Cisco Systems (NASDAQ:CSCO) Stock Falls 2.2% – Here’s What Happened

Cisco Systems, Inc. (NASDAQ:CSCO) was down 2.2% on Thursday. The stock traded as low as $103.58 and last traded at $104.89. Approximately 17,067,098 shares changed hands during mid-day trading, a decline of 23% from the average session volume of 22,106,855 shares. The stock had previously closed at $107.26.

Analysts Set New Price Targets

A number of equities analysts have weighed in on CSCO shares. KeyCorp raised their target price on shares of Cisco Systems from $130.00 to $135.00 and gave the company an “overweight” rating in a research note on Thursday, August 13th. Barclays upped their price target on Cisco Systems from $121.00 to $123.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 13th. Wells Fargo & Company lifted their target price on Cisco Systems from $130.00 to $150.00 and gave the company an “overweight” rating in a research note on Thursday, August 13th. UBS Group boosted their price target on shares of Cisco Systems from $132.00 to $138.00 and gave the stock a “buy” rating in a research report on Thursday, August 13th. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Cisco Systems in a research report on Wednesday, August 26th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $128.52.

Cisco Systems Price Performance

The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.79 and a current ratio of 0.93. The stock’s 50 day simple moving average is $110.18 and its 200-day simple moving average is $109.86. The firm has a market cap of $419.89 billion, a price-to-earnings ratio of 31.89, a price-to-earnings-growth ratio of 2.18 and a beta of 0.99.

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

Cisco Systems Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd were paid a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend was Friday, October 2nd. Cisco Systems’s payout ratio is 50.30%.

Insider Transactions at Cisco Systems

In related news, EVP Oliver Tuszik sold 680 shares of Cisco Systems stock in a transaction that occurred on 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. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Deborah Stahlkopf sold 6,487 shares of Cisco Systems stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $111.53, for a total transaction of $723,495.11. Following the sale, the executive vice president directly owned 167,116 shares in the company, valued at approximately $18,638,447.48. The trade was a 3.74% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 44,869 shares of company stock valued at $5,005,620. 0.01% of the stock is currently owned by company insiders.

Institutional Trading of Cisco Systems

A number of hedge funds and other institutional investors have recently bought and sold shares of CSCO. Networth Advisors LLC grew its holdings 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 worth $26,000 after purchasing an additional 246 shares during the last quarter. Financial Life Planners purchased a new stake in shares of Cisco Systems in the 1st quarter valued at about $27,000. Manning & Napier Advisors LLC boosted its position 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 valued at $27,000 after purchasing an additional 200 shares during the period. Halbert Hargrove Global Advisors LLC boosted its position in shares of Cisco Systems by 142.5% in the 3rd quarter. Halbert Hargrove Global Advisors LLC now owns 257 shares of the network equipment provider’s stock valued at $28,000 after purchasing an additional 151 shares during the period. Finally, Kings Path Partners LLC purchased a new position in Cisco Systems during the 3rd quarter worth approximately $31,000. 73.33% of the stock is currently owned by institutional investors and hedge funds.

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.