Cisco Systems (NASDAQ:CSCO) Stock Price Down 1.8% - Should You Sell?

Key Points

• Cisco shares fell 1.8% to $110.06 in Monday trading, with volume roughly 46% below the average session volume.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $129.68, implying upside from the current price.
• Cisco exceeded quarterly earnings and revenue expectations, reporting $1.22 in EPS and $17.25 billion in revenue, while maintaining a quarterly dividend of $0.42 per share, or a 1.5% annualized yield.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report)'s share price dropped 1.8% during trading on Monday . The company traded as low as $109.39 and last traded at $110.06. Approximately 12,378,699 shares changed hands during mid-day trading, a decline of 46% from the average session volume of 22,747,703 shares. The stock had previously closed at $112.13.

Analysts Set New Price Targets

Several analysts recently weighed in on CSCO shares. Morgan Stanley increased their target price on Cisco Systems from $130.00 to $135.00 and gave the company an "overweight" rating in a research note on Thursday, August 13th. KeyCorp upped their price target on Cisco Systems from $130.00 to $135.00 and gave the stock an "overweight" rating in a report on Thursday, August 13th. Deutsche Bank Aktiengesellschaft assumed coverage on Cisco Systems in a research report on Tuesday, September 1st. They issued a "buy" rating and a $135.00 price objective for the company. The Goldman Sachs Group boosted their target price on shares of Cisco Systems from $116.00 to $125.00 and gave the stock a "neutral" rating in a research report on Wednesday, June 3rd. Finally, Freedom Capital upgraded shares of Cisco Systems from a "hold" rating to a "strong-buy" rating in a research note on Sunday, August 16th. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $129.68.

Cisco Systems Price Performance

The company has a market cap of $433.92 billion, a price-to-earnings ratio of 32.95, a price-to-earnings-growth ratio of 2.34 and a beta of 1.00. The company has a current ratio of 0.93, a quick ratio of 0.79 and a debt-to-equity ratio of 0.39. The company has a fifty day moving average price of $113.66 and a two-hundred day moving average price of $103.48.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, beating analysts' consensus estimates of $1.17 by $0.05. The business had revenue of $17.25 billion during 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%.Cisco Systems's revenue was up 17.6% on a year-over-year basis. During the same period in the prior year, the company posted $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 anticipate that Cisco Systems, Inc. will post 4.43 EPS for the current fiscal year.

Cisco Systems Announces Dividend

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

Insider Buying and Selling at Cisco Systems

In related news, EVP Deborah L. Stahlkopf sold 6,487 shares of the stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $111.53, for a total value of $723,495.11. Following the completion of the transaction, the executive vice president owned 167,116 shares of the company's stock, valued at $18,638,447.48. This represents a 3.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,628 shares of the firm's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $111.54, for a total transaction of $2,412,387.12. Following the transaction, the chief executive officer owned 602,710 shares of the company's stock, valued at approximately $67,226,273.40. This represents a 3.46% 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 sold 51,004 shares of company stock worth $5,750,920 in the last 90 days. 0.01% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cisco Systems

A number of hedge funds have recently modified their holdings of CSCO. MidAtlantic Capital Management Inc. acquired a new position in Cisco Systems during the fourth quarter worth $25,000. Networth Advisors LLC boosted its stake in shares of Cisco Systems by 276.4% in 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 in the last quarter. Manning & Napier Advisors LLC grew its holdings in shares of Cisco Systems by 137.0% in 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. Financial Life Planners bought a new stake in shares of Cisco Systems in the 1st quarter worth about $27,000. Finally, Principia Wealth Advisory LLC increased its position in shares of Cisco Systems by 43.7% during the 2nd quarter. Principia Wealth Advisory LLC now owns 398 shares of the network equipment provider's stock worth $47,000 after purchasing an additional 121 shares in the last quarter. 73.33% of the stock is owned by institutional investors and hedge funds.

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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