Cisco Systems (NASDAQ:CSCO) Shares Down 2.6% – Here’s What Happened

Cisco Systems, Inc. (NASDAQ:CSCO)’s stock price dropped 2.6% during trading on Monday. The stock traded as low as $114.13 and last traded at $115.34. Approximately 14,456,278 shares were traded during trading, a decline of 35% from the average session volume of 22,401,277 shares. The stock had previously closed at $118.39.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on CSCO. Weiss Ratings reissued a “buy (b)” rating on shares of Cisco Systems in a research note on Wednesday, August 26th. Wells Fargo & Company raised their price objective on shares of Cisco Systems from $130.00 to $150.00 and gave the company an “overweight” rating in a research note on Thursday, August 13th. UBS Group lifted their target price on shares of Cisco Systems from $132.00 to $138.00 and gave the stock a “buy” rating in a report on Thursday, August 13th. Rosenblatt Securities upped their target price on shares of Cisco Systems from $150.00 to $165.00 and gave the company a “buy” rating in a research report on Thursday, August 13th. Finally, KeyCorp increased their price target on Cisco Systems from $130.00 to $135.00 and gave the company an “overweight” rating in a research note on Thursday, August 13th. Three equities 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 company. According to MarketBeat, Cisco Systems currently has an average rating of “Moderate Buy” and a consensus price target of $128.52.

Cisco Systems Stock Performance

The stock has a market cap of $448.04 billion, a P/E ratio of 34.02, a PEG ratio of 2.40 and a beta of 0.99. The stock has a fifty day simple moving average of $112.04 and a 200-day simple moving average of $108.45. The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39.

Cisco Systems (NASDAQ:CSCO) last announced its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, beating analysts’ consensus estimates of $1.17 by $0.05. The company had revenue of $17.25 billion during 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%. Cisco Systems’s revenue was up 17.6% on a year-over-year basis. During the same period in the prior year, the business 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. Equities analysts expect that Cisco Systems, Inc. will post 4.42 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

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

Insider Buying and Selling

In other news, CEO Charles Robbins sold 21,628 shares of Cisco Systems stock in a transaction on Friday, August 14th. The shares were sold at an average price of $111.54, for a total transaction of $2,412,387.12. Following the transaction, the chief executive officer directly owned 602,710 shares of the company’s stock, valued at $67,226,273.40. This trade represents a 3.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya Subaiya sold 312 shares of the business’s stock in a transaction on Monday, September 14th. The shares were sold at an average price of $110.18, for a total transaction of $34,376.16. Following the completion of the transaction, the executive vice president directly owned 127,661 shares of the company’s stock, valued at $14,065,688.98. This trade represents a 0.24% 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 quarter, insiders sold 44,869 shares of company stock valued at $5,005,620. 0.01% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Lodestone Wealth Management LLC increased its holdings in shares of Cisco Systems by 1.3% in the third quarter. Lodestone Wealth Management LLC now owns 35,603 shares of the network equipment provider’s stock worth $3,832,000 after acquiring an additional 443 shares in the last quarter. ABLE Financial Group LLC raised its position in shares of Cisco Systems by 15.4% during the third quarter. ABLE Financial Group LLC now owns 22,129 shares of the network equipment provider’s stock worth $2,382,000 after purchasing an additional 2,961 shares during the period. First Citizens Bank & Trust Co. lifted its holdings in shares of Cisco Systems by 8.1% during the 3rd quarter. First Citizens Bank & Trust Co. now owns 312,280 shares of the network equipment provider’s stock valued at $33,611,000 after purchasing an additional 23,485 shares in the last quarter. Focus Financial Network Inc. lifted its holdings in shares of Cisco Systems by 6.8% during the 3rd quarter. Focus Financial Network Inc. now owns 37,313 shares of the network equipment provider’s stock valued at $4,227,000 after purchasing an additional 2,363 shares in the last quarter. Finally, Roberts Wealth Advisors LLC grew its position in shares of Cisco Systems by 5.9% in the 3rd quarter. Roberts Wealth Advisors LLC now owns 61,714 shares of the network equipment provider’s stock valued at $6,642,000 after purchasing an additional 3,450 shares during the period. 73.33% of the stock is currently owned by institutional investors.

Cisco Systems Company Profile

Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration, observability and data center solutions. Its products and services help businesses, governments, educational institutions and other organizations connect users and devices, manage infrastructure, protect digital environments and support cloud-based operations.

Cisco’s portfolio includes routers and switches, wireless networking equipment, network management software, firewalls, identity and access tools, endpoint security products, collaboration applications and observability platforms.