Cisco Systems (NASDAQ:CSCO) Trading 1.8% Higher - Here's Why

Key Points

• Cisco shares rose 1.8% to $111.46 amid improving analyst sentiment, including upgraded ratings and higher price targets. The stock carries a “Moderate Buy” consensus rating with an average target of $129.68.
• Cisco’s latest quarter exceeded expectations, with adjusted earnings of $1.22 per share, revenue of $17.25 billion, and year-over-year sales growth of 17.6%. Its AI infrastructure and cybersecurity partnership with NVIDIA is also supporting investor interest.
• The company declared a quarterly dividend of $0.42, equivalent to a 1.5% annual yield, though investors face competition from faster-growing AI infrastructure companies and potential valuation risks if Cisco’s growth slows.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report)'s share price was up 1.8% on Monday . The company traded as high as $111.50 and last traded at $111.46. 21,167,685 shares were traded during trading, a decline of 7% from the average session volume of 22,663,857 shares. The stock had previously closed at $109.51.

Cisco Systems News Roundup

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

• Positive Sentiment: Analyst sentiment improves: Wall Street Zen upgraded Cisco to Buy, while MarketBeat identified the company as one of five dividend stocks combining income, earnings growth, and Moderate Buy analyst support. Wall Street Zen Upgrades Cisco Systems to Buy Five Dividend Stocks That Combine Income, Earnings Growth, and Wall Street Support
• Positive Sentiment: AI and cybersecurity exposure: Cisco is highlighted as a partner in NVIDIA’s expanding cybersecurity push. The relationship could support demand for Cisco’s security products and reinforce its positioning in AI-related infrastructure. These Three Stocks Sit at the Center of NVIDIA’s Cybersecurity Push
• Positive Sentiment: Solid operating backdrop: Cisco’s latest reported quarter exceeded consensus expectations for both earnings and revenue, with sales up 17.6% year over year. Management’s fiscal-year guidance and the company’s dividend profile provide additional support for investor interest.
• Neutral Sentiment: Increased investor attention: Cisco has become a trending stock on Zacks, but the coverage primarily advises investors to evaluate earnings estimates, valuation, and business prospects rather than announcing a new catalyst. Here Is What to Know Beyond Why Cisco Systems Is a Trending Stock
• Negative Sentiment: Competitive and valuation risks: Articles comparing Cisco with Arista Networks, Dell, and other AI infrastructure companies underscore the risk that faster-growing rivals could capture more AI-related spending. Commentary also cautions that Cisco’s growth history and current valuation may limit upside if expansion slows. Dell Rides on Growing AI Clientele Two Growth Stocks with All-Star Potential and One We Avoid

Analysts Set New Price Targets

Several research firms recently weighed in on CSCO. Freedom Capital raised Cisco Systems from a "hold" rating to a "strong-buy" rating in a research report on Sunday, August 16th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Cisco Systems in a research report on Wednesday, August 26th. Morgan Stanley 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. Truist Financial raised 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. Finally, 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. Two research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, Cisco Systems currently has an average rating of "Moderate Buy" and an average target price of $129.68.

Cisco Systems Price Performance

The company has a market cap of $439.44 billion, a price-to-earnings ratio of 33.37, a price-to-earnings-growth ratio of 2.28 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 $113.03 and a two-hundred day moving average price of $104.56.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted 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 for the quarter, compared to the consensus estimate of $16.84 billion. During the same quarter in the previous year, the company earned $0.99 earnings per share. The business's 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 research analysts anticipate that Cisco Systems, Inc. will post 4.43 EPS for the current fiscal year.

Cisco Systems Dividend Announcement

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

Insider Activity

In other Cisco Systems news, insider Jeetendra I. Patel sold 7,170 shares of the company's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $111.57, for a total transaction of $799,956.90. Following the sale, 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 filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,760 shares of the firm's stock in a transaction that occurred 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 sale, the executive vice president directly owned 165,276 shares of the company's stock, valued at approximately $18,586,938.96. The trade was a 1.64% 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. Over the last ninety days, insiders sold 44,869 shares of company stock valued at $5,005,620. 0.01% of the stock is owned by company insiders.

Institutional Trading of Cisco Systems

Several large investors have recently made changes to their positions in the business. MidAtlantic Capital Management Inc. bought a new position in shares of Cisco Systems in the fourth quarter worth about $25,000. Networth Advisors LLC grew its stake in shares of Cisco Systems by 276.4% during the first 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. Financial Life Planners acquired a new stake in shares of Cisco Systems in the first quarter valued at approximately $27,000. Manning & Napier Advisors LLC increased its holdings in shares of Cisco Systems by 137.0% in the first 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 in the last quarter. Finally, Osbon Capital Management LLC bought a new position in Cisco Systems in the 4th quarter worth approximately $32,000. Institutional investors own 73.33% of the company's stock.

About Cisco Systems

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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