Cisco Systems (NASDAQ:CSCO) Shares Down 2.6% – Should You Sell?

Cisco Systems, Inc. (NASDAQ:CSCO) traded down 2.6% during mid-day trading on Monday. The stock traded as low as $114.13 and last traded at $115.34. Approximately 14,456,278 shares traded hands during trading, a decline of 35% from the average daily volume of 22,401,277 shares. The stock had previously closed at $118.39.

Wall Street Analyst Weigh In

Several analysts recently commented on the company. KeyCorp raised their target price on Cisco Systems from $130.00 to $135.00 and gave the company an “overweight” rating in a research report on Thursday, August 13th. Sanford C. Bernstein assumed coverage on Cisco Systems in a research note on Wednesday, September 30th. They set a “market perform” rating and a $110.00 target price on the stock. Barclays boosted 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. UBS Group increased their price target on Cisco Systems from $132.00 to $138.00 and gave the stock a “buy” rating in a research note on Thursday, August 13th. Finally, Wall Street Zen raised Cisco Systems from a “hold” rating to a “buy” rating in a report on Sunday. Three investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $128.52.

Cisco Systems Trading Down 2.6%

The business’s 50 day moving average price is $112.18 and its two-hundred day moving average price is $107.97. The company has a market capitalization of $454.74 billion, a price-to-earnings ratio of 34.53, a price-to-earnings-growth ratio of 2.46 and a beta of 0.99. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.79 and a current ratio of 0.93.

Cisco Systems (NASDAQ:CSCO) last posted its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.05. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The business had revenue of $17.25 billion during the quarter, compared to analysts’ expectations of $16.84 billion. During the same period last year, the firm posted $0.99 earnings per share. The business’s 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 analysts forecast that Cisco Systems, Inc. will post 4.42 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd will be paid a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Friday, October 2nd. Cisco Systems’s dividend payout ratio (DPR) is presently 50.30%.

Insider Activity at Cisco Systems

In other news, EVP Thimaya Subaiya sold 5,832 shares of Cisco Systems stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $111.47, for a total transaction of $650,093.04. Following the transaction, the executive vice president directly owned 128,382 shares in the company, valued at approximately $14,310,741.54. This trade represents a 4.35% decrease in their position. The sale was disclosed in a document filed 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, CEO Charles Robbins sold 21,628 shares of the company’s stock in a transaction on Friday, August 14th. The shares were sold at an average price of $111.54, for a total value of $2,412,387.12. Following the completion of the sale, the chief executive officer owned 602,710 shares of the company’s stock, valued at approximately $67,226,273.40. This trade represents a 3.46% 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. Insiders sold 44,869 shares of company stock worth $5,005,620 in the last quarter. Company insiders own 0.01% of the company’s stock.

Institutional Investors Weigh In On Cisco Systems

Institutional investors and hedge funds have recently bought and sold shares of the business. Cozad Asset Management Inc. boosted its stake in shares of Cisco Systems by 0.3% during the 1st quarter. Cozad Asset Management Inc. now owns 26,203 shares of the network equipment provider’s stock worth $2,033,000 after acquiring an additional 87 shares in the last quarter. Dogwood Wealth Management LLC raised its position in shares of Cisco Systems by 3.9% during the second quarter. Dogwood Wealth Management LLC now owns 2,413 shares of the network equipment provider’s stock worth $283,000 after purchasing an additional 90 shares during the period. Green Ridge Wealth Planning LLC raised its position in shares of Cisco Systems by 1.5% during the third quarter. Green Ridge Wealth Planning LLC now owns 6,017 shares of the network equipment provider’s stock worth $648,000 after purchasing an additional 90 shares during the period. August Group Capital Ltd raised its position in shares of Cisco Systems by 2.0% during the second quarter. August Group Capital Ltd now owns 4,723 shares of the network equipment provider’s stock worth $555,000 after purchasing an additional 91 shares during the period. Finally, Financial Insights Inc. lifted its holdings in shares of Cisco Systems by 1.5% during the first quarter. Financial Insights Inc. now owns 6,220 shares of the network equipment provider’s stock valued at $483,000 after purchasing an additional 92 shares during the last quarter. 73.33% of the stock is owned by institutional investors and hedge funds.

About Cisco Systems

Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration, observability and data center solutions. Its products and services help businesses, governments, educational institutions and other organizations connect users and devices, manage infrastructure, protect digital environments and support cloud-based operations.

Cisco’s portfolio includes routers and switches, wireless networking equipment, network management software, firewalls, identity and access tools, endpoint security products, collaboration applications and observability platforms.