted their target price on Cisco Systems from $135.00 to $150.00 and gave the company a "buy" rating in a research note on Monday. Truist Financial initiated coverage on shares of Cisco Systems in a research report on Tuesday, March 31st. They set a "buy" rating and a $94.00 price target for the company. Finally, CICC Research raised their price target on shares of Cisco Systems from $96.00 to $125.00 and gave the company an "outperform" rating in a report on Monday, May 18th. Two analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $120.18.

Cisco Systems Stock Performance

The business has a 50 day simple moving average of $100.53 and a 200 day simple moving average of $85.94. The company has a quick ratio of 0.81, a current ratio of 0.92 and a debt-to-equity ratio of 0.40. The company has a market capitalization of $480.19 billion, a PE ratio of 39.56, a PEG ratio of 3.07 and a beta of 1.01.

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, beating the consensus estimate of $1.03 by $0.03. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. 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 firm posted $0.96 EPS. Cisco Systems'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. Equities research analysts predict that Cisco Systems, Inc. will post 3.54 EPS for the current fiscal year.

Cisco Systems Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 22nd. Stockholders of record on Monday, July 6th will be issued a dividend of $0.42 per share. The ex-dividend date of this dividend is Monday, July 6th. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.4%. Cisco Systems's payout ratio is 54.55%.

Insider Transactions at Cisco Systems

In related news, EVP Deborah L. Stahlkopf sold 7,981 shares of the firm's stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $79.50, for a total value of $634,489.50. Following the completion of the transaction, the executive vice president owned 187,097 shares in the company, valued at $14,874,211.50. This trade represents a 4.09% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Oliver Tuszik sold 3,132 shares of Cisco Systems stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $79.74, for a total value of $249,745.68. Following the sale, the executive vice president directly owned 188,613 shares of the company's stock, valued at approximately $15,040,000.62. This represents a 1.63% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 49,029 shares of company stock valued at $5,382,699 in the last quarter. Insiders own 0.01% of the company's stock.

Institutional Investors Weigh In On Cisco Systems

Large investors have recently bought and sold shares of the company. World Investment Advisors boosted its position in shares of Cisco Systems by 15.4% in the 4th quarter. World Investment Advisors now owns 198,549 shares of the network equipment provider's stock valued at $13,905,000 after purchasing an additional 26,455 shares during the period. WCG Wealth Advisors LLC increased its position in Cisco Systems by 101.8% during the fourth quarter. WCG Wealth Advisors LLC now owns 107,306 shares of the network equipment provider's stock worth $8,266,000 after buying an additional 54,141 shares during the period. Rockland Trust Co. lifted its stake in Cisco Systems by 213.8% in the third quarter. Rockland Trust Co. now owns 20,497 shares of the network equipment provider's stock valued at $1,402,000 after buying an additional 13,966 shares during the last quarter. Vise Technologies Inc. boosted its holdings in shares of Cisco Systems by 47.1% in the fourth quarter. Vise Technologies Inc. now owns 200,341 shares of the network equipment provider's stock valued at $15,432,000 after acquiring an additional 64,144 shares during the period. Finally, Truist Financial Corp boosted its holdings in shares of Cisco Systems by 6.8% in the fourth quarter. Truist Financial Corp now owns 4,311,098 shares of the network equipment provider's stock valued at $332,084,000 after acquiring an additional 275,456 shares during the period. Hedge funds and other institutional investors 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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