Cisco Systems (NASDAQ:CSCO) Price Target Cut to $120.00 by Analysts at Citigroup

Cisco Systems (NASDAQ:CSCO) had its price target lowered by Citigroup from $139.00 to $120.00 in a report published on Friday morning,Benzinga reports. The brokerage currently has a buy rating on the network equipment provider’s stock.

Other research analysts also recently issued research reports about the stock. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Cisco Systems in a research note on Wednesday, August 26th. Truist Financial decreased their target price on shares of Cisco Systems from $140.00 to $127.00 and set a “buy” rating on the stock in a research report on Friday. Barclays decreased their target price on shares of Cisco Systems from $123.00 to $109.00 and set an “equal weight” rating on the stock in a research report on Friday. UBS Group boosted their target price on shares of Cisco Systems from $132.00 to $138.00 and gave the company a “buy” rating in a report on Thursday, August 13th. Finally, Wall Street Zen lowered shares of Cisco Systems from a “buy” rating to a “hold” rating in a research report on Saturday, November 7th. Three equities research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, Cisco Systems has a consensus rating of “Moderate Buy” and an average target price of $125.64.

Cisco Systems Trading Down 6.2%

Shares of NASDAQ:CSCO traded down $6.37 during midday trading on Friday, reaching $95.64. The company’s stock had a trading volume of 28,551,419 shares, compared to its average volume of 19,473,690. The firm has a market cap of $377.07 billion, a price-to-earnings ratio of 25.44, a price-to-earnings-growth ratio of 2.09 and a beta of 1.01. The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39. Cisco Systems has a 1 year low of $72.80 and a 1 year high of $130.37. The business has a 50 day moving average price of $107.76 and a 200 day moving average price of $102.21.

Cisco Systems (NASDAQ:CSCO) last released its earnings results on Thursday, November 12th. The network equipment provider reported $1.40 EPS for the quarter, beating the consensus estimate of $1.33 by $0.07. Cisco Systems had a return on equity of 33.06% and a net margin of 22.34%. The firm had revenue of $18.52 billion during the quarter, compared to analyst estimates of $18.12 billion. During the same period in the prior year, the firm posted $1.00 earnings per share. Cisco Systems has set its Q2 2027 guidance at 1.340-1.360 EPS and its FY 2027 guidance at 5.470-5.530 EPS. Research analysts forecast that Cisco Systems will post 4.48 EPS for the current year.

Cisco Systems Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, January 20th. Shareholders of record on Monday, January 4th will be given a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend is Monday, January 4th. Cisco Systems’s payout ratio is 50.30%.

Insider Activity

In other news, EVP Thimaya Subaiya sold 312 shares of the firm’s stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $110.18, for a total value of $34,376.16. Following the transaction, the executive vice president directly owned 127,661 shares in the company, valued at $14,065,688.98. This trade represents a 0.24% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 680 shares of Cisco Systems stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $110.18, for a total value of $74,922.40. Following the completion of the transaction, the executive vice president directly owned 163,337 shares in the company, valued at $17,996,470.66. This represents a 0.41% 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. Insiders have sold 6,824 shares of company stock valued at $759,392 over the last 90 days. 0.01% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cisco Systems

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Bridgewater Advisors Inc. purchased a new stake in shares of Cisco Systems during the 2nd quarter valued at about $6,442,000. Beacon Pointe Advisors LLC acquired a new position in Cisco Systems during the 2nd quarter worth approximately $60,009,000. Western Wealth Management LLC boosted its holdings in Cisco Systems by 60.5% in the 1st quarter. Western Wealth Management LLC now owns 76,372 shares of the network equipment provider’s stock worth $5,926,000 after acquiring an additional 28,792 shares during the period. ABN AMRO Bank N.V. purchased a new position in Cisco Systems in the 2nd quarter worth approximately $19,114,000. Finally, Envestnet Portfolio Solutions Inc. grew 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 valued at $47,287,000 after acquiring an additional 71,774 shares in the last quarter. Institutional investors and hedge funds own 73.33% of the company’s stock.

Key Stories Impacting Cisco Systems

These are some of the CSCO stories that stood out recently:

• Positive Sentiment: Cisco reported revenue of $18.5 billion and adjusted EPS of $1.40, beating estimates. It raised fiscal 2027 revenue guidance to $74.8–$75.8 billion and EPS guidance to $5.47–$5.53, and lifted its AI revenue target to $9 billion. Strong AI-infrastructure and networking demand underpin the outlook. Reuters: Cisco raises annual revenue forecast
• Negative Sentiment: Fiscal Q1 product orders rose 21%, but missed expectations and slowed from the prior period, raising questions about the pace of demand growth. Yahoo Finance: Cisco down on expectations miss
• Negative Sentiment: Investors also focused on a 2.5-percentage-point decline in non-GAAP gross margin. A richer mix of AI networking hardware and higher memory costs are weighing on margins, tempering the earnings and guidance beats. Cisco shares and AI networking margin pressure

About Cisco Systems

Cisco Systems, Inc. develops networking, cybersecurity, collaboration and observability technologies for businesses, governments and other organizations. Its products include routers, switches, wireless systems and data center infrastructure, along with security software and services that help organizations connect and protect their networks. The company also provides collaboration tools through its Webex platform and observability capabilities through its software offerings, including technology from Splunk, which Cisco acquired in 2024.