Cisco Systems (NASDAQ:CSCO) Shares Down 1.3% – Here’s Why

Cisco Systems, Inc. (NASDAQ:CSCO) was down 1.3% during trading on Wednesday . The stock traded as low as $118.36 and last traded at $118.80. Approximately 19,606,657 shares traded hands during trading, a decline of 17% from the average daily volume of 23,738,979 shares. The stock had previously closed at $120.36.

Trending Headlines about Cisco Systems

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

• Positive Sentiment: Industry data from Dell’Oro Group showed campus switch shipments rose double digits for the second straight quarter, with prices also climbing due to component shortages. That supports the case for stronger networking equipment demand, a favorable backdrop for Cisco’s core business. 1Q 2026 Campus Switch Shipments Grow Double Digits as Prices Rise Due to Component Shortages, According to Dell’Oro Group
• Positive Sentiment: Several market roundups highlighted CSCO as a stock with AI-driven upside potential and a solid name to own as the S&P 500 hit a record high, which may be helping keep longer-term investor sentiment constructive. 4 Solid Stocks to Buy as S&P 500 Hits Fresh All-Time Closing High
• Neutral Sentiment: Cisco was also mentioned in a note about a large increase in short interest, but the filing showed zero shares reported, so the data appears unreliable and does not clearly change the outlook.
• Neutral Sentiment: Coverage suggesting Cisco is overvalued or nearing a 52-week high points to a stretched valuation after a strong run, which can make investors more cautious and limit near-term upside. Cisco: Stock Price Overvalued But More Justified Than Dot-Com Era Cisco Stock Nearing 52-Week High: Buy, Sell or Hold?
• Negative Sentiment: Broader tech weakness also pressured sentiment, as the Nasdaq fell to a five-week low amid a sector pullback. That can weigh on Cisco even if company-specific fundamentals remain intact. Nasdaq Composite Falls to 5-Week Low Amid Tech Pullback

Analyst Ratings Changes

Several equities research analysts have commented on CSCO shares. HSBC upgraded shares of Cisco Systems from a “hold” rating to a “buy” rating and boosted their target price for the stock from $77.00 to $137.00 in a research report on Friday, May 15th. KeyCorp lifted their price target on Cisco Systems from $87.00 to $125.00 and gave the stock an “overweight” rating in a research note on Thursday, May 14th. Bank of America lifted their price target on Cisco Systems from $135.00 to $150.00 and gave the stock a “buy” rating in a research note on Monday. CICC Research lifted their price target on Cisco Systems from $96.00 to $125.00 and gave the stock an “outperform” rating in a research note on Monday, May 18th. Finally, Argus lifted their price target on Cisco Systems from $100.00 to $150.00 and gave the stock a “buy” rating in a research note on Tuesday, May 19th. Two analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, Cisco Systems has a consensus rating of “Moderate Buy” and a consensus price target of $120.18.

Cisco Systems Stock Down 1.3%

The firm’s 50 day moving average is $99.70 and its two-hundred day moving average is $85.63. The stock has a market cap of $468.24 billion, a price-to-earnings ratio of 38.57, a P/E/G ratio of 3.16 and a beta of 1.01. The company has a current ratio of 0.92, a quick ratio of 0.81 and a debt-to-equity ratio of 0.40.

Cisco Systems (NASDAQ:CSCO) last announced its earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share for the quarter, beating the consensus estimate of $1.03 by $0.03. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The firm had revenue of $15.84 billion during the quarter, compared to the consensus estimate of $15.56 billion. During the same quarter in the previous year, the company posted $0.96 EPS. The firm’s revenue for the quarter 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. On average, sell-side analysts predict that Cisco Systems, Inc. will post 3.54 EPS for the current year.

Cisco Systems Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 22nd. Investors of record on Monday, July 6th will be paid a $0.42 dividend. The ex-dividend date of this dividend is Monday, July 6th. This represents a $1.68 annualized dividend and a yield of 1.4%. Cisco Systems’s payout ratio is presently 54.55%.

Insider Transactions at Cisco Systems

In related news, insider Jeetendra I. Patel sold 7,169 shares of the business’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $117.28, for a total value of $840,780.32. Following the completion of the transaction, the insider owned 246,737 shares of the company’s stock, valued at approximately $28,937,315.36. The trade was a 2.82% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,400 shares of the business’s stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $120.03, for a total transaction of $2,568,642.00. Following the completion of the transaction, the chief executive officer directly 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. 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 a total of 50,773 shares of company stock worth $5,517,109 in the last ninety days. Company insiders own 0.01% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. MidAtlantic Capital Management Inc. acquired a new position in shares of Cisco Systems during the 4th quarter valued at about $25,000. Intesa Sanpaolo Wealth Management acquired a new position in shares of Cisco Systems during the 4th quarter valued at about $25,000. Networth Advisors LLC grew its holdings in shares of Cisco Systems by 276.4% during the 1st quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider’s stock worth $26,000 after purchasing an additional 246 shares during the period. Financial Life Planners purchased a new stake in shares of Cisco Systems during the 1st quarter worth about $27,000. Finally, Manning & Napier Advisors LLC grew its holdings in shares of Cisco Systems by 137.0% during the 1st quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider’s stock worth $27,000 after purchasing an additional 200 shares during the period. Institutional investors and hedge funds own 73.33% of the company’s stock.

About Cisco Systems

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.