Cisco Systems (NASDAQ:CSCO) Trading Down 2.7% After Analyst Downgrade

Cisco Systems, Inc. (NASDAQ:CSCO)’s share price was down 2.7% during trading on Wednesday after Wall Street Zen downgraded the stock from a buy rating to a hold rating. The company traded as low as $112.35 and last traded at $112.4380. 22,656,924 shares traded hands during trading, a decline of 4% from the average daily volume of 23,698,076 shares. The stock had previously closed at $115.58.

Other analysts have also recently issued research reports about the stock. The Goldman Sachs Group raised their target price on shares of Cisco Systems from $116.00 to $125.00 and gave the company a “neutral” rating in a report on Wednesday, June 3rd. Piper Sandler increased their price objective on shares of Cisco Systems from $86.00 to $132.00 and gave the company a “neutral” rating in a research report on Thursday, May 14th. JPMorgan Chase & Co. raised their price objective on shares of Cisco Systems from $95.00 to $96.00 in a report on Monday, May 11th. Barclays lifted their price objective on shares of Cisco Systems from $76.00 to $121.00 and gave the stock an “equal weight” rating in a research report on Thursday, May 14th. Finally, Weiss Ratings upgraded shares of Cisco Systems from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, May 29th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $123.14.

Insider Activity

In other Cisco Systems news, EVP Deborah L. Stahlkopf sold 6,586 shares of the firm’s stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $117.31, for a total transaction of $772,603.66. Following the sale, the executive vice president owned 177,223 shares of the company’s stock, valued at approximately $20,790,030.13. This trade represents a 3.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 the business’s stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $120.03, for a total transaction of $2,568,642.00. Following the sale, the chief executive officer owned 637,085 shares of the company’s stock, valued at $76,469,312.55. This represents 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 47,650 shares of company stock valued at $5,668,823 over the last 90 days. Insiders own 0.01% of the company’s stock.

Institutional Investors Weigh In On Cisco Systems

A number of institutional investors and hedge funds have recently bought and sold shares of CSCO. Brighton Jones LLC grew its holdings in shares of Cisco Systems by 49.5% during the fourth quarter. Brighton Jones LLC now owns 74,187 shares of the network equipment provider’s stock worth $4,392,000 after purchasing an additional 24,562 shares during the last quarter. Revolve Wealth Partners LLC increased its position in shares of Cisco Systems by 37.0% during the fourth quarter. Revolve Wealth Partners LLC now owns 9,156 shares of the network equipment provider’s stock worth $542,000 after purchasing an additional 2,474 shares in the last quarter. Sivia Capital Partners LLC lifted its holdings in shares of Cisco Systems by 7.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 10,178 shares of the network equipment provider’s stock valued at $706,000 after purchasing an additional 712 shares during the last quarter. Schnieders Capital Management LLC. lifted its holdings in shares of Cisco Systems by 3.9% in the 2nd quarter. Schnieders Capital Management LLC. now owns 13,974 shares of the network equipment provider’s stock valued at $969,000 after purchasing an additional 519 shares during the last quarter. Finally, Marshall Wace LLP boosted its position in shares of Cisco Systems by 118.1% in the 2nd quarter. Marshall Wace LLP now owns 90,650 shares of the network equipment provider’s stock valued at $6,289,000 after purchasing an additional 590,650 shares during the period. 73.33% of the stock is owned by hedge funds and other institutional investors.

Cisco Systems Stock Down 2.7%

The business has a 50 day moving average of $117.88 and a 200-day moving average of $95.26. The stock has a market cap of $443.17 billion, a PE ratio of 36.51, a P/E/G ratio of 2.92 and a beta of 1.02. 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 released its quarterly earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 EPS for the quarter, topping the consensus estimate of $1.03 by $0.03. Cisco Systems had a return on equity of 28.44% and a net margin of 20.14%.The company had revenue of $15.84 billion for the quarter, compared to analyst estimates of $15.56 billion. During the same quarter in the previous year, the company posted $0.96 earnings per share. The firm’s revenue was up 12.0% compared to the same quarter last year. 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. Equities research analysts predict that Cisco Systems, Inc. will post 3.54 EPS for the current fiscal year.

Cisco Systems Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 22nd. Stockholders of record on Monday, July 6th were issued a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend was Monday, July 6th. Cisco Systems’s payout ratio is presently 54.55%.

Cisco Systems Company Profile

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.