Cisco Systems (NASDAQ:CSCO) Shares Down 1.5% – Here’s What Happened

Cisco Systems, Inc. (NASDAQ:CSCO) shares were down 1.5% during mid-day trading on Thursday. The company traded as low as $108.28 and last traded at $108.59. 13,385,314 shares were traded during mid-day trading, a decline of 39% from the average session volume of 21,935,967 shares. The stock had previously closed at $110.29.

Key Headlines Impacting Cisco Systems

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

• Positive Sentiment: Cisco’s AI networking opportunity remains the primary bullish catalyst. Rising hyperscaler demand, expanding products and continued investment in AI infrastructure could help CSCO compete more effectively with Arista Networks and Hewlett Packard Enterprise. Cisco Gains From AI Networking Boom: Can It Outpace HPE & ANET?
• Positive Sentiment: Analysts remain constructive ahead of Cisco’s earnings report, with the company having outperformed the broader market and expectations for continued business momentum. Its latest reported quarter also exceeded consensus revenue and EPS estimates, while revenue grew year over year. Earnings Preview: What to Expect From Cisco’s Report
• Positive Sentiment: The consensus analyst price target of $128.52 indicates potential upside from the recently cited trading level near $108.53, suggesting analysts see further value in CSCO despite its higher earnings multiple. Cisco Systems Stock Has Consensus Price Target of $128.52
• Positive Sentiment: Cisco’s push into AI security, quantum-safe protection and tools for detecting rogue AI agents strengthens its positioning as customers confront emerging cybersecurity risks. What Is Cisco Signaling With Its AI Security and Quantum Safe Push?
• Neutral Sentiment: Recognition of Logicalis US as Cisco’s Americas Managed Services Partner of the Year highlights partner-channel strength and service execution, but is unlikely by itself to materially change near-term earnings expectations. Logicalis US Named Managed Services Partner of the Year
• Negative Sentiment: Competition is intensifying as Dell expands AI security and cyber-resilience capabilities, while Arista and HPE also pursue AI infrastructure spending. This could pressure Cisco’s market share and margins if rivals capture more of the growth. Dell Expands AI Security Capabilities
• Negative Sentiment: ETFs were reported as net sellers of Cisco shares, creating a near-term technical headwind. In addition, CSCO’s elevated valuation leaves the stock more sensitive to any earnings miss or cautious outlook. ETFs Are Net Sellers of Cisco

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the stock. Sanford C. Bernstein began coverage on shares of Cisco Systems in a report on Wednesday, September 30th. They set a “market perform” rating and a $110.00 target price on the stock. Wells Fargo & Company increased their price target on shares of Cisco Systems from $130.00 to $150.00 and gave the stock an “overweight” rating in a research note on Thursday, August 13th. Rosenblatt Securities lifted their price target 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. Morgan Stanley upped their price target on shares of Cisco Systems from $130.00 to $135.00 and gave the stock an “overweight” rating in a research note on Thursday, August 13th. Finally, Deutsche Bank Aktiengesellschaft initiated coverage on shares of Cisco Systems in a research note on Tuesday, September 1st. They issued a “buy” rating and a $135.00 target price on the stock. Three research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $128.52.

Cisco Systems Stock Performance

The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39. The firm has a 50 day moving average price of $110.14 and a 200 day moving average price of $100.68. The stock has a market cap of $428.13 billion, a PE ratio of 32.51, a price-to-earnings-growth ratio of 2.22 and a beta of 0.99.

Cisco Systems (NASDAQ:CSCO) last announced its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.05. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%. The business had revenue of $17.25 billion for the quarter, compared to analysts’ expectations of $16.84 billion. During the same quarter last year, the firm earned $0.99 EPS. The business’s revenue for the quarter was up 17.6% on a year-over-year basis. 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. As a group, research analysts forecast that Cisco Systems, Inc. will post 4.42 earnings per share for the current year.

Cisco Systems Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd were issued a dividend of $0.42 per share. The ex-dividend date of this dividend was Friday, October 2nd. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.5%. Cisco Systems’s dividend payout ratio is presently 50.30%.

Insider Transactions at Cisco Systems

In related news, EVP Oliver Tuszik sold 2,760 shares of the business’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $112.46, for a total transaction of $310,389.60. Following the completion of the transaction, the executive vice president directly owned 165,276 shares of the company’s stock, valued at $18,586,938.96. The trade was a 1.64% decrease in their position. The transaction 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 Deborah Stahlkopf sold 6,487 shares of the company’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $111.53, for a total value of $723,495.11. Following the sale, the executive vice president owned 167,116 shares in the company, valued at approximately $18,638,447.48. This trade 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. Insiders sold 44,869 shares of company stock worth $5,005,620 in the last quarter. 0.01% of the stock is owned by insiders.

Institutional Investors Weigh In On Cisco Systems

A number of large investors have recently modified their holdings of the company. BlackRock Inc. acquired a new stake in Cisco Systems in the second quarter valued at $42,129,647,000. Bank of America Corp DE acquired a new position in shares of Cisco Systems during the 2nd quarter worth $5,892,379,000. Bank of New York Mellon Corp acquired a new position in shares of Cisco Systems during the 2nd quarter worth $4,714,574,000. Deutsche Bank AG purchased a new position in shares of Cisco Systems in the 2nd quarter valued at about $1,997,004,000. Finally, State Street Corp lifted its stake in shares of Cisco Systems by 7.0% in the second quarter. State Street Corp now owns 207,106,569 shares of the network equipment provider’s stock valued at $25,278,492,000 after purchasing an additional 13,512,872 shares during the period. 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 develops networking, cybersecurity, collaboration and observability solutions for businesses, government organizations and service providers. Its offerings include routers, switches, wireless networking equipment, data-center infrastructure, security software and services, as well as technologies that support cloud and hybrid IT environments.

The company also provides collaboration tools through its Webex portfolio, cloud-managed networking through Cisco Meraki and security and observability capabilities that include technologies from Splunk, which Cisco acquired in 2024.