Cisco Systems, Inc. (NASDAQ:CSCO – Get Free Report) shares were down 2.1% on Thursday. The stock traded as low as $114.69 and last traded at $114.89. 12,947,872 shares changed hands during mid-day trading, a decline of 42% from the average session volume of 22,498,871 shares. The stock had previously closed at $117.39.
Cisco Systems News Roundup
Here are the key news stories impacting Cisco Systems this week:
- Positive Sentiment: Cisco reported its fifth consecutive earnings beat, while demand for AI infrastructure and related orders continues to build. Investors are assessing whether this marks the beginning of a broader growth phase for the networking company. Cisco Could Be Entering a New Growth Phase
- Positive Sentiment: Cisco unveiled agentic AI features across Webex, workplace management and customer experience. The updates include Claude-powered Webex agents that can analyze data, create content and perform tasks using enterprise context, potentially supporting software and recurring-revenue growth. Cisco Unveils New Agentic Collaboration Experiences
- Positive Sentiment: A partnership with Google Meet for Cisco devices, a new customer-experience platform and the upcoming RoomOS 27 update broaden Cisco’s collaboration ecosystem and strengthen its positioning in enterprise AI-enabled communications. Cisco Unveils Agentic AI Tools
- Positive Sentiment: Supermicro servers entering Cisco’s AI factory channel could increase Cisco’s access to AI infrastructure deployments and create additional demand for its networking equipment. Cisco Stock and Supermicro AI Factory Channel
- Positive Sentiment: Cisco added a FIPS-validated post-quantum security application, reinforcing its cybersecurity portfolio and credibility with government and regulated-industry customers. Cisco Adds FIPS-Validated Security Application
- Neutral Sentiment: Analysts and investors remain divided over whether Cisco’s AI opportunity justifies its valuation. With the shares trading at a relatively demanding earnings multiple after a strong rally, further gains may require sustained order growth and execution.
- Negative Sentiment: The “wait” thesis argues that optimism around AI infrastructure may already be priced in, leaving limited near-term margin for error. Profit-taking or slower-than-expected conversion of AI orders could weigh on the stock even as the long-term outlook improves. The Case for Waiting on Cisco Stock
Wall Street Analyst Weigh In
CSCO has been the subject of a number of recent analyst reports. KeyCorp lifted 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. UBS Group raised their price objective on shares of Cisco Systems from $132.00 to $138.00 and gave the stock a “buy” rating in a research note on Thursday, August 13th. Piper Sandler dropped their target price on Cisco Systems from $132.00 to $125.00 and set a “neutral” rating for the company in a research report on Tuesday, September 22nd. Deutsche Bank Aktiengesellschaft initiated coverage on Cisco Systems in a research note on Tuesday, September 1st. They set a “buy” rating and a $135.00 target price on the stock. Finally, Sanford C. Bernstein assumed coverage on Cisco Systems in a report on Wednesday, September 30th. They issued a “market perform” rating and a $110.00 price target on the stock. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, Cisco Systems has an average rating of “Moderate Buy” and an average target price of $128.52.
Cisco Systems Trading Down 2.1%
The stock has a market capitalization of $452.96 billion, a P/E ratio of 34.40, a PEG ratio of 2.47 and a beta of 0.99. The stock’s fifty day moving average price is $112.11 and its 200 day moving average price is $107.43. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.93 and a quick ratio of 0.79.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share 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 analyst estimates of $16.84 billion. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The firm’s revenue for the quarter was up 17.6% on a year-over-year basis. During the same quarter last 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. Research analysts forecast that Cisco Systems, Inc. will post 4.41 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, October 21st. Stockholders of record on Friday, October 2nd will be paid 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 of this dividend is Friday, October 2nd. Cisco Systems’s payout ratio is currently 50.30%.
Insider Transactions at Cisco Systems
In related news, EVP Deborah Stahlkopf sold 6,487 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $111.53, for a total value of $723,495.11. Following the transaction, the executive vice president owned 167,116 shares of the company’s stock, valued at $18,638,447.48. This represents a 3.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya Subaiya sold 312 shares of the firm’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $110.18, for a total value of $34,376.16. Following the transaction, the executive vice president owned 127,661 shares in the company, valued at $14,065,688.98. The trade was a 0.24% decrease in their ownership of the stock. 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 have sold 44,869 shares of company stock valued at $5,005,620 in the last ninety days. Corporate insiders own 0.01% of the company’s stock.
Institutional Trading of Cisco Systems
Institutional investors and hedge funds have recently made changes to their positions in the company. Titleist Asset Management LLC grew its holdings in Cisco Systems by 10.7% during the 3rd quarter. Titleist Asset Management LLC now owns 5,205 shares of the network equipment provider’s stock worth $560,000 after acquiring an additional 503 shares in the last quarter. Apella Capital LLC increased its position in Cisco Systems by 11.8% during the 3rd quarter. Apella Capital LLC now owns 35,109 shares of the network equipment provider’s stock valued at $3,779,000 after purchasing an additional 3,695 shares during the period. Everhart Financial Group Inc. raised its holdings in shares of Cisco Systems by 4.0% in the 3rd quarter. Everhart Financial Group Inc. now owns 40,042 shares of the network equipment provider’s stock valued at $4,443,000 after purchasing an additional 1,524 shares in the last quarter. Avidian Wealth Enterprises LLC lifted its position in shares of Cisco Systems by 6.6% in the 3rd quarter. Avidian Wealth Enterprises LLC now owns 78,842 shares of the network equipment provider’s stock worth $8,983,000 after purchasing an additional 4,873 shares during the period. Finally, Veracity Capital LLC lifted its position in shares of Cisco Systems by 13.7% in the 3rd quarter. Veracity Capital LLC now owns 9,408 shares of the network equipment provider’s stock worth $1,013,000 after purchasing an additional 1,131 shares during the period. 73.33% of the stock is currently owned by institutional investors.
About Cisco Systems
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.
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