Cisco Systems (NASDAQ:CSCO) Shares Down 1.9% – Here’s Why

Cisco Systems, Inc. (NASDAQ:CSCO) shares fell 1.9% during mid-day trading on Thursday . The company traded as low as $107.53 and last traded at $109.66. 24,680,120 shares were traded during trading, an increase of 3% from the average session volume of 23,974,125 shares. The stock had previously closed at $111.77.

Key Cisco Systems News

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

• Positive Sentiment: Cisco is being highlighted as a key AI infrastructure play, with commentary arguing the company could benefit from rising demand for networking gear tied to AI buildouts. Price Prediction: Cisco Will Hit $170 on This Date
• Positive Sentiment: Investor sentiment is also supported by a favorable long-term track record under CEO Chuck Robbins, with a recent article pointing to strong returns since he took over in 2015. A $10,000 Investment in Cisco When Chuck Robbins Became CEO Is Worth This Much Today
• Neutral Sentiment: One analysis says Cisco stock looks fairly valued around current levels, suggesting upside may depend on future execution rather than an obvious valuation discount. Cisco (CSCO) Stock Looks About Right As Security Deal Talk Grows
• Neutral Sentiment: Cisco was also mentioned in a dividend-focused roundup of legacy tech names, reinforcing its appeal as a cash-generating, shareholder-friendly stock. 4 Tech Stocks Throwing Off Dividends
• Negative Sentiment: Technical traders are watching a weakening chart, with Cisco reportedly below its 50-day moving average and near key support, which could cap gains if buyers fail to step in. Cisco Systems (CSCO) Price Forecast: Correction Deepens as Key Support Nears

Wall Street Analyst Weigh In

Several analysts recently weighed in on CSCO shares. Piper Sandler lifted their price objective on Cisco Systems from $86.00 to $132.00 and gave the company a “neutral” rating in a report on Thursday, May 14th. Bank of America raised their target price on shares of Cisco Systems from $135.00 to $150.00 and gave the company a “buy” rating in a research report on Monday, June 8th. Argus upped 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. CICC Research increased their price objective on shares of Cisco Systems from $96.00 to $125.00 and gave the company an “outperform” rating in a research note on Monday, May 18th. Finally, Barclays lifted their price objective on shares of Cisco Systems from $76.00 to $121.00 and gave the company an “equal weight” rating in a report on Thursday, May 14th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $123.14.

Cisco Systems Trading Up 2.1%

The firm has a market capitalization of $441.20 billion, a PE ratio of 36.34, a price-to-earnings-growth ratio of 2.79 and a beta of 1.02. The company has a quick ratio of 0.81, a current ratio of 0.92 and a debt-to-equity ratio of 0.40. The company’s 50-day simple moving average is $117.40 and its 200 day simple moving average is $93.33.

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

Cisco Systems Announces Dividend

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 given a dividend of $0.42 per share. The ex-dividend date of this dividend is Monday, July 6th. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.5%. Cisco Systems’s dividend payout ratio is presently 54.55%.

Insider Activity

In related news, CEO Charles Robbins sold 21,400 shares of the company’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $120.03, for a total transaction of $2,568,642.00. Following the transaction, the chief executive officer directly owned 637,085 shares of the company’s stock, valued at $76,469,312.55. This represents a 3.25% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at 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 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 owned 140,857 shares of the company’s stock, valued at approximately $16,890,162.87. This trade 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. In the last 90 days, insiders have sold 47,650 shares of company stock worth $5,668,823. Company insiders own 0.01% of the company’s stock.

Institutional Investors Weigh In On Cisco Systems

A number of large investors have recently modified their holdings of CSCO. MidAtlantic Capital Management Inc. acquired a new position in Cisco Systems during the 4th quarter valued at approximately $25,000. Intesa Sanpaolo Wealth Management acquired a new position in shares of Cisco Systems in the 4th quarter valued at $25,000. Networth Advisors LLC increased its position in shares of Cisco Systems by 276.4% in the 1st 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 period. Financial Life Planners purchased a new position in Cisco Systems in the 1st quarter worth $27,000. Finally, Manning & Napier Advisors LLC lifted its position in Cisco Systems by 137.0% during the 1st 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 period. Hedge funds and other 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.