Cisco Systems (NASDAQ:CSCO) Shares Down 2.6% - Here's Why

Key Points

• Cisco shares fell 2.6% to $115.34 in Monday trading, with volume about 35% below the average session level.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $128.52, although HSBC downgraded the stock to “Hold” and lowered its target to $120.
• Cisco recently exceeded quarterly earnings and revenue expectations, while maintaining a quarterly dividend of $0.42 per share, equivalent to a 1.5% yield.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report)'s share price traded down 2.6% during trading on Monday. The company traded as low as $114.13 and last traded at $115.34. Approximately 14,456,278 shares were traded during mid-day trading, a decline of 35% from the average session volume of 22,401,277 shares. The stock had previously closed at $118.39.

Wall Street Analyst Weigh In

A number of equities analysts have commented on CSCO shares. UBS Group increased their target price on Cisco Systems from $132.00 to $138.00 and gave the company a "buy" rating in a report on Thursday, August 13th. Truist Financial increased their price target on shares of Cisco Systems from $125.00 to $140.00 and gave the company a "buy" rating in a research note on Thursday, August 13th. HSBC cut shares of Cisco Systems from a "buy" rating to a "hold" rating and decreased their target price for the company from $137.00 to $120.00 in a research report on Friday, August 14th. Zacks Research upgraded Cisco Systems from a "hold" rating to a "strong-buy" rating in a report on Wednesday, September 30th. Finally, Deutsche Bank Aktiengesellschaft assumed coverage on shares of Cisco Systems in a research note on Tuesday, September 1st. They issued a "buy" rating and a $135.00 price target for the company. Three research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $128.52.

Cisco Systems Price Performance

The company has a debt-to-equity ratio of 0.39, a current ratio of 0.93 and a quick ratio of 0.79. The stock has a 50-day moving average price of $112.18 and a 200 day moving average price of $107.97. The firm has a market cap of $454.74 billion, a price-to-earnings ratio of 34.53, a PEG ratio of 2.46 and a beta of 0.99.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share for the quarter, beating the consensus estimate of $1.17 by $0.05. The business had revenue of $17.25 billion during the quarter, compared to the consensus estimate of $16.84 billion. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%. The company's revenue was up 17.6% compared to the same quarter last year. During the same period in the prior year, the company earned $0.99 earnings per share. 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 research analysts forecast that Cisco Systems, Inc. will post 4.42 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

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

Insider Buying and Selling at Cisco Systems

In related news, 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 transaction, the insider directly owned 230,593 shares in the company, valued at $25,727,261.01. This trade represents a 3.02% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 680 shares of the business's stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $110.18, for a total transaction of $74,922.40. Following the transaction, the executive vice president owned 163,337 shares in the company, valued at approximately $17,996,470.66. This trade represents a 0.41% decrease in their ownership of the stock. 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 have sold 44,869 shares of company stock valued at $5,005,620. Corporate insiders own 0.01% of the company's stock.

Institutional Investors Weigh In On Cisco Systems

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Cozad Asset Management Inc. lifted its position in Cisco Systems by 0.3% in the 1st quarter. Cozad Asset Management Inc. now owns 26,203 shares of the network equipment provider's stock valued at $2,033,000 after purchasing an additional 87 shares during the last quarter. Dogwood Wealth Management LLC boosted its stake in Cisco Systems by 3.9% during the 2nd quarter. Dogwood Wealth Management LLC now owns 2,413 shares of the network equipment provider's stock valued at $283,000 after purchasing an additional 90 shares during the period. Green Ridge Wealth Planning LLC boosted its stake in Cisco Systems by 1.5% during the 3rd quarter. Green Ridge Wealth Planning LLC now owns 6,017 shares of the network equipment provider's stock valued at $648,000 after purchasing an additional 90 shares during the period. August Group Capital Ltd grew its position in Cisco Systems by 2.0% in the 2nd quarter. August Group Capital Ltd now owns 4,723 shares of the network equipment provider's stock worth $555,000 after purchasing an additional 91 shares during the last quarter. Finally, Financial Insights Inc. grew its position in Cisco Systems by 1.5% in the 1st quarter. Financial Insights Inc. now owns 6,220 shares of the network equipment provider's stock worth $483,000 after purchasing an additional 92 shares during the last quarter. Institutional investors and hedge funds own 73.33% of the company's stock.

About Cisco Systems

Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration, observability and data center solutions. Its products and services help businesses, governments, educational institutions and other organizations connect users and devices, manage infrastructure, protect digital environments and support cloud-based operations.

Cisco's portfolio includes routers and switches, wireless networking equipment, network management software, firewalls, identity and access tools, endpoint security products, collaboration applications and observability platforms.

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