Cisco Systems (NASDAQ:CSCO) Stock Price Up 1.9% – Should You Buy?

Cisco Systems, Inc. (NASDAQ:CSCO) rose 1.9% on Thursday . The company traded as high as $120.32 and last traded at $119.54. Approximately 51,444,399 shares changed hands during mid-day trading, an increase of 116% from the average daily volume of 23,804,207 shares. The stock had previously closed at $117.33.

Key Cisco Systems News

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

• Positive Sentiment: Cisco was highlighted as a top AI-screen name after strong earnings and AI infrastructure demand, which supports the bull case for continued revenue growth.
• Positive Sentiment: Equinix expanded partnerships with Cisco and NVIDIA to accelerate enterprise AI adoption, signaling deeper demand for Cisco’s networking ecosystem in AI data centers.
• Positive Sentiment: Analysts and market commentary continue to point to Cisco as a blue-chip beneficiary of the broader risk-on and AI-driven market backdrop.
• Positive Sentiment: Rhino Networks’ comments on Cisco’s unified networking strategy for SMBs underscore the company’s push to combine traditional networking with cloud-managed Meraki offerings, which could broaden its addressable market.
• Neutral Sentiment: A separate article questioned whether Cisco’s post-rally valuation is still reasonable, suggesting investors are increasingly weighing upside against a stretched share price after a strong run.
• Neutral Sentiment: Comparative pieces on Cisco versus other tech names kept the stock in focus but did not introduce a direct new catalyst.
• Negative Sentiment: EVP Thimaya K. Subaiya sold 7,127 shares under a pre-arranged trading plan, which can modestly pressure sentiment even though the transaction appears routine.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on CSCO. Truist Financial began coverage on Cisco Systems in a report on Tuesday, March 31st. They set a “buy” rating and a $94.00 target price for the company. Evercore boosted their price target on shares of Cisco Systems from $110.00 to $150.00 and gave the stock an “outperform” rating in a research report on Thursday, May 14th. HSBC raised Cisco Systems from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $77.00 to $137.00 in a research note on Friday, May 15th. KeyCorp boosted their target price on shares of Cisco Systems from $87.00 to $125.00 and gave the stock an “overweight” rating in a report on Thursday, May 14th. Finally, Erste Group Bank lowered shares of Cisco Systems from a “buy” rating to a “hold” rating in a research note on Wednesday, February 18th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $122.90.

Cisco Systems Trading Up 1.9%

The firm has a market capitalization of $471.16 billion, a PE ratio of 38.81, a price-to-earnings-growth ratio of 3.05 and a beta of 1.01. The company has a debt-to-equity ratio of 0.40, a current ratio of 0.92 and a quick ratio of 0.81. The company has a fifty day moving average of $104.65 and a 200-day moving average of $87.48.

Cisco Systems (NASDAQ:CSCO) last issued its earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 EPS for the quarter, beating analysts’ consensus estimates of $1.03 by $0.03. Cisco Systems had a return on equity of 28.44% and a net margin of 20.14%.The firm had revenue of $15.84 billion for the quarter, compared to the consensus estimate of $15.56 billion. During the same quarter in the previous year, the company posted $0.96 earnings per share. The business’s quarterly revenue was up 12.0% compared to the same quarter last year. 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. On average, sell-side analysts anticipate that Cisco Systems, Inc. will post 3.54 earnings per share for the current fiscal year.

Cisco Systems Dividend Announcement

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 issued a dividend of $0.42 per share. The ex-dividend date is Monday, July 6th. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.4%. Cisco Systems’s dividend payout ratio (DPR) is currently 54.55%.

Insider Buying and Selling

In related news, CEO Charles Robbins sold 21,400 shares of the firm’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $120.03, for a total value of $2,568,642.00. Following the transaction, the chief executive officer directly owned 637,085 shares in the company, valued at approximately $76,469,312.55. This trade represents a 3.25% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 7,127 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $119.91, for a total value of $854,598.57. Following the completion of the sale, the executive vice president directly owned 140,857 shares in the company, valued at approximately $16,890,162.87. This represents a 4.82% 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 ninety days, insiders have sold 47,650 shares of company stock valued at $5,668,823. 0.01% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cisco Systems

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. MidAtlantic Capital Management Inc. bought a new position in Cisco Systems during the fourth quarter valued at about $25,000. Intesa Sanpaolo Wealth Management acquired a new stake in shares of Cisco Systems in the 4th quarter valued at $25,000. Networth Advisors LLC grew its stake in Cisco Systems by 276.4% during the first quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider’s stock worth $26,000 after buying an additional 246 shares during the last quarter. Financial Life Planners bought a new stake in shares of Cisco Systems during the first quarter worth $27,000. Finally, Manning & Napier Advisors LLC raised its stake in shares of Cisco Systems by 137.0% in the first quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider’s stock worth $27,000 after acquiring an additional 200 shares during the last quarter. Institutional investors own 73.33% of the company’s stock.

About Cisco Systems

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.