Cisco Systems Target of Unusually High Options Trading (NASDAQ:CSCO)

Key Points

• Cisco Systems saw unusually heavy options activity on Thursday, with investors buying 135,983 call options — about 127% above the average volume.
• The company delivered a strong earnings update, reporting $15.84 billion in revenue and adjusted EPS of $1.06, both ahead of Wall Street estimates, and it raised full-year fiscal 2026 guidance.
• Cisco is leaning into AI growth, saying hyperscaler AI infrastructure orders are surging, while also announcing job cuts and restructuring that may improve efficiency but add near-term execution risk.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) was the target of some unusual options trading on Thursday. Investors bought 135,983 call options on the stock. This is an increase of approximately 127% compared to the average volume of 60,021 call options.

More Cisco Systems News

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

• Positive Sentiment: Cisco reported revenue of $15.84 billion, up 12% year over year and above Wall Street estimates, while adjusted EPS of $1.06 also topped expectations. Cisco Reports Third Quarter Earnings
• Positive Sentiment: The company raised full-year fiscal 2026 guidance, with revenue now projected at $62.8 billion-$63.0 billion and EPS at $4.27-$4.29, both above consensus, signaling confidence in demand trends. Reuters article
• Positive Sentiment: Cisco said AI infrastructure orders are surging, including about $9 billion in hyperscaler AI infrastructure orders for FY2026, reinforcing the market’s view that Cisco is becoming a bigger AI play. Article about AI infrastructure orders
• Positive Sentiment: The company also announced a quarterly dividend of $0.42 per share, which supports its appeal to income-focused investors. MarketBeat dividend note
• Neutral Sentiment: Cisco is cutting about 4,000 jobs as part of an AI-focused restructuring, with up to $1 billion in related charges; investors see this as a margin/efficiency move, but it also adds near-term execution risk. WSJ article

Insider Activity at Cisco Systems

In other Cisco Systems news, CEO Charles Robbins sold 19,545 shares of the business's stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $76.00, for a total transaction of $1,485,420.00. Following the transaction, the chief executive officer owned 671,095 shares of the company's stock, valued at $51,003,220. The trade was a 2.83% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, SVP Maria Victoria Wong sold 551 shares of the business's stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $77.54, for a total value of $42,724.54. Following the transaction, the senior vice president directly owned 27,957 shares in the company, valued at $2,167,785.78. This trade represents a 1.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 46,431 shares of company stock valued at $3,574,820. 0.01% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Cisco Systems

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Intesa Sanpaolo Wealth Management purchased a new position in shares of Cisco Systems in the 4th quarter worth about $25,000. MidAtlantic Capital Management Inc. bought a new position in Cisco Systems during the 4th quarter valued at approximately $25,000. Networth Advisors LLC raised its position in 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 during the last quarter. Manning & Napier Advisors LLC raised its position in 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 during the last quarter. Finally, Financial Life Planners bought a new position in Cisco Systems during the 1st quarter valued at approximately $27,000. 73.33% of the stock is currently owned by hedge funds and other institutional investors.

Cisco Systems Stock Performance

NASDAQ:CSCO traded up $15.38 during trading hours on Thursday, reaching $117.25. The stock had a trading volume of 39,106,472 shares, compared to its average volume of 22,784,932. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.85 and a current ratio of 0.96. Cisco Systems has a 12-month low of $62.30 and a 12-month high of $119.36. The stock has a market cap of $463.12 billion, a P/E ratio of 41.11, a price-to-earnings-growth ratio of 3.73 and a beta of 0.92. The stock has a 50 day simple moving average of $83.93 and a 200 day simple moving average of $79.36.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its quarterly earnings data on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.03 by $0.03. Cisco Systems had a return on equity of 27.88% and a net margin of 19.22%.The company had revenue of $15.84 billion for the quarter, compared to analyst estimates of $15.56 billion. During the same period in the previous year, the company posted $0.96 EPS. The firm's revenue for the quarter was up 12.0% compared to the same quarter last year. 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. On average, research analysts forecast that Cisco Systems will post 3.42 EPS for the current fiscal year.

Cisco Systems Dividend Announcement

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 given a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a yield of 1.4%. The ex-dividend date is Monday, July 6th. Cisco Systems's payout ratio is presently 58.95%.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on CSCO. Truist Financial initiated coverage on Cisco Systems in a research note on Tuesday, March 31st. They issued a "buy" rating and a $94.00 price target for the company. New Street Research lifted their price objective on Cisco Systems from $82.00 to $122.00 and gave the company a "neutral" rating in a report on Thursday. Morgan Stanley lifted their price objective on Cisco Systems from $91.00 to $120.00 and gave the company an "overweight" rating in a report on Thursday. Bank of America raised their target price on Cisco Systems from $95.00 to $114.00 in a report on Thursday. Finally, CICC Research raised their target price on Cisco Systems from $84.00 to $96.00 and gave the company an "outperform" rating in a report on Friday, February 13th. Three research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat, Cisco Systems currently has a consensus rating of "Moderate Buy" and a consensus target price of $108.32.

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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