Cisco Systems (NASDAQ:CSCO) Stock Falls 2.8% – Should You Sell?

Cisco Systems, Inc. (NASDAQ:CSCO)’s stock price dropped 2.8% during trading on Monday. The stock traded as low as $101.41 and last traded at $101.61. 21,183,115 shares traded hands during mid-day trading, a decline of 3% from the average daily volume of 21,946,537 shares. The stock had previously closed at $104.51.

Wall Street Analyst Weigh In

CSCO has been the subject of a number of analyst reports. KeyCorp increased their price target on Cisco Systems from $130.00 to $135.00 and gave the company an “overweight” rating in a report on Thursday, August 13th. UBS Group lifted their price objective on Cisco Systems from $132.00 to $138.00 and gave the stock a “buy” rating in a report on Thursday, August 13th. Barclays upped their target price on Cisco Systems from $121.00 to $123.00 and gave the company an “equal weight” rating in a research 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. Finally, Rosenblatt Securities increased their target price on Cisco Systems from $150.00 to $165.00 and gave the company a “buy” rating in a research note 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 issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $128.52.

Cisco Systems Trading Up 0.6%

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 business’s 50 day moving average price is $109.52 and its 200-day moving average price is $101.42. The firm has a market cap of $408.49 billion, a price-to-earnings ratio of 28.06, a price-to-earnings-growth ratio of 2.14 and a beta of 1.01.

Cisco Systems (NASDAQ:CSCO) last posted its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, topping analysts’ consensus estimates of $1.17 by $0.05. The business had revenue of $17.25 billion during the quarter, compared to the consensus estimate of $16.84 billion. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%. The company’s revenue for the quarter was up 17.6% compared to the same quarter last year. During the same period last year, the firm earned $0.99 earnings per share. 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. Equities analysts expect that Cisco Systems, Inc. will post 4.42 EPS for the current year.

Cisco Systems Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 21st. Stockholders of record on Friday, October 2nd were given a $0.42 dividend. The ex-dividend date was Friday, October 2nd. This represents a $1.68 annualized dividend and a dividend yield of 1.6%. Cisco Systems’s dividend payout ratio (DPR) is presently 50.30%.

Insiders Place Their Bets

In related news, EVP Oliver Tuszik sold 680 shares of the company’s stock in a transaction that occurred on 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 represents a 0.41% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeetendra Patel sold 7,170 shares of the company’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $111.57, for a total value of $799,956.90. Following the sale, the insider directly owned 230,593 shares in the company, valued at approximately $25,727,261.01. This represents a 3.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 44,869 shares of company stock worth $5,005,620. Corporate insiders own 0.01% of the company’s stock.

Institutional Trading of Cisco Systems

A number of institutional investors and hedge funds have recently modified their holdings of the business. Bridgewater Advisors Inc. bought a new stake in shares of Cisco Systems in the 2nd quarter worth approximately $6,442,000. Beacon Pointe Advisors LLC acquired a new position in Cisco Systems during the 2nd quarter valued at approximately $60,009,000. Western Wealth Management LLC grew its stake in Cisco Systems by 60.5% during the 1st quarter. Western Wealth Management LLC now owns 76,372 shares of the network equipment provider’s stock worth $5,926,000 after buying an additional 28,792 shares during the last quarter. ABN AMRO Bank N.V. bought a new position in Cisco Systems during the 2nd quarter worth $19,114,000. Finally, Envestnet Portfolio Solutions Inc. increased its position in Cisco Systems by 24.6% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 363,506 shares of the network equipment provider’s stock worth $47,287,000 after buying an additional 71,774 shares during the period. 73.33% of the stock is owned by institutional investors and hedge funds.

Cisco Systems Company Profile

Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration and observability solutions for businesses, government organizations and service providers. Its offerings include routers, switches, wireless networking equipment, data-center infrastructure, security software and services, as well as technologies that support cloud and hybrid IT environments.

The company also provides collaboration tools through its Webex portfolio, cloud-managed networking through Cisco Meraki and security and observability capabilities that include technologies from Splunk, which Cisco acquired in 2024.