Cisco Systems, Inc. (NASDAQ:CSCO) Receives $129.43 Average PT from Analysts

Cisco Systems, Inc. (NASDAQ:CSCO) has been given a consensus rating of “Moderate Buy” by the twenty-three analysts that are covering the firm, Marketbeat reports. Seven equities research analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has issued a strong buy rating on the company. The average 1-year target price among brokers that have covered the stock in the last year is $129.4286.

Several analysts have recently commented on the company. Evercore raised their target price on Cisco Systems from $110.00 to $150.00 and gave the stock an “outperform” rating in a research report on Thursday, May 14th. Rosenblatt Securities raised their price objective on Cisco Systems from $150.00 to $165.00 and gave the stock a “buy” rating in a research report on Thursday, August 13th. Piper Sandler upped their target price on Cisco Systems from $86.00 to $132.00 and gave the company a “neutral” rating in a report on Thursday, May 14th. Morgan Stanley increased their price target on shares of Cisco Systems from $130.00 to $135.00 and gave the stock an “overweight” rating in a research report on Thursday, August 13th. Finally, Wells Fargo & Company raised their price target on shares of Cisco Systems from $130.00 to $150.00 and gave the stock an “overweight” rating in a report on Thursday, August 13th.

Cisco Systems Stock Performance

NASDAQ:CSCO opened at $112.90 on Friday. Cisco Systems has a twelve month low of $65.75 and a twelve month high of $130.37. The company has a current ratio of 0.93, a quick ratio of 0.79 and a debt-to-equity ratio of 0.39. The company has a 50-day moving average of $116.81 and a 200-day moving average of $99.48. The firm has a market cap of $444.99 billion, a price-to-earnings ratio of 33.80, a price-to-earnings-growth ratio of 2.38 and a beta of 1.02.

Cisco Systems (NASDAQ:CSCO) last issued its 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 business had revenue of $17.25 billion for the quarter, compared to analysts’ expectations of $16.84 billion. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%.The company’s quarterly revenue was up 17.6% on a year-over-year basis. During the same period in the previous year, the firm posted $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. Analysts forecast that Cisco Systems will post 4.09 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 21st. Stockholders of record on Friday, October 2nd will be issued a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Friday, October 2nd. Cisco Systems’s payout ratio is currently 50.30%.

Key Stories Impacting Cisco Systems

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

• Positive Sentiment: Cisco reported record quarterly revenue of approximately $17.3 billion, up 18% year over year, while non-GAAP earnings per share reached $1.22 and surpassed consensus estimates. Management also issued an optimistic fiscal 2027 outlook, supporting the growth case. Why Cisco Stock Is Down Today
• Positive Sentiment: Analysts and market commentators characterize the roughly 8% post-earnings decline as an overreaction, arguing that Cisco’s improving AI networking opportunity and strong results may provide support for the shares. Cisco: This 8% Selloff Looks Like An Overreaction
• Neutral Sentiment: The latest quarter benefited from higher hardware prices, a heavier product mix and pricing actions intended to offset rising memory costs. However, those same memory expenses and the hardware mix pressured product margins, creating a key profitability concern for investors. Cisco Grew Faster By Selling Hardware and Charging More for It
• Neutral Sentiment: Several reports highlighted exchange-traded funds that provide exposure to Cisco’s AI-driven growth while reducing the risk of holding the individual stock, indicating continued interest in the company but also investor caution after the selloff. ETFs to Buy as Cisco Shares Sink
• Negative Sentiment: HSBC downgraded Cisco to Hold, which may limit near-term upside and reflects caution regarding the stock’s valuation and post-earnings performance. Cisco Systems Cut to Hold at HSBC
• Negative Sentiment: CEO Charles Robbins and three other insiders sold a combined 38,045 shares for approximately $4.25 million. Because the transactions were executed under pre-arranged Rule 10b5-1 plans and the executives retained substantial holdings, the sales are a modest negative signal rather than a clear change in management’s outlook.

Insider Transactions at Cisco Systems

In other Cisco Systems news, insider Jeetendra I. Patel sold 7,170 shares of the business’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $111.57, for a total value of $799,956.90. Following the completion of the sale, the insider owned 230,593 shares of the company’s stock, valued at $25,727,261.01. The trade was a 3.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Deborah L. Stahlkopf sold 6,487 shares of the stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $111.53, for a total value of $723,495.11. Following the transaction, the executive vice president directly owned 167,116 shares in the company, valued at approximately $18,638,447.48. This 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. Over the last three months, insiders sold 69,179 shares of company stock valued at $7,985,229. Insiders own 0.01% of the company’s stock.

Institutional Investors Weigh In On Cisco Systems

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its position in shares of Cisco Systems by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 398,943,293 shares of the network equipment provider’s stock valued at $30,730,602,000 after purchasing an additional 4,049,893 shares during the period. BlackRock Inc. bought a new stake in shares of Cisco Systems during the 2nd quarter worth $42,129,647,000. State Street Corp grew its stake in Cisco Systems by 0.5% in the 4th quarter. State Street Corp now owns 195,521,161 shares of the network equipment provider’s stock valued at $15,060,995,000 after buying an additional 1,057,962 shares during the last quarter. Morgan Stanley grew its stake in Cisco Systems by 0.3% in the 4th quarter. Morgan Stanley now owns 75,326,258 shares of the network equipment provider’s stock valued at $5,802,382,000 after buying an additional 206,352 shares during the last quarter. Finally, Invesco Ltd. raised its holdings in Cisco Systems by 11.6% in the 4th quarter. Invesco Ltd. now owns 59,836,782 shares of the network equipment provider’s stock worth $4,609,227,000 after acquiring an additional 6,224,062 shares during the period. 73.33% of the stock is currently owned by institutional investors and hedge funds.

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.