Cisco Systems (NASDAQ:CSCO) Shares Up 1.8% – Time to Buy?

Cisco Systems, Inc. (NASDAQ:CSCO) shot up 1.8% during mid-day trading on Monday . The company traded as high as $111.50 and last traded at $111.46. Approximately 21,167,685 shares traded hands during mid-day trading, a decline of 7% from the average session volume of 22,663,857 shares. The stock had previously closed at $109.51.

Key Headlines Impacting Cisco Systems

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

• Positive Sentiment: Cisco announced a collaboration with Infleqtion to develop distributed quantum-networking technologies, including quantum-memory-to-optical transduction and a prototype Universal Quantum Switch. The initiative could create a long-term growth opportunity, although it is unlikely to materially affect near-term results. Cisco Unveils Quantum Networking Push With New Distributed Systems Collaboration
• Positive Sentiment: New Cisco and Omdia research highlights rising enterprise demand for autonomous network operations: 95% of companies say current AIOps tools cannot keep pace, while more than half have begun adopting “AgenticOps.” This supports Cisco’s positioning in AI-enabled networking and cybersecurity. Cisco AI Research: AgenticOps Scaling Quickly in the Enterprise
• Positive Sentiment: Analysts and market commentary continue to identify Cisco as an established beneficiary of AI infrastructure spending because its switches and networking equipment move data between GPUs and servers. Cisco also combines AI exposure with a lower valuation than some cybersecurity peers. While GPUs Get the Headlines, These 3 Stocks Build the Networks That Actually Move Data
• Neutral Sentiment: Cisco’s latest reported quarter showed 17.6% year-over-year revenue growth, $1.22 in earnings per share and fiscal 2027 EPS guidance of $5.05 to $5.11. Those results provide a strong fundamental backdrop, but investors are currently looking beyond the recent earnings beat toward the sustainability of growth.
• Negative Sentiment: Piper Sandler maintained a Neutral rating but cut its Cisco price target to $125 from $132, citing expectations for a lower price-to-earnings multiple and fears that industry growth is peaking. The downgrade was the clearest immediate catalyst for the selloff. Piper Sandler cuts Cisco price target to $125 on growth peak fears
• Negative Sentiment: Recent insider-trading disclosures show executives selling shares, while the stock had already risen substantially over the past six months. Profit-taking and valuation concerns may be adding to the selling pressure, though the reported transactions were made under trading plans and do not indicate a new operating setback. Cisco Systems Falls as Recent Insider Selling and Profit-Taking Weigh on Shares

Analysts Set New Price Targets

Several research analysts recently commented on CSCO shares. Wells Fargo & Company increased their target price on shares of Cisco Systems from $130.00 to $150.00 and gave the stock an “overweight” rating in a report on Thursday, August 13th. Piper Sandler cut their price target on shares of Cisco Systems from $132.00 to $125.00 and set a “neutral” rating on the stock in a research report on Tuesday. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Cisco Systems in a research note on Tuesday, September 1st. They set a “buy” rating and a $135.00 price objective for the company. Zacks Research cut Cisco Systems from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 4th. Finally, Freedom Capital raised Cisco Systems from a “hold” rating to a “strong-buy” rating in a research report on Sunday, August 16th. Two 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 data from MarketBeat.com, Cisco Systems currently has a consensus rating of “Moderate Buy” and an average price target of $129.36.

Cisco Systems Stock Up 0.0%

The firm has a market capitalization of $419.77 billion, a P/E ratio of 31.84, a PEG ratio of 2.32 and a beta of 1.00. The firm’s 50 day moving average is $112.66 and its two-hundred day moving average is $104.97. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.93 and a quick ratio of 0.79.

Cisco Systems (NASDAQ:CSCO) last posted its quarterly earnings results 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. 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 analyst estimates of $16.84 billion. During the same period in the prior year, the firm posted $0.99 earnings per share. The company’s quarterly 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. Research analysts predict that Cisco Systems, Inc. will post 4.43 EPS 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 issued a dividend of $0.42 per share. The ex-dividend date 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 (DPR) is presently 50.30%.

Insider Activity

In other Cisco Systems news, EVP Deborah Stahlkopf sold 6,487 shares of the company’s stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $111.53, for a total value of $723,495.11. Following the sale, the executive vice president owned 167,116 shares in the company, valued at $18,638,447.48. This represents a 3.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya Subaiya sold 5,832 shares of Cisco Systems stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $111.47, for a total value of $650,093.04. Following the transaction, the executive vice president owned 128,382 shares of the company’s stock, valued at $14,310,741.54. This represents a 4.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 44,869 shares of company stock valued at $5,005,620. 0.01% of the stock is owned by insiders.

Hedge Funds Weigh In On Cisco Systems

Large investors have recently modified their holdings of the stock. BlackRock Inc. bought a new position in Cisco Systems in the 2nd quarter valued at about $42,129,647,000. State Street Corp grew its position in shares of Cisco Systems by 7.0% in the second quarter. State Street Corp now owns 207,106,569 shares of the network equipment provider’s stock valued at $25,278,492,000 after purchasing an additional 13,512,872 shares during the last quarter. Bank of America Corp DE bought a new position in shares of Cisco Systems during the second quarter worth approximately $5,892,379,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in Cisco Systems by 2.7% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 43,450,141 shares of the network equipment provider’s stock worth $5,103,654,000 after purchasing an additional 1,143,106 shares during the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in Cisco Systems in the 2nd quarter valued at $4,714,574,000. 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.