Cisco Systems (NASDAQ:CSCO) Shares Down 6.4% – Here’s What Happened

Cisco Systems, Inc. (NASDAQ:CSCO)’s stock price was down 6.4% during mid-day trading on Friday . The stock traded as low as $121.55 and last traded at $121.64. Approximately 32,526,878 shares traded hands during trading, an increase of 37% from the average daily volume of 23,773,289 shares. The stock had previously closed at $130.00.

Key Cisco Systems News

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

• Positive Sentiment: Jim Cramer highlighted Cisco as a top Dow performer, saying legacy tech names like Cisco are benefiting from the AI data-center boom. Jim Cramer Highlights Cisco Systems as the Top Dow Performer
• Positive Sentiment: Analyst commentary is increasingly bullish, with upgrades tied to expectations that Cisco could generate about $6 billion in FY2027 AI revenue. Analyst Upgrades Cisco Systems As It Anticipates $6 Billion in FY2027 AI Revenue
• Positive Sentiment: Reports from Cisco’s conference appearance and product rollout emphasized its AI-centric Cloud Control platform, expanded cybersecurity tools, and partnerships aimed at secure AI infrastructure, supporting the view that Cisco can monetize AI beyond hardware refresh cycles. Cisco’s AI Platforms And Cybersecurity Push Test Valuation For Investors
• Neutral Sentiment: Broader market headlines about tech selling off, rising yields, and “bubble” comparisons to Cisco’s dot-com era may create short-term volatility, but they are not specific to Cisco’s fundamentals. Equities Fall, Yields Jump Intraday After Jobs Report; Tech Leads Sell-Off
• Neutral Sentiment: Goldman Sachs reportedly remained at Hold while Morgan Stanley reiterated Buy, suggesting Wall Street is still divided on how much upside is already priced in. Goldman Sachs Remains a Hold on Cisco Systems (CSCO) Morgan Stanley Sticks to Their Buy Rating for Cisco Systems (CSCO)

Analyst Ratings Changes

Several equities research analysts recently issued reports on CSCO shares. New Street Research lifted their price objective on Cisco Systems from $82.00 to $122.00 and gave the company a “neutral” rating in a research note on Thursday, May 14th. Citic Securities lifted their price target on Cisco Systems from $90.00 to $130.00 in a research note on Friday, May 15th. Truist Financial began coverage on Cisco Systems in a research note on Tuesday, March 31st. They set a “buy” rating and a $94.00 price target for the company. Bank of America lifted their price target on Cisco Systems from $114.00 to $135.00 and gave the stock a “buy” rating in a research note on Tuesday, May 26th. Finally, DZ Bank raised Cisco Systems to a “strong-buy” rating in a research note on Friday, February 13th. Two analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat, Cisco Systems presently has a consensus rating of “Moderate Buy” and an average price target of $119.50.

Cisco Systems Stock Performance

The stock has a market cap of $479.44 billion, a PE ratio of 39.49, a P/E/G ratio of 3.10 and a beta of 1.01. The company has a fifty day moving average price of $98.05 and a 200 day moving average price of $84.96. The company has a quick ratio of 0.81, a current ratio of 0.92 and a debt-to-equity ratio of 0.40.

Cisco Systems (NASDAQ:CSCO) last released its quarterly earnings data on Wednesday, May 13th. The network equipment provider reported $1.06 EPS for the quarter, topping the consensus estimate 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 return on equity of 28.44% and a net margin of 20.14%.The company’s quarterly revenue was up 12.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.96 earnings per share. 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. Analysts expect that Cisco Systems, Inc. will post 3.54 earnings per share for the current year.

Cisco Systems Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 22nd. Stockholders of record on Monday, July 6th will be issued a $0.42 dividend. The ex-dividend date is Monday, July 6th. This represents a $1.68 annualized dividend and a dividend yield of 1.4%. Cisco Systems’s payout ratio is currently 54.55%.

Insider Transactions at Cisco Systems

In related news, insider Jeetendra I. Patel sold 7,169 shares of the business’s stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $117.28, for a total transaction of $840,780.32. Following the transaction, the insider owned 246,737 shares in the company, valued at $28,937,315.36. The trade was a 2.82% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Deborah L. Stahlkopf sold 7,981 shares of the business’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $79.50, for a total value of $634,489.50. Following the transaction, the executive vice president owned 187,097 shares in the company, valued at approximately $14,874,211.50. This represents a 4.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 51,324 shares of company stock valued at $5,559,834. 0.01% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Brighton Jones LLC grew its holdings in shares of Cisco Systems by 49.5% during the 4th quarter. Brighton Jones LLC now owns 74,187 shares of the network equipment provider’s stock worth $4,392,000 after acquiring an additional 24,562 shares during the period. Revolve Wealth Partners LLC grew its holdings in shares of Cisco Systems by 37.0% during the 4th quarter. Revolve Wealth Partners LLC now owns 9,156 shares of the network equipment provider’s stock worth $542,000 after acquiring an additional 2,474 shares during the period. Sivia Capital Partners LLC grew its holdings in shares of Cisco Systems by 7.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 10,178 shares of the network equipment provider’s stock worth $706,000 after acquiring an additional 712 shares during the period. Schnieders Capital Management LLC. grew its holdings in shares of Cisco Systems by 3.9% during the 2nd quarter. Schnieders Capital Management LLC. now owns 13,974 shares of the network equipment provider’s stock worth $969,000 after acquiring an additional 519 shares during the period. Finally, Marshall Wace LLP grew its holdings in shares of Cisco Systems by 118.1% during the 2nd quarter. Marshall Wace LLP now owns 90,650 shares of the network equipment provider’s stock worth $6,289,000 after acquiring an additional 590,650 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.