Cisco Systems (NASDAQ:CSCO) Shares Down 1.8% – Here’s Why

Cisco Systems, Inc. (NASDAQ:CSCO)’s share price traded down 1.8% during trading on Tuesday . The company traded as low as $116.56 and last traded at $117.09. 20,711,138 shares changed hands during mid-day trading, a decline of 13% from the average session volume of 23,898,604 shares. The stock had previously closed at $119.25.

Cisco Systems News Roundup

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

• Positive Sentiment: Analysts and recent commentary continue to point to Cisco’s AI-driven order growth, networking demand, and security momentum as key reasons the stock has rallied this year. Article Title
• Positive Sentiment: A new Cisco partnership with SuccessKPI expands Webex Contact Center capabilities through AI-native workforce engagement tools, reinforcing the company’s AI and collaboration strategy. Article Title
• Neutral Sentiment: Cisco President Jeetu Patel’s comments that AI may create more jobs than it eliminates add to the company’s broader AI narrative, but the remarks are more thematic than immediately material to earnings. Article Title
• Neutral Sentiment: Technical analysts say CSCO is testing key support after slipping below its 50-day moving average, which could determine whether the longer-term uptrend remains intact. Article Title
• Negative Sentiment: Near-term weakness also appears tied to profit-taking after Cisco’s strong rally, with investors locking in gains while the stock trades below recent highs. Article Title

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on CSCO shares. Piper Sandler increased their price objective on Cisco Systems from $86.00 to $132.00 and gave the company a “neutral” rating in a research report on Thursday, May 14th. Citigroup boosted their target price on Cisco Systems from $90.00 to $112.00 and gave the stock a “buy” rating in a research report on Thursday, May 14th. Wall Street Zen downgraded shares of Cisco Systems from a “buy” rating to a “hold” rating in a report on Sunday. Wells Fargo & Company boosted their price objective on shares of Cisco Systems from $95.00 to $130.00 and gave the company an “overweight” rating in a report on Thursday, May 14th. Finally, Evercore increased their price objective on shares of Cisco Systems from $110.00 to $150.00 and gave the company an “outperform” rating in a research report on Thursday, May 14th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $123.14.

Cisco Systems Stock Down 3.0%

The company has a current ratio of 0.92, a quick ratio of 0.81 and a debt-to-equity ratio of 0.40. The stock has a market cap of $427.29 billion, a P/E ratio of 35.14, a PEG ratio of 2.98 and a beta of 1.02. The company’s 50 day moving average price is $116.74 and its two-hundred day moving average price is $92.98.

Cisco Systems (NASDAQ:CSCO) last announced its earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 EPS for the quarter, beating analysts’ consensus estimates of $1.03 by $0.03. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The business had revenue of $15.84 billion during the quarter, compared to analysts’ expectations of $15.56 billion. During the same period in the prior year, the company earned $0.96 earnings per share. The firm’s revenue was up 12.0% on a year-over-year basis. 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. Equities analysts forecast that Cisco Systems, Inc. will post 3.54 earnings per share for the current year.

Cisco Systems Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 22nd. Shareholders of record on Monday, July 6th will be issued a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend is Monday, July 6th. Cisco Systems’s payout ratio is currently 54.55%.

Insider Activity

In related news, EVP Oliver Tuszik sold 2,761 shares of Cisco Systems stock in a transaction on Friday, May 15th. The shares were sold at an average price of $114.61, for a total transaction of $316,438.21. Following the transaction, the executive vice president owned 180,877 shares in the company, valued at approximately $20,730,312.97. The trade was a 1.50% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,400 shares of the stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $120.03, for a total value of $2,568,642.00. Following the completion of the sale, the chief executive officer owned 637,085 shares of the company’s stock, valued at $76,469,312.55. The trade was a 3.25% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 47,650 shares of company stock worth $5,668,823. 0.01% of the stock is currently owned by corporate insiders.

Institutional Trading of Cisco Systems

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its holdings 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 worth $30,730,602,000 after buying an additional 4,049,893 shares in the last quarter. State Street Corp grew its stake in Cisco Systems by 0.5% during the fourth quarter. State Street Corp now owns 195,521,161 shares of the network equipment provider’s stock valued at $15,060,995,000 after acquiring an additional 1,057,962 shares in the last quarter. Morgan Stanley increased its holdings 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 acquiring an additional 206,352 shares during the last quarter. Invesco Ltd. lifted its stake 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 purchasing an additional 6,224,062 shares in the last quarter. Finally, Norges Bank purchased a new stake in Cisco Systems in the 4th quarter worth $4,473,272,000. Institutional investors own 73.33% of the company’s stock.

Cisco Systems Company Profile

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.