Cisco Systems (NASDAQ:CSCO) Stock Falls 1.5% – Should You Sell?

Cisco Systems, Inc. (NASDAQ:CSCO)’s share price fell 1.5% on Thursday. The stock traded as low as $108.28 and last traded at $108.59. Approximately 13,385,314 shares traded hands during trading, a decline of 39% from the average daily volume of 21,935,967 shares. The stock had previously closed at $110.29.

Cisco Systems News Roundup

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

• Positive Sentiment: AI infrastructure remains a key growth catalyst. Cisco is benefiting from rising hyperscaler demand for networking equipment, while AI workloads, 5G, Wi-Fi 7, and broader connectivity needs support the networking industry’s expansion. Cisco Gains From AI Networking Boom
• Positive Sentiment: Industry research projects the global virtualization-security market will grow from $1.7 billion in 2025 to $4.9 billion by 2032, creating potential demand for Cisco’s security, segmentation, and cloud-native offerings. Virtualization Security Market Report
• Positive Sentiment: Mobile virtualization is projected to reach $21 billion by 2032, with remote work, BYOD, 5G, and tighter data regulations supporting longer-term opportunities for Cisco’s networking and security businesses. Mobile Virtualization Market Report
• Positive Sentiment: Analysts maintain a favorable view ahead of earnings, with a reported consensus price target of $128.52, implying continued confidence in Cisco’s outlook. Cisco Consensus Price Target
• Positive Sentiment: Cisco is experimenting with an AI-assisted rewrite of approximately 98% of its code under a young engineering leader, potentially improving development speed and product productivity, although execution remains unproven. Cisco AI Code Rewrite
• Neutral Sentiment: Cisco’s upcoming report is receiving positive analyst attention after the stock outperformed the broader market, but the preview also raises the bar for results and forward guidance. Cisco Earnings Preview
• Neutral Sentiment: The company’s AI-security and quantum-safe initiatives could strengthen its long-term product portfolio, though the articles provide limited evidence of near-term financial impact. Cisco AI Security and Quantum-Safe Push
• Negative Sentiment: Competitive pressure is increasing: Dell is expanding its AI-security and cyber-resilience capabilities, potentially challenging Cisco in enterprise infrastructure and security markets. Dell Expands AI Security Capabilities
• Negative Sentiment: Recent weakness relative to the broader market suggests investors may be taking profits or demanding stronger earnings and guidance, particularly with CSCO trading at a relatively elevated earnings multiple.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the company. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Cisco Systems in a report on Wednesday, August 26th. Morgan Stanley increased their price target on shares of Cisco Systems from $130.00 to $135.00 and gave the stock an “overweight” rating in a report on Thursday, August 13th. Rosenblatt Securities raised their price target on shares of Cisco Systems from $150.00 to $165.00 and gave the stock a “buy” rating in a research report on Thursday, August 13th. Piper Sandler decreased their price objective on shares of Cisco Systems from $132.00 to $125.00 and set a “neutral” rating for the company in a research note on Tuesday, September 22nd. 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. Three research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have given 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 target price of $128.52.

Cisco Systems Stock Down 3.8%

The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39. The stock has a market cap of $412.04 billion, a PE ratio of 31.29, a P/E/G ratio of 2.26 and a beta of 0.99. The business has a 50 day moving average price of $110.00 and a 200 day moving average price of $101.01.

Cisco Systems (NASDAQ:CSCO) last announced its quarterly earnings results 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. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%. The company had revenue of $17.25 billion during the quarter, compared to analysts’ expectations of $16.84 billion. During the same period last year, the business earned $0.99 earnings per share. Cisco Systems’s quarterly revenue was up 17.6% on a year-over-year basis. 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 expect that Cisco Systems, Inc. will post 4.42 EPS for the current fiscal year.

Cisco Systems Announces Dividend

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

Insiders Place Their Bets

In related news, EVP Oliver Tuszik sold 2,760 shares of the company’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $112.46, for a total value of $310,389.60. Following the completion of the transaction, the executive vice president owned 165,276 shares of the company’s stock, valued at approximately $18,586,938.96. This represents a 1.64% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Deborah L. Stahlkopf sold 6,487 shares of the firm’s stock in a transaction that occurred on 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 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Insiders own 0.01% of the company’s stock.

Institutional Investors Weigh In On Cisco Systems

A number of institutional investors have recently added to or reduced their stakes in the stock. Chicago Partners Investment Group LLC increased its stake in Cisco Systems by 11.8% in the 3rd quarter. Chicago Partners Investment Group LLC now owns 48,505 shares of the network equipment provider’s stock valued at $5,166,000 after purchasing an additional 5,103 shares in the last quarter. Richardson Financial Services Inc. boosted its position in Cisco Systems by 10.7% during the third quarter. Richardson Financial Services Inc. now owns 5,744 shares of the network equipment provider’s stock worth $618,000 after purchasing an additional 555 shares in the last quarter. Verity Asset Management Inc. grew its holdings in Cisco Systems by 5.0% in the third quarter. Verity Asset Management Inc. now owns 5,936 shares of the network equipment provider’s stock valued at $639,000 after purchasing an additional 281 shares during the last quarter. Caldwell Trust Co grew its holdings in Cisco Systems by 0.9% in the third quarter. Caldwell Trust Co now owns 73,721 shares of the network equipment provider’s stock valued at $7,935,000 after purchasing an additional 627 shares during the last quarter. Finally, 3Chopt Investment Partners LLC increased its position in shares of Cisco Systems by 3.3% in the third quarter. 3Chopt Investment Partners LLC now owns 57,312 shares of the network equipment provider’s stock valued at $6,168,000 after buying an additional 1,853 shares in the last quarter. Institutional investors and hedge funds own 73.33% of the company’s stock.

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.