Cisco Systems (NASDAQ:CSCO) Stock Price Down 3.3% – Time to Sell?

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

Trending Headlines about Cisco Systems

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

• Positive Sentiment: AI infrastructure collaboration: Cisco and NVIDIA are developing a 400G optical standard for AI data centers, designed to increase bandwidth density and support an open hardware ecosystem. The initiative could strengthen Cisco’s position in large-scale AI networking. Cisco Backs a New 400G Optical Standard for AI Data Centers
• Positive Sentiment: Strong demand and sales momentum: Cisco’s AI infrastructure spending and campus-network upgrades are supporting demand. Analysts also highlighted the company’s 17.6% year-over-year quarterly sales growth—the fastest pace in roughly a decade—as evidence of improving fundamentals. How Rare Is Cisco’s Record Sales Growth?
• Positive Sentiment: Relative valuation appeal: A comparison with Astera Labs argues that Cisco offers greater potential upside at a lower valuation while benefiting from robust networking demand, though Astera has delivered stronger recent stock performance. ALAB vs. CSCO: Which AI Infrastructure Stock Is a Better Buy?
• Neutral Sentiment: Recurring-revenue question: Investors are assessing whether Cisco can sustain software and support renewals after the current equipment-upgrade cycle slows. Recurring revenue would provide stability, but the articles do not offer new renewal data. Can Software Renewals Outlast the Networking Upgrade Cycle?
• Negative Sentiment: Competitive and headline risks: Arista Networks has outperformed Cisco in AI networking, underscoring competitive concerns. Separately, Cisco’s multimillion-dollar donation to a White House ballroom project could create reputational or political controversy, although it has no direct financial impact disclosed. Nvidia and Cisco Confirm Donations to White House Ballroom

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on CSCO shares. Piper Sandler decreased their price target on Cisco Systems from $132.00 to $125.00 and set a “neutral” rating on the stock in a report on Tuesday, September 22nd. Barclays boosted their price objective on Cisco Systems from $121.00 to $123.00 and gave the stock an “equal weight” rating in a report on Thursday, August 13th. Wells Fargo & Company upped their target price on shares of Cisco Systems from $130.00 to $150.00 and gave the company an “overweight” rating in a research report on Thursday, August 13th. Morgan Stanley raised their target price on shares of Cisco Systems from $130.00 to $135.00 and gave the company an “overweight” rating in a research note on Thursday, August 13th. Finally, HSBC lowered shares of Cisco Systems from a “buy” rating to a “hold” rating and reduced their target price for the company from $137.00 to $120.00 in a research note on Friday, August 14th. Three analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $128.52.

Cisco Systems Stock Down 2.2%

The firm’s 50-day simple moving average is $111.38 and its 200 day simple moving average is $108.87. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.79 and a current ratio of 0.93. The company has a market cap of $423.39 billion, a P/E ratio of 32.15, a PEG ratio of 2.29 and a beta of 0.99.

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 return on equity of 30.16% and a net margin of 20.95%. The business had revenue of $17.25 billion for the quarter, compared to analyst estimates of $16.84 billion. During the same period last year, the company earned $0.99 EPS. The firm’s revenue was up 17.6% on a year-over-year basis. 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, research analysts forecast that Cisco Systems, Inc. will post 4.42 earnings per share for the current fiscal year.

Cisco Systems Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 21st. Shareholders 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 50.30%.

Insider Activity at Cisco Systems

In other news, EVP Thimaya Subaiya sold 5,832 shares of the business’s stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $111.47, for a total transaction of $650,093.04. Following the completion of the transaction, the executive vice president directly owned 128,382 shares in the company, valued at approximately $14,310,741.54. The trade was a 4.35% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,760 shares of the company’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $112.46, for a total value of $310,389.60. Following the completion of the sale, the executive vice president directly owned 165,276 shares of the company’s stock, valued at approximately $18,586,938.96. This trade represents 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. In the last three months, insiders sold 44,869 shares of company stock worth $5,005,620. 0.01% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cisco Systems

Several large investors have recently bought and sold shares of the company. Halbert Hargrove Global Advisors LLC grew its holdings in shares of Cisco Systems by 142.5% in the 3rd quarter. Halbert Hargrove Global Advisors LLC now owns 257 shares of the network equipment provider’s stock valued at $28,000 after buying an additional 151 shares during the period. Blueline Advisors LLC acquired a new stake in Cisco Systems in the 3rd quarter valued at $32,000. Networth Advisors LLC increased its position in shares of Cisco Systems by 276.4% in the first quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider’s stock valued at $26,000 after acquiring an additional 246 shares during the last quarter. GK Wealth Management LLC bought a new stake in shares of Cisco Systems during the 3rd quarter worth approximately $37,000. Finally, Manning & Napier Advisors LLC raised its position in Cisco Systems by 137.0% during 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 in 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 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.