Cisco Systems (NASDAQ:CSCO) Shares Down 2.1% – What’s Next?

Cisco Systems, Inc. (NASDAQ:CSCO) was down 2.1% during mid-day trading on Wednesday . The company traded as low as $107.55 and last traded at $107.74. Approximately 15,508,139 shares changed hands during mid-day trading, a decline of 32% from the average daily volume of 22,662,721 shares. The stock had previously closed at $110.07.

Trending Headlines about Cisco Systems

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

• Positive Sentiment: Splunk AI expansion strengthens Cisco’s growth narrative. Cisco introduced on-premises Splunk AI capabilities, including the Cisco AI POD for Splunk, allowing customers to run, secure and monitor AI workloads where their data resides. A new Tokenomics product will track AI spending and coding-agent usage, potentially improving customer adoption and demonstrating measurable returns. Cisco Delivers Trusted AI at Scale Through New Splunk Advancements
• Positive Sentiment: Expanded NVIDIA collaboration could accelerate enterprise AI adoption. Cisco and NVIDIA are extending their partnership to bring agentic AI, real-time cost tracking and AI-driven security automation to Splunk customers. The developments support Cisco’s goal of substantially increasing AI-related revenue and improve its positioning against Datadog and CrowdStrike. Cisco and Nvidia Expand Partnership
• Positive Sentiment: Management continues to emphasize cybersecurity demand. President and Chief Product Officer Jeetu Patel said security systems and regulatory guardrails must keep pace with increasingly capable AI threats, highlighting a potentially large market for Cisco’s security, observability and networking offerings. Cisco President Discusses AI Security
• Neutral Sentiment: Longer-term technology initiatives add strategic optionality. Cisco joined Verizon’s 6G Innovation Forum and is researching distributed quantum networking with Infleqtion. These efforts may broaden future opportunities but are unlikely to materially affect near-term earnings. Cisco Takes a Formal Role in 6G and Quantum Networking
• Negative Sentiment: Competitive and execution concerns remain. Investors are questioning Cisco’s campus-refresh strategy while Datadog and CrowdStrike continue expanding competing observability and cybersecurity products. At a relatively elevated earnings multiple, Cisco may need sustained AI growth to justify its valuation.
• Negative Sentiment: Small insider sales provide a modest sentiment headwind. Executives Oliver Tuszik and Thimaya Subaiya sold shares, although both transactions were conducted under pre-arranged Rule 10b5-1 plans and represented less than 1% of their respective holdings. Cisco Insider Sales

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the stock. HSBC downgraded shares of Cisco Systems from a “buy” rating to a “hold” rating and dropped their target price for the stock from $137.00 to $120.00 in a report on Friday, August 14th. Wells Fargo & Company boosted their price objective on Cisco Systems from $130.00 to $150.00 and gave the company an “overweight” rating in a research report on Thursday, August 13th. Truist Financial increased their target price on Cisco Systems from $125.00 to $140.00 and gave the stock a “buy” rating in a research report on Thursday, August 13th. Weiss Ratings reissued a “buy (b)” rating on shares of Cisco Systems in a research note on Wednesday, August 26th. Finally, The Goldman Sachs Group boosted their price target on Cisco Systems from $116.00 to $125.00 and gave the stock a “neutral” rating in a 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 MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $129.68.

Cisco Systems Stock Performance

The company has a market capitalization of $424.77 billion, a P/E ratio of 32.26, a price-to-earnings-growth ratio of 2.29 and a beta of 1.00. The business has a 50 day moving average of $113.54 and a 200 day moving average of $103.93. The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39.

Cisco Systems (NASDAQ:CSCO) last issued its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.17 by $0.05. The business had revenue of $17.25 billion for the quarter, compared to analysts’ expectations of $16.84 billion. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%.The company’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. On average, sell-side analysts predict that Cisco Systems, Inc. will post 4.43 earnings per share for the current year.

Cisco Systems Dividend Announcement

The firm also recently declared 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. The ex-dividend date of this dividend is Friday, October 2nd. This represents a $1.68 dividend on an annualized basis and a yield of 1.6%. Cisco Systems’s dividend payout ratio is presently 50.30%.

Insiders Place Their Bets

In related news, EVP Oliver Tuszik sold 2,760 shares of the stock in a transaction dated Friday, August 14th. The shares were 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 trade represents a 1.64% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,628 shares of Cisco Systems stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $111.54, for a total value of $2,412,387.12. Following the completion of 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. Over the last ninety days, insiders sold 44,869 shares of company stock worth $5,005,620. Insiders own 0.01% of the company’s stock.

Institutional Investors Weigh In On Cisco Systems

Institutional investors have recently modified their holdings of the stock. Bridgewater Advisors Inc. purchased a new position in Cisco Systems in the second quarter valued at $6,442,000. WCG Wealth Advisors LLC boosted its stake in shares of Cisco Systems by 101.8% during the 4th quarter. WCG Wealth Advisors LLC now owns 107,306 shares of the network equipment provider’s stock worth $8,266,000 after acquiring an additional 54,141 shares in the last quarter. Beacon Pointe Advisors LLC acquired a new stake in shares of Cisco Systems during the 2nd quarter valued at about $60,009,000. Vise Technologies Inc. grew its position in shares of Cisco Systems by 47.1% during the 4th quarter. Vise Technologies Inc. now owns 200,341 shares of the network equipment provider’s stock valued at $15,432,000 after acquiring an additional 64,144 shares during the period. Finally, ABN AMRO Bank N.V. purchased a new position in shares of Cisco Systems in the 2nd quarter valued at about $19,114,000. 73.33% of the stock is owned by 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.