Cisco Systems, Inc. (NASDAQ:CSCO) Stock Has Consensus Target Price of $128.52 According to Brokerages

Key Points

• Analyst sentiment is moderately bullish: Twenty-six analysts rate Cisco “Moderate Buy,” including 16 buys and three strong buys, with an average 12-month price target of $128.52 versus a recent price of $110.29.
• Recent financial results exceeded expectations: Cisco reported quarterly EPS of $1.22 on $17.25 billion in revenue, surpassing forecasts, while revenue increased 17.6% year over year. The company also pays a quarterly dividend of $0.42 per share, yielding about 1.5% annually.
• AI and security provide growth opportunities, but valuation is a concern: Cisco is expanding its AI-security, quantum-safe technology and rogue-agent detection initiatives, although investors remain cautious about whether future cash flow will justify the stock’s elevated valuation. ETF selling and recent insider sales add near-term pressure.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) has been assigned an average rating of "Moderate Buy" from the twenty-six ratings firms that are currently covering the firm, MarketBeat.com reports. Seven research analysts have rated the stock with a hold rating, sixteen have given a buy rating and three have issued a strong buy rating on the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $128.52.

A number of equities analysts have recently weighed in on CSCO shares. HSBC cut Cisco Systems from a "buy" rating to a "hold" rating and cut their price target for the stock from $137.00 to $120.00 in a report on Friday, August 14th. Morgan Stanley increased their price objective on Cisco Systems from $130.00 to $135.00 and gave the company an "overweight" rating in a research note on Thursday, August 13th. Rosenblatt Securities raised their price target on shares of Cisco Systems from $150.00 to $165.00 and gave the stock a "buy" rating in a research note on Thursday, August 13th. Freedom Capital raised shares of Cisco Systems from a "hold" rating to a "strong-buy" rating in a research note on Sunday, August 16th. Finally, Wall Street Zen upgraded shares of Cisco Systems from a "hold" rating to a "buy" rating in a research report on Sunday, October 11th.

More Cisco Systems News

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

• Positive Sentiment: Cisco is emphasizing AI security and “quantum-safe” technology as enterprises build out AI infrastructure. The strategy could create additional demand for Cisco’s networking, cybersecurity and observability products. What Is Cisco Signaling With Its AI Security And Quantum Safe Push?
• Positive Sentiment: Cisco President and Chief Product Officer Jeetu Patel said AI-agent safety will be a major technology issue, highlighting security risks that could increase demand for Cisco’s security and infrastructure solutions. AI Agent Safety Will Be the Issue of Our Time
• Positive Sentiment: Cisco open-sourced Project Quarry, a tool designed to detect rogue AI agents. The initiative could strengthen Cisco’s credibility in securing enterprise AI deployments and support future software and security opportunities. Cisco Open Sources Project Quarry to Detect Rogue AI Agents
• Positive Sentiment: Analyst consensus price targets reportedly moved higher, while Cisco’s partner awards and channel activity point to continued customer and reseller engagement. Cisco Systems Consensus Price Target Rises
• Neutral Sentiment: NTT DATA’s global AI Factory expansion may broaden demand for secure networking and AI infrastructure, although the announcement does not identify a specific Cisco contract or near-term revenue contribution. NTT DATA Expands AI Factory Footprint
• Negative Sentiment: Exchange-traded funds were net sellers of Cisco, creating near-term technical pressure independent of the company’s operating outlook. ETFs Are Net Sellers of Cisco
• Negative Sentiment: Investors are questioning whether Cisco’s strong multi-year advance and AI-related optimism are fully supported by future cash flow. A relatively elevated valuation leaves less room for execution disappointments. Can Cisco Stay Cheap as AI Cash Flow Builds?

Insider Activity at Cisco Systems

In other news, EVP Oliver Tuszik sold 2,760 shares of the company's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $112.46, for a total transaction of $310,389.60. Following the completion of the sale, the executive vice president directly owned 165,276 shares in the company, valued at $18,586,938.96. This represents a 1.64% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeetendra I. Patel sold 7,170 shares of Cisco Systems stock in a transaction on Friday, August 14th. The shares were sold at an average price of $111.57, for a total value of $799,956.90. Following the completion of the transaction, the insider owned 230,593 shares in the company, valued at $25,727,261.01. The trade was a 3.02% 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. Insiders have sold a total of 44,869 shares of company stock valued at $5,005,620 over the last 90 days. 0.01% of the stock is currently owned by insiders.

Institutional Trading of Cisco Systems

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Bridgewater Advisors Inc. bought a new stake in shares of Cisco Systems during the 2nd quarter valued at about $6,442,000. Beacon Pointe Advisors LLC acquired a new position in Cisco Systems in the second quarter valued at approximately $60,009,000. Western Wealth Management LLC lifted its stake in Cisco Systems by 60.5% in the first quarter. Western Wealth Management LLC now owns 76,372 shares of the network equipment provider's stock valued at $5,926,000 after buying an additional 28,792 shares during the period. ABN AMRO Bank N.V. acquired a new stake in shares of Cisco Systems during the 2nd quarter worth approximately $19,114,000. Finally, USS Investment Management Ltd grew its position in shares of Cisco Systems by 1.8% during the 1st quarter. USS Investment Management Ltd now owns 686,466 shares of the network equipment provider's stock worth $53,253,000 after buying an additional 12,251 shares during the period. Institutional investors and hedge funds own 73.33% of the company's stock.

Cisco Systems Stock Performance

Shares of Cisco Systems stock opened at $110.29 on Thursday. The firm's fifty day simple moving average is $110.14 and its 200-day simple moving average is $100.68. The stock has a market capitalization of $434.83 billion, a price-to-earnings ratio of 33.02, a PEG ratio of 2.22 and a beta of 0.99. Cisco Systems has a 12 month low of $70.54 and a 12 month high of $130.37. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.93 and a quick ratio of 0.79.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share for the quarter, topping analysts' consensus estimates of $1.17 by $0.05. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The firm had revenue of $17.25 billion during the quarter, compared to analysts' expectations of $16.84 billion. During the same quarter in the prior year, the business earned $0.99 EPS. Cisco Systems's quarterly revenue was up 17.6% compared to the same quarter last year. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. As a group, equities analysts forecast that Cisco Systems will post 4.42 earnings per share for the current year.

Cisco Systems Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 21st. Investors of record on Friday, October 2nd were given a dividend of $0.42 per share. The ex-dividend date of this dividend was Friday, October 2nd. This represents a $1.68 annualized dividend and a yield of 1.5%. Cisco Systems's dividend payout ratio is 50.30%.

Cisco Systems Company Profile

Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration and observability solutions for businesses, government organizations and service providers. Its offerings include routers, switches, wireless networking equipment, data-center infrastructure, security software and services, as well as technologies that support cloud and hybrid IT environments.

The company also provides collaboration tools through its Webex portfolio, cloud-managed networking through Cisco Meraki and security and observability capabilities that include technologies from Splunk, which Cisco acquired in 2024.

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