Cisco Systems (NASDAQ:CSCO) Stock Price Down 1.8% – What’s Next?

Cisco Systems, Inc. (NASDAQ:CSCO)’s stock price dropped 1.8% on Thursday . The company traded as low as $107.36 and last traded at $107.44. 11,286,538 shares changed hands during trading, a decline of 51% from the average daily volume of 22,856,443 shares. The stock had previously closed at $109.43.

Trending Headlines about Cisco Systems

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

• Positive Sentiment: Cisco announced a collaboration with quantum-computing company Infleqtion to research technologies for connecting, operating, and scaling distributed quantum systems. The initiative could support a long-term opportunity in quantum networking, although commercial benefits are likely distant. Infleqtion and Cisco Announce Collaboration to Advance Networked Quantum Technology
• Positive Sentiment: Cisco’s WebexOne conference will highlight enterprise use cases for AI-powered collaboration and customer experience, reinforcing the company’s positioning in AI-enabled workplace software and services. Global Industry Leaders Join Cisco’s WebexOne
• Positive Sentiment: Cisco’s AI infrastructure exposure received another potential boost from its live partnership with AMD and Humain in Saudi Arabia. The deployment combines AMD processors with Cisco Silicon One 800G networking to support GPU-as-a-service across the Middle East. AMD Partnership With Cisco Could Unlock Middle East AI Opportunity
• Neutral Sentiment: Analyst coverage remains broadly constructive, with a consensus “Moderate Buy” rating and a favorable average brokerage recommendation. However, the articles caution that sell-side ratings can be overly optimistic and should not be treated as a standalone buy signal. Cisco Receives Consensus Rating of Moderate Buy
• Negative Sentiment: Investors are concerned that Cisco’s AI-led growth is increasingly tied to hyperscale customers. A sharp increase in AI inference traffic supports demand for networking equipment, but hardware-heavy growth could pressure gross margins. Cisco Says AI Agents Consume 60% of Global Inference
• Negative Sentiment: Recent commentary also points to profit-taking and downside risk after a substantial year-to-date and 12-month advance, with Cisco trading below its 52-week high. At roughly 32 times earnings, the stock leaves less room for disappointment if hyperscaler spending, margins, or growth expectations weaken. How Far Could Cisco Stock Fall With Growth Riding on Hyperscalers?

Analyst Ratings Changes

CSCO has been the topic of a number of research analyst reports. Citigroup raised their price target on Cisco Systems from $90.00 to $112.00 and gave the company a “buy” rating in a report on Thursday, May 14th. Argus boosted their price target on shares of Cisco Systems from $100.00 to $150.00 and gave the stock a “buy” rating in a research report on Tuesday, May 19th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Cisco Systems in a research note on Wednesday, August 26th. Barclays increased their target price on shares of Cisco Systems from $121.00 to $123.00 and gave the company an “equal weight” rating in a research note on Thursday, August 13th. Finally, Bank of America upped their price target on Cisco Systems from $135.00 to $150.00 and gave the company a “buy” rating in a report on Monday, June 8th. Two investment 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 company. According to MarketBeat.com, Cisco Systems presently has an average rating of “Moderate Buy” and a consensus target price of $129.68.

Cisco Systems Trading Down 1.8%

The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39. The company has a 50-day moving average price of $113.77 and a 200 day moving average price of $103.04. The firm has a market cap of $423.59 billion, a price-to-earnings ratio of 32.17, a PEG ratio of 2.27 and a beta of 1.00.

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 business had revenue of $17.25 billion during the quarter, compared to analyst estimates of $16.84 billion. During the same period in the prior year, the firm earned $0.99 earnings per share. The firm’s 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. As a group, research analysts anticipate that Cisco Systems, Inc. will post 4.43 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

The company 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 of this dividend 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 50.30%.

Insiders Place Their Bets

In other Cisco Systems news, insider Jeetendra Patel sold 7,170 shares of Cisco Systems stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $111.57, for a total transaction of $799,956.90. Following the sale, the insider directly owned 230,593 shares of the company’s stock, valued at approximately $25,727,261.01. The trade was a 3.02% decrease in their ownership of the stock. The transaction 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, EVP Oliver Tuszik sold 2,760 shares of Cisco Systems stock in a transaction on Friday, August 14th. The shares were sold at an average price of $112.46, for a total value of $310,389.60. Following the transaction, the executive vice president directly owned 165,276 shares of the company’s stock, valued at approximately $18,586,938.96. The trade was a 1.64% 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. Insiders have sold a total of 51,004 shares of company stock valued at $5,750,920 over the last 90 days. Company insiders own 0.01% of the company’s stock.

Institutional Trading of Cisco Systems

A number of large investors have recently made changes to their positions in the company. Brighton Jones LLC boosted its stake in Cisco Systems by 49.5% in the 4th quarter. Brighton Jones LLC now owns 74,187 shares of the network equipment provider’s stock worth $4,392,000 after purchasing an additional 24,562 shares during the period. Revolve Wealth Partners LLC increased its position in Cisco Systems by 37.0% during the fourth quarter. Revolve Wealth Partners LLC now owns 9,156 shares of the network equipment provider’s stock worth $542,000 after buying an additional 2,474 shares during the last quarter. Sivia Capital Partners LLC raised its holdings in Cisco Systems by 7.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 10,178 shares of the network equipment provider’s stock valued at $706,000 after acquiring an additional 712 shares during the period. Schnieders Capital Management LLC. lifted its holdings in Cisco Systems by 3.9% during the 2nd quarter. Schnieders Capital Management LLC. now owns 13,974 shares of the network equipment provider’s stock worth $969,000 after purchasing an additional 519 shares during the last quarter. Finally, Marshall Wace LLP lifted its holdings in shares of Cisco Systems by 118.1% during the second quarter. Marshall Wace LLP now owns 90,650 shares of the network equipment provider’s stock worth $6,289,000 after buying an additional 590,650 shares in the last quarter. Institutional investors own 73.33% of the company’s stock.

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.