Cisco Systems, Inc. (NASDAQ:CSCO – Get Free Report)’s share price crossed below its two hundred day moving average during trading on Thursday after Morgan Stanley downgraded the stock from an overweight rating to an equal weight rating. The stock has a two hundred day moving average of $101.53 and traded as low as $95.43. Morgan Stanley now has a $120.00 price target on the stock, down from their previous price target of $135.00. Cisco Systems shares last traded at $95.72, with a volume of 37,423,517 shares.
Several other equities analysts have also recently weighed in on CSCO. Barclays lifted their target price on Cisco Systems from $121.00 to $123.00 and gave the company an “equal weight” rating in a research note on Thursday, August 13th. Wells Fargo & Company upped their target price on Cisco Systems from $130.00 to $150.00 and gave the company an “overweight” rating in a report on Thursday, August 13th. Weiss Ratings reissued a “buy (b)” rating on shares of Cisco Systems in a research report on Wednesday, August 26th. Zacks Research upgraded shares of Cisco Systems from a “hold” rating to a “strong-buy” rating in a report on Wednesday, September 30th. Finally, Sanford C. Bernstein initiated coverage on shares of Cisco Systems in a research report on Wednesday, September 30th. They set a “market perform” rating and a $110.00 price objective on the stock. Three analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $127.87.
Check Out Our Latest Stock Analysis on CSCO
Insiders Place Their Bets
In related news, EVP Oliver Tuszik sold 2,760 shares of the 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 sale, the executive vice president directly owned 165,276 shares in the company, valued at approximately $18,586,938.96. This trade represents a 1.64% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 value of $2,412,387.12. Following the sale, the chief executive officer directly owned 602,710 shares of the company’s stock, valued at approximately $67,226,273.40. The trade was a 3.46% 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. Insiders sold a total of 44,869 shares of company stock valued at $5,005,620 in the last three months. Company insiders own 0.01% of the company’s stock.
Key Headlines Impacting Cisco Systems
Here are the key news stories impacting Cisco Systems this week:
- Positive Sentiment: Cisco was named a leader in ABI Research’s Open Line Systems ranking for data center interconnects, supporting its positioning in optical networking as AI drives demand for data center connections. Article: Ciena, Nokia, and Cisco Named Leaders in ABI Research’s Open Line Systems for Data Center Interconnect Scale-Across Ranking
- Positive Sentiment: Spectrum Business introduced a managed secure-networking service using Cisco routers and security software, creating a new channel to sell Cisco solutions to businesses building AI-focused infrastructure. Article: Cisco Systems Expands Into Managed Secure Networking For AI Enterprise Infrastructure
- Neutral Sentiment: Cisco reports Q3 results on November 12. Wall Street expects earnings growth, while options traders are pricing in a potentially sizable post-report move; the coverage also notes Cisco may lack indicators associated with a likely earnings beat. Article: Cisco Systems Set for Near 11% Move After Q3 Earnings Next Week Article: Cisco Systems Reports Next Week: Wall Street Expects Earnings Growth
- Negative Sentiment: Morgan Stanley cut its rating on Cisco from Overweight to Equal Weight and lowered its price target from $135 to $120. The firm sees risk that faster AI infrastructure revenue growth brings a less profitable product mix, squeezing gross margins and earnings growth, particularly in fiscal 2028. Article: Morgan Stanley Downgrades Cisco On AI Impacting Gross Margins
- Negative Sentiment: The downgrade coincided with a broader pullback in AI infrastructure stocks, adding sector-wide pressure to Cisco’s shares. Article: Cisco Falls on Morgan Stanley Downgrade; Networking Stocks Retreat
Institutional Investors Weigh In On Cisco Systems
Several institutional investors have recently made changes to their positions in CSCO. Halbert Hargrove Global Advisors LLC lifted its stake in shares of Cisco Systems by 142.5% in the 3rd quarter. Halbert Hargrove Global Advisors LLC now owns 257 shares of the network equipment provider’s stock valued at $28,000 after purchasing an additional 151 shares during the last quarter. Kings Path Partners LLC bought a new stake in Cisco Systems in the third quarter worth $31,000. Blueline Advisors LLC acquired a new position in Cisco Systems during the third quarter worth $32,000. GK Wealth Management LLC acquired a new position in Cisco Systems during the third quarter worth $37,000. Finally, Manning & Napier Advisors LLC increased its position in Cisco Systems by 137.0% during the first quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider’s stock worth $27,000 after buying an additional 200 shares during the last quarter. 73.33% of the stock is currently owned by institutional investors and hedge funds.
Cisco Systems Trading Down 7.6%
The company has a fifty day simple moving average of $109.18 and a two-hundred day simple moving average of $101.53. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.93 and a quick ratio of 0.79. The company has a market capitalization of $377.38 billion, a P/E ratio of 28.66, a price-to-earnings-growth ratio of 2.16 and a beta of 1.01.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last released its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.17 by $0.05. The company had revenue of $17.25 billion during the quarter, compared to the consensus estimate of $16.84 billion. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%. The firm’s revenue was up 17.6% on a year-over-year basis. During the same quarter in the prior year, the company 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. On average, analysts forecast that Cisco Systems, Inc. will post 4.42 earnings per share for the current fiscal year.
Cisco Systems Dividend Announcement
The business also recently announced a quarterly dividend, which was paid on Wednesday, October 21st. Investors of record on Friday, October 2nd were issued a $0.42 dividend. This represents a $1.68 annualized dividend and a yield of 1.8%. The ex-dividend date was Friday, October 2nd. Cisco Systems’s payout ratio is 50.30%.
Cisco Systems Company Profile
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.
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