Cisco Systems (NASDAQ:CSCO) Trading Down 4.4% – Should You Sell?

Shares of Cisco Systems, Inc. (NASDAQ:CSCO) dropped 4.4% during mid-day trading on Friday . The company traded as low as $112.86 and last traded at $113.77. 50,102,184 shares changed hands during mid-day trading, an increase of 109% from the average session volume of 24,016,744 shares. The stock had previously closed at $118.97.

Key Stories Impacting Cisco Systems

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

• Positive Sentiment: KeyCorp raised its price target on Cisco to $130 and reiterated an Overweight rating, suggesting upside from current levels. Cisco Systems price target raised by KeyCorp
• Positive Sentiment: Cisco received a consensus rating of “Moderate Buy” from brokerages, reinforcing a generally favorable long-term analyst view. Cisco Systems receives consensus rating of Moderate Buy from brokerages
• Positive Sentiment: A valuation update lifted Cisco’s fair value estimate modestly, with analysts pointing to stronger AI networking execution, campus refresh demand, and optical growth tied to Acacia. Cisco stock sees modest fair value lift after AI networking target raises
• Neutral Sentiment: Cisco joined a Linux Foundation-led initiative, Akrites, aimed at strengthening critical open-source software against AI-enabled cyber threats, which may support its cybersecurity positioning but is not an immediate earnings driver. Linux Foundation and industry leaders launch Akrites
• Neutral Sentiment: Recent earnings coverage highlighted Cisco’s latest quarterly results and broader IT-services tech trends, but did not add a major new catalyst by itself. Q1 earnings roundup: Cisco and the rest of the IT services & other tech segment
• Negative Sentiment: Cisco disclosed plans to lay off more than 400 workers in California, which can signal cost-cutting or restructuring pressure and may weigh on sentiment. Cisco to lay off more than 400 workers in California
• Negative Sentiment: Broader tech weakness, including an AI and memory-stock selloff tied to an OpenAI IPO delay report, may also be dragging on Cisco shares. Nvidia, Micron, AMD lead chip selloff on OpenAI IPO delay report rattles tech

Analysts Set New Price Targets

CSCO has been the topic of a number of recent research reports. Bank of America boosted their price objective on Cisco Systems from $135.00 to $150.00 and gave the stock a “buy” rating in a research note on Monday, June 8th. New Street Research raised their target price on Cisco Systems from $82.00 to $122.00 and gave the stock a “neutral” rating in a research note on Thursday, May 14th. JPMorgan Chase & Co. lifted their price target on Cisco Systems from $95.00 to $96.00 in a report on Monday, May 11th. Citic Securities boosted their price target on shares of Cisco Systems from $90.00 to $130.00 in a research report on Friday, May 15th. Finally, BNP Paribas Exane upped their price objective on shares of Cisco Systems from $87.00 to $132.00 and gave the company an “outperform” rating in a report on Thursday, May 14th. Two equities research 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 company. According to MarketBeat, Cisco Systems currently has an average rating of “Moderate Buy” and an average target price of $123.14.

Cisco Systems Stock Performance

The company has a current ratio of 0.92, a quick ratio of 0.81 and a debt-to-equity ratio of 0.40. The stock has a market capitalization of $448.42 billion, a price-to-earnings ratio of 36.94, a price-to-earnings-growth ratio of 2.90 and a beta of 1.01. The firm’s fifty day moving average price is $109.79 and its 200 day moving average price is $89.46.

Cisco Systems (NASDAQ:CSCO) last posted 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 last year, the firm earned $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. Analysts forecast that Cisco Systems, Inc. will post 3.54 EPS for the current fiscal year.

Cisco Systems Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 22nd. Investors of record on Monday, July 6th will be issued a $0.42 dividend. This represents a $1.68 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Monday, July 6th. Cisco Systems’s payout ratio is currently 54.55%.

Insider Activity

In related news, EVP Thimaya K. Subaiya sold 7,127 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $119.91, for a total transaction of $854,598.57. Following the completion of the transaction, the executive vice president directly owned 140,857 shares in the company, valued at $16,890,162.87. This trade represents a 4.82% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,400 shares of Cisco Systems stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $120.03, for a total value 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 approximately $76,469,312.55. This represents a 3.25% 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 47,650 shares of company stock worth $5,668,823 in the last quarter. Insiders own 0.01% of the company’s stock.

Institutional Investors Weigh In On Cisco Systems

A number of hedge funds have recently added to or reduced their stakes in CSCO. Intesa Sanpaolo Wealth Management purchased a new position in Cisco Systems in the fourth quarter valued at $25,000. MidAtlantic Capital Management Inc. purchased a new stake in Cisco Systems during the 4th quarter worth about $25,000. Networth Advisors LLC increased its holdings in 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. Manning & Napier Advisors LLC raised its position in Cisco Systems by 137.0% in the 1st quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider’s stock valued at $27,000 after purchasing an additional 200 shares in the last quarter. Finally, Financial Life Planners purchased a new position in shares of Cisco Systems in the 1st quarter valued at about $27,000. 73.33% of the stock is currently owned by institutional investors and hedge funds.

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.