Cisco Systems (NASDAQ:CSCO) Trading Down 1.7% – Here’s Why

Cisco Systems, Inc. (NASDAQ:CSCO) dropped 1.7% on Monday . The stock traded as low as $117.26 and last traded at $119.25. 16,436,976 shares traded hands during mid-day trading, a decline of 31% from the average daily volume of 23,946,510 shares. The stock had previously closed at $121.31.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on CSCO shares. Morgan Stanley raised their target price on Cisco Systems from $120.00 to $130.00 and gave the company an “overweight” rating in a report on Friday, June 12th. CICC Research upped their target price on shares of Cisco Systems from $96.00 to $125.00 and gave the company an “outperform” rating in a research note on Monday, May 18th. Citic Securities raised their price objective on Cisco Systems from $90.00 to $130.00 in a research note on Friday, May 15th. Truist Financial initiated coverage on Cisco Systems in a research note on Tuesday, March 31st. They issued a “buy” rating and a $94.00 target price for the company. Finally, Wall Street Zen downgraded Cisco Systems from a “buy” rating to a “hold” rating in a report on Sunday. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, Cisco Systems has an average rating of “Moderate Buy” and an average target price of $123.14.

Cisco Systems Stock Down 1.7%

The firm’s 50 day simple moving average is $115.32 and its 200 day simple moving average is $92.18. The company has a market cap of $470.02 billion, a price-to-earnings ratio of 38.72, a price-to-earnings-growth ratio of 3.09 and a beta of 1.02. The company has a quick ratio of 0.81, a current ratio of 0.92 and a debt-to-equity ratio of 0.40.

Cisco Systems (NASDAQ:CSCO) last issued its quarterly earnings data on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.03 by $0.03. Cisco Systems had a return on equity of 28.44% and a net margin of 20.14%.The business had revenue of $15.84 billion during the quarter, compared to the consensus estimate of $15.56 billion. During the same period in the previous year, the firm posted $0.96 earnings per share. The business’s revenue was up 12.0% on a year-over-year basis. Cisco Systems has set its Q4 2026 guidance at 1.160-1.180 EPS and its FY 2026 guidance at 4.270-4.290 EPS. Sell-side analysts anticipate that Cisco Systems, Inc. will post 3.54 EPS for the current fiscal year.

Cisco Systems Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 22nd. Stockholders of record on Monday, July 6th will be paid a $0.42 dividend. The ex-dividend date of this dividend is Monday, July 6th. This represents a $1.68 annualized dividend and a dividend yield of 1.4%. Cisco Systems’s dividend payout ratio is presently 54.55%.

Insider Activity at Cisco Systems

In related news, EVP Oliver Tuszik sold 2,761 shares of Cisco Systems stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $114.61, for a total transaction of $316,438.21. Following the sale, the executive vice president directly owned 180,877 shares in the company, valued at $20,730,312.97. The trade was a 1.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeetendra I. Patel sold 7,169 shares of the company’s stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $117.28, for a total transaction of $840,780.32. Following the completion of the sale, the insider directly owned 246,737 shares of the company’s stock, valued at $28,937,315.36. The trade was a 2.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 47,650 shares of company stock valued at $5,668,823. 0.01% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in CSCO. MidAtlantic Capital Management Inc. bought a new stake in Cisco Systems during the fourth quarter worth approximately $25,000. Intesa Sanpaolo Wealth Management bought a new position in Cisco Systems during the 4th quarter valued at $25,000. Networth Advisors LLC increased its position in shares of Cisco Systems by 276.4% during the 1st quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider’s stock valued at $26,000 after purchasing an additional 246 shares during the period. Financial Life Planners acquired a new position in shares of Cisco Systems during the 1st quarter valued at $27,000. Finally, Manning & Napier Advisors LLC raised its stake in shares of Cisco Systems by 137.0% in the 1st quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider’s stock worth $27,000 after buying an additional 200 shares in the last quarter. 73.33% of the stock is currently owned by institutional investors.

Cisco Systems Company Profile

Cisco Systems, Inc is a global technology company that designs, manufactures and sells networking hardware, software and telecommunications equipment. Its core business focuses on enabling enterprise and service-provider networks through products such as routers, switches, network security appliances and wireless systems. Over time Cisco has broadened its portfolio to emphasize software-defined networking, cybersecurity, cloud infrastructure and edge computing solutions that help organizations build and manage modern IT environments.

In addition to hardware, Cisco offers a growing range of software platforms and subscription services for network management, security, analytics and collaboration.