Cisco Systems (NASDAQ:CSCO) Shares Up 4.4% - Here's What Happened

Key Points

• Cisco shares rose 4.4% to about $112.13 amid optimism over its latest results, which included record revenue, earnings above guidance, 35% growth in product orders and stronger fiscal 2027 expectations tied to hyperscaler AI infrastructure demand.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and average price target of $129.68, while support also came from gains among networking peers and a stronger technology-market backdrop.
• Risks include a Huawei-related legal dispute and continued insider selling. Cisco also announced a quarterly dividend of $0.42 per share, equal to a 1.5% yield and a 50.3% payout ratio.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report)'s stock price traded up 4.4% during mid-day trading on Friday . The stock traded as high as $112.22 and last traded at $112.13. 14,021,159 shares changed hands during mid-day trading, a decline of 38% from the average session volume of 22,780,855 shares. The stock had previously closed at $107.44.

Key Stories Impacting Cisco Systems

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

• Positive Sentiment: Cisco’s latest earnings showed record revenue, earnings above guidance and 35% growth in total product orders. Management also raised fiscal 2027 expectations and said hyperscaler AI-infrastructure orders had reached meaningful scale, strengthening the company’s growth narrative. Cisco Systems rises as investors weigh upbeat AI networking commentary and a broader tech rally
• Positive Sentiment: A rally in networking peers, including Ciena and Arista Networks, and a generally stronger technology market are providing additional support for CSCO. Inflation data near expectations and easing oil prices also improved the broader market backdrop. Ciena Climbs 5% as Post-Earnings Selloff Reverses; Arista Networks Rises 5%, Cisco Jumps 4%
• Positive Sentiment: Cisco and quantum-computing company Infleqtion announced a research collaboration focused on connecting and scaling distributed quantum systems. The opportunity is long term, but it expands Cisco’s positioning in advanced networking infrastructure. Infleqtion and Cisco Announce Collaboration to Advance Networked Quantum Technology
• Neutral Sentiment: Although CSCO has weakened since its most recent earnings report, analysts’ median price target is reported at $130, above the current trading range. This signals potential upside but does not represent a new earnings forecast or rating change. Cisco Down Since Last Earnings Report: Can It Rebound?
• Negative Sentiment: A legal dispute involving claims about Huawei source code is an overhang, while Cisco insiders reportedly made no open-market purchases and conducted numerous sales over the past six months. These factors may limit investor confidence despite the AI growth outlook.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on CSCO shares. BNP Paribas Exane upped their target price on Cisco Systems from $87.00 to $132.00 and gave the stock an "outperform" rating in a report on Thursday, May 14th. Truist Financial upped their price objective on shares of Cisco Systems from $125.00 to $140.00 and gave the stock a "buy" rating in a research note on Thursday, August 13th. Wall Street Zen upgraded shares of Cisco Systems from a "hold" rating to a "buy" rating in a report on Saturday, August 15th. Citigroup raised their target price on shares of Cisco Systems from $90.00 to $112.00 and gave the company a "buy" rating in a research report on Thursday, May 14th. Finally, Freedom Capital upgraded shares of Cisco Systems from a "hold" rating to a "strong-buy" rating in a report on Sunday, August 16th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $129.68.

Cisco Systems Stock Up 4.4%

The business has a 50 day moving average of $113.67 and a two-hundred day moving average of $103.24. The stock has a market capitalization of $442.16 billion, a PE ratio of 33.58, a PEG ratio of 2.28 and a beta of 1.00. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.79 and a current ratio of 0.93.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.05. The company had revenue of $17.25 billion for the quarter, compared to analyst estimates of $16.84 billion. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%.The firm's quarterly revenue was up 17.6% compared to the same quarter last year. During the same quarter in the previous year, the firm 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. Analysts predict that Cisco Systems, Inc. will post 4.43 EPS for the current year.

Cisco Systems Announces Dividend

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

Insider Activity at Cisco Systems

In other news, insider Jeetendra I. Patel sold 7,170 shares of the company's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $111.57, for a total transaction of $799,956.90. Following the transaction, the insider directly owned 230,593 shares of the company's stock, valued at approximately $25,727,261.01. This represents a 3.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 5,832 shares of the stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $111.47, for a total value of $650,093.04. Following the sale, the executive vice president owned 128,382 shares of the company's stock, valued at approximately $14,310,741.54. This represents a 4.35% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 51,004 shares of company stock valued at $5,750,920 over the last three months. Company insiders own 0.01% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Intesa Sanpaolo Wealth Management purchased a new stake in shares of Cisco Systems during the fourth quarter worth about $25,000. MidAtlantic Capital Management Inc. acquired a new stake in Cisco Systems in the 4th quarter worth approximately $25,000. Networth Advisors LLC boosted its stake in Cisco Systems by 276.4% in the 1st quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider's stock worth $26,000 after purchasing an additional 246 shares in the last quarter. Manning & Napier Advisors LLC grew 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 worth $27,000 after purchasing an additional 200 shares during the last quarter. Finally, Financial Life Planners purchased a new stake in Cisco Systems during the 1st quarter worth approximately $27,000. 73.33% of the stock is currently owned by hedge funds and other institutional investors.

Cisco Systems Company Profile

Cisco Systems, Inc is a global technology company that provides networking, cybersecurity, collaboration, observability and other information technology solutions. Its offerings include routers, switches, wireless networking equipment, data center infrastructure, security platforms, unified communications tools and software designed to help organizations connect, manage and protect their digital environments.

Cisco serves businesses, government agencies, educational institutions, telecommunications providers and other organizations worldwide.

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