Cisco Systems (NASDAQ:CSCO) Shares Down 5.1% on Analyst Downgrade

Shares of Cisco Systems, Inc. (NASDAQ:CSCO) dropped 5.1% during mid-day trading on Tuesday after Piper Sandler lowered their price target on the stock from $132.00 to $125.00. Piper Sandler currently has a neutral rating on the stock. Cisco Systems traded as low as $106.56 and last traded at $105.7670. Approximately 8,318,878 shares traded hands during trading, a decline of 63% from the average daily volume of 22,646,293 shares. The stock had previously closed at $111.46.

CSCO has been the subject of several other reports. Zacks Research cut Cisco Systems from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 4th. Deutsche Bank Aktiengesellschaft started coverage on shares of Cisco Systems in a report on Tuesday, September 1st. They issued a “buy” rating and a $135.00 target price for the company. Barclays boosted their target price on shares of Cisco Systems from $121.00 to $123.00 and gave the company an “equal weight” rating in a report on Thursday, August 13th. UBS Group raised their price target on Cisco Systems from $132.00 to $138.00 and gave the stock a “buy” rating in a report on Thursday, August 13th. Finally, HSBC cut Cisco Systems from a “buy” rating to a “hold” rating and reduced their price target for the company from $137.00 to $120.00 in a research report on Friday, August 14th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $129.36.

Insider Transactions at Cisco Systems

In related news, EVP Thimaya Subaiya sold 5,832 shares of the business’s stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $111.47, for a total value of $650,093.04. Following the completion of the sale, the executive vice president owned 128,382 shares in the company, valued at $14,310,741.54. The trade was a 4.35% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Deborah Stahlkopf sold 6,487 shares of the company’s stock in a transaction on Friday, August 14th. The shares were sold at an average price of $111.53, for a total transaction of $723,495.11. Following the completion of the sale, the executive vice president directly owned 167,116 shares of the company’s stock, valued at $18,638,447.48. This trade represents a 3.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Company insiders own 0.01% of the company’s stock.

Trending Headlines about Cisco Systems

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

• Positive Sentiment: Cisco’s AI and cybersecurity positioning remains a supportive long-term theme. Its Splunk integration is expanding capabilities in network visibility, security, and enterprise AI governance, including self-managed AI agents operating behind corporate firewalls. Cisco Moves Higher as Splunk Takes Agents Behind the Firewall
• Positive Sentiment: Recent fundamentals remain strong: Cisco’s latest quarterly release showed revenue of approximately $17.3 billion, up about 18% year over year, and non-GAAP EPS of $1.22, exceeding consensus. Fiscal 2027 guidance also indicated continued growth.
• Positive Sentiment: Analyst price targets remain generally above recent trading levels, with a six-month median target of $130 and some targets as high as $150. Cisco’s dividend and announced share-repurchase program may also provide shareholder support.

Institutional Trading of Cisco Systems

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CSCO. Cozad Asset Management Inc. increased its holdings in shares of Cisco Systems by 0.3% during the 1st quarter. Cozad Asset Management Inc. now owns 26,203 shares of the network equipment provider’s stock worth $2,033,000 after acquiring an additional 87 shares during the last quarter. Dogwood Wealth Management LLC increased its position in Cisco Systems by 3.9% during the 2nd quarter. Dogwood Wealth Management LLC now owns 2,413 shares of the network equipment provider’s stock worth $283,000 after purchasing an additional 90 shares in the last quarter. August Group Capital Ltd boosted its holdings in shares of Cisco Systems by 2.0% during the 2nd quarter. August Group Capital Ltd now owns 4,723 shares of the network equipment provider’s stock valued at $555,000 after acquiring an additional 91 shares in the last quarter. Financial Insights Inc. grew its holdings in shares of Cisco Systems by 1.5% during the first quarter. Financial Insights Inc. now owns 6,220 shares of the network equipment provider’s stock worth $483,000 after purchasing an additional 92 shares during the last quarter. Finally, CPA Asset Management Group LLC increased its position in Cisco Systems by 1.8% in the 2nd quarter. CPA Asset Management Group LLC now owns 5,335 shares of the network equipment provider’s stock valued at $627,000 after acquiring an additional 93 shares during the period. Hedge funds and other institutional investors own 73.33% of the company’s stock.

Cisco Systems Price Performance

The stock has a market capitalization of $413.85 billion, a price-to-earnings ratio of 31.45, a P/E/G ratio of 2.28 and a beta of 1.00. The company has a fifty day simple moving average of $112.87 and a 200 day simple moving average of $104.79. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.79 and a current ratio of 0.93.

Cisco Systems (NASDAQ:CSCO) last issued 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. The firm had revenue of $17.25 billion for the quarter, compared to the consensus estimate of $16.84 billion. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The company’s revenue for the quarter was up 17.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.99 EPS. 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 research analysts forecast that Cisco Systems, Inc. will post 4.43 EPS for the current fiscal year.

Cisco Systems Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 21st. Stockholders of record on Friday, October 2nd will be paid a $0.42 dividend. The ex-dividend date is Friday, October 2nd. This represents a $1.68 annualized dividend and a dividend yield of 1.6%. Cisco Systems’s payout ratio is currently 50.30%.

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.