Cisco Systems (NASDAQ:CSCO) Shares Down 1.7% – Here’s Why

Shares of Cisco Systems, Inc. (NASDAQ:CSCO) fell 1.7% on Tuesday . The stock traded as low as $117.10 and last traded at $118.33. 26,340,412 shares traded hands during trading, an increase of 12% from the average session volume of 23,461,504 shares. The stock had previously closed at $120.41.

Key Stories Impacting Cisco Systems

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

• Positive Sentiment: Bank of America raised Cisco’s price target to $135 from $114 and kept a Buy rating, saying demand for high-speed optical networking gear is being boosted by AI infrastructure spending. BofA raises Cisco, Ciena targets as AI optics boom accelerates
• Positive Sentiment: Rosenblatt also boosted its target on Cisco to $150 from $100 and reiterated a Buy rating after the company’s latest quarterly results, signaling confidence in Cisco’s earnings momentum and execution. Rosenblatt Raises its Price Target on Cisco Systems (CSCO)
• Positive Sentiment: One article highlighted Cisco as the clear winner in the AI networking trade, noting that the stock has sharply outperformed peers like Arista and Broadcom over the past month. Cisco Soars 32% in a Month, Arista Falls 10%, Broadcom Drifts: The AI Networking Trade Has a Clear Winner
• Neutral Sentiment: Investor commentary comparing Nvidia’s growth pattern to Cisco’s 1990s run is drawing attention to Cisco’s history, but it does not directly change near-term fundamentals. Nvidia Sales Growth Looks Like Cisco. That’s Not Necessarily a Bad Thing.

Analysts Set New Price Targets

Several brokerages have commented on CSCO. JPMorgan Chase & Co. raised their target price on Cisco Systems from $95.00 to $96.00 in a research note on Monday, May 11th. KeyCorp raised their target price on Cisco Systems from $87.00 to $125.00 and gave the stock an “overweight” rating in a research note on Thursday, May 14th. Barclays raised their target price on Cisco Systems from $76.00 to $121.00 and gave the stock an “equal weight” rating in a research note on Thursday, May 14th. Argus raised their target price on Cisco Systems from $100.00 to $150.00 and gave the stock a “buy” rating in a research note on Tuesday, May 19th. Finally, CICC Research raised their target price on Cisco Systems from $96.00 to $125.00 and gave the stock an “outperform” rating in a research note on Monday, May 18th. Two analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $119.09.

Cisco Systems Trading Down 1.7%

The stock has a market cap of $466.39 billion, a P/E ratio of 38.42, a P/E/G ratio of 3.66 and a beta of 0.92. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.81 and a current ratio of 0.92. The stock has a 50-day moving average price of $90.19 and a 200-day moving average price of $81.91.

Cisco Systems (NASDAQ:CSCO) last issued its quarterly earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.03 by $0.03. The firm had revenue of $15.84 billion during 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 revenue for the quarter was up 12.0% on a year-over-year basis. During the same quarter last year, the company posted $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. On average, equities research analysts expect that Cisco Systems, Inc. will post 3.44 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. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Monday, July 6th. Cisco Systems’s dividend payout ratio (DPR) is 54.55%.

Insider Activity

In other news, SVP Maria Victoria Wong sold 551 shares of Cisco Systems stock in a transaction dated Wednesday, March 11th. The stock was sold at an average price of $77.54, for a total transaction of $42,724.54. Following the completion of the sale, the senior vice president owned 27,957 shares in the company, valued at approximately $2,167,785.78. This trade represents a 1.93% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Thimaya K. Subaiya sold 1,744 shares of Cisco Systems stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $77.07, for a total value of $134,410.08. Following the sale, the executive vice president owned 156,693 shares of the company’s stock, valued at approximately $12,076,329.51. This trade represents a 1.10% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 29,924 shares of company stock worth $2,991,192. Company insiders own 0.01% of the company’s stock.

Hedge Funds Weigh In On Cisco Systems

Large investors have recently modified their holdings of the company. Intesa Sanpaolo Wealth Management purchased a new position in shares of Cisco Systems during the 4th quarter valued at about $25,000. MidAtlantic Capital Management Inc. purchased a new position in shares of Cisco Systems during the 4th quarter valued at about $25,000. Networth Advisors LLC raised its holdings in shares of Cisco Systems by 276.4% during the 1st quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider’s stock valued at $26,000 after buying an additional 246 shares in the last quarter. Manning & Napier Advisors LLC raised its holdings in shares of Cisco Systems by 137.0% during the 1st quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider’s stock valued at $27,000 after buying an additional 200 shares in the last quarter. Finally, Financial Life Planners purchased a new position in shares of Cisco Systems during the 1st quarter valued at about $27,000. 73.33% of the stock is owned by hedge funds and other institutional investors.

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.