Cisco Systems (NASDAQ:CSCO) Stock Falls 3.3% – Should You Sell?

Cisco Systems, Inc. (NASDAQ:CSCO)’s stock price was down 3.3% on Thursday. The company traded as low as $108.45 and last traded at $109.85. 20,827,670 shares were traded during mid-day trading, a decline of 7% from the average daily volume of 22,313,926 shares. The stock had previously closed at $113.64.

Analyst Ratings Changes

Several equities analysts have issued reports on CSCO shares. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Cisco Systems in a report on Tuesday, September 1st. They issued a “buy” rating and a $135.00 price target on the stock. Morgan Stanley increased their price objective on Cisco Systems from $130.00 to $135.00 and gave the company an “overweight” rating in a report on Thursday, August 13th. Zacks Research raised Cisco Systems from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, September 30th. HSBC downgraded 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 research note on Friday, August 14th. Finally, KeyCorp upped 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. Three research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $128.52.

Cisco Systems Price Performance

The company has a debt-to-equity ratio of 0.39, a current ratio of 0.93 and a quick ratio of 0.79. The stock has a market cap of $433.09 billion, a price-to-earnings ratio of 32.89, a P/E/G ratio of 2.40 and a beta of 0.99. The stock has a fifty day moving average of $111.88 and a 200 day moving average of $108.67.

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 analysts’ consensus estimates of $1.17 by $0.05. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The company had revenue of $17.25 billion during the quarter, compared to analyst estimates of $16.84 billion. During the same period last year, the firm posted $0.99 EPS. Cisco Systems’s revenue for the quarter 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. On average, analysts expect that Cisco Systems, Inc. will post 4.42 EPS for the current fiscal year.

Cisco Systems Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 21st. Investors of record on Friday, October 2nd will be given 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 1.5%. Cisco Systems’s payout ratio is currently 50.30%.

Insider Buying and Selling

In other Cisco Systems news, EVP Oliver Tuszik sold 680 shares of the stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $110.18, for a total transaction of $74,922.40. Following the sale, the executive vice president directly owned 163,337 shares of the company’s stock, valued at approximately $17,996,470.66. This trade represents a 0.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeetendra Patel sold 7,170 shares of Cisco Systems stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $111.57, for a total value of $799,956.90. Following the transaction, the insider owned 230,593 shares of the company’s stock, valued at $25,727,261.01. The trade was a 3.02% 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. Insiders sold 44,869 shares of company stock valued at $5,005,620 in the last 90 days. 0.01% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cisco Systems

Several large investors have recently made changes to their positions in the company. Cozad Asset Management Inc. raised its position 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 purchasing an additional 87 shares during the last quarter. Dogwood Wealth Management LLC lifted its position in shares of Cisco Systems by 3.9% in the second quarter. Dogwood Wealth Management LLC now owns 2,413 shares of the network equipment provider’s stock valued at $283,000 after acquiring an additional 90 shares in the last quarter. Green Ridge Wealth Planning LLC boosted its stake in shares of Cisco Systems by 1.5% in the third quarter. Green Ridge Wealth Planning LLC now owns 6,017 shares of the network equipment provider’s stock worth $648,000 after acquiring an additional 90 shares during the last quarter. August Group Capital Ltd boosted its stake in shares of Cisco Systems by 2.0% in the second quarter. August Group Capital Ltd now owns 4,723 shares of the network equipment provider’s stock worth $555,000 after acquiring an additional 91 shares during the last quarter. Finally, Financial Insights Inc. raised its stake in Cisco Systems by 1.5% in the 1st 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 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, 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.