Cisco Systems (NASDAQ:CSCO) Stock Jumps 1% Following Analyst Upgrade

Shares of Cisco Systems, Inc. (NASDAQ:CSCO) were up 1% during mid-day trading on Thursday after Zacks Research upgraded the stock from a hold rating to a strong-buy rating. The company traded as high as $109.08 and last traded at $108.76. Approximately 12,611,487 shares changed hands during mid-day trading, a decline of 44% from the average session volume of 22,604,877 shares. The stock had previously closed at $107.63.

A number of other brokerages have also weighed in on CSCO. Piper Sandler decreased their target price on Cisco Systems from $132.00 to $125.00 and set a “neutral” rating on the stock in a research note on Tuesday, September 22nd. Deutsche Bank Aktiengesellschaft began coverage on Cisco Systems in a research report on Tuesday, September 1st. They set a “buy” rating and a $135.00 price target for the company. Morgan Stanley boosted their price objective on Cisco Systems from $130.00 to $135.00 and gave the stock an “overweight” rating in a report on Thursday, August 13th. KeyCorp upped their price objective on shares of Cisco Systems from $130.00 to $135.00 and gave the stock an “overweight” rating in a research report on Thursday, August 13th. Finally, HSBC downgraded shares of Cisco Systems from a “buy” rating to a “hold” rating and lowered their target price for the company from $137.00 to $120.00 in a research note on Friday, August 14th. Three investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Cisco Systems currently has an average rating of “Moderate Buy” and an average price target of $128.52.

Insider Transactions at Cisco Systems

In other news, EVP Thimaya Subaiya sold 5,832 shares of the stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $111.47, for a total transaction of $650,093.04. Following the transaction, the executive vice president directly owned 128,382 shares in the company, valued at approximately $14,310,741.54. This represents a 4.35% decrease in their position. The sale 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, EVP Deborah Stahlkopf sold 6,487 shares of the firm’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $111.53, for a total value of $723,495.11. Following the transaction, the executive vice president directly owned 167,116 shares in the company, valued at approximately $18,638,447.48. This represents a 3.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 44,869 shares of company stock worth $5,005,620. Company insiders own 0.01% of the company’s stock.

Key Stories Impacting Cisco Systems

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

• Positive Sentiment: Zacks Research upgraded Cisco Systems from “hold” to “strong buy,” providing a notable near-term sentiment boost. Investors Heavily Search Cisco Systems
• Positive Sentiment: Cisco is scheduled to distribute approximately $1.66 billion in dividends on October 21. The payout reinforces the company’s shareholder-return appeal and may support demand for the stock. Cisco Dividend Payouts
• Positive Sentiment: Cisco’s AI infrastructure momentum remains a key catalyst: product orders increased 35% year over year in fiscal fourth-quarter 2026, while AI infrastructure orders reportedly exceeded Wall Street expectations. The company also announced a sovereign AI infrastructure partnership with Bell Canada, potentially expanding its networking, security and observability products in regulated markets. Bell Cisco Sovereign AI Pact
• Positive Sentiment: The industrial-control-system security market is projected to grow at a 16.5% annual rate through 2031, creating a favorable backdrop for Cisco’s cybersecurity business. Industrial Control System Security Market Forecast
• Neutral Sentiment: Bernstein initiated coverage with a “market perform” rating, suggesting balanced expectations despite Cisco’s AI opportunity. Bernstein Cisco Coverage
• Negative Sentiment: Piper Sandler lowered its price target to $125, indicating reduced upside expectations. Management’s cautious fiscal 2027 AI revenue outlook and the fact that AI represented only about 6% of fiscal 2026 revenue also highlight execution and valuation risks. Piper Sandler Cisco Price Target

Institutional Investors Weigh In On Cisco Systems

Institutional investors have recently made changes to their positions in the business. BlackRock Inc. purchased a new stake in Cisco Systems in the 2nd quarter worth $42,129,647,000. State Street Corp increased its holdings in shares of Cisco Systems by 7.0% in the second quarter. State Street Corp now owns 207,106,569 shares of the network equipment provider’s stock worth $25,278,492,000 after purchasing an additional 13,512,872 shares during the last quarter. Invesco Ltd. boosted its stake in Cisco Systems by 11.6% during the fourth quarter. Invesco Ltd. now owns 59,836,782 shares of the network equipment provider’s stock valued at $4,609,227,000 after buying an additional 6,224,062 shares during the last quarter. Auto Owners Insurance Co grew its holdings in Cisco Systems by 8,718.3% during the 4th quarter. Auto Owners Insurance Co now owns 51,952,421 shares of the network equipment provider’s stock valued at $400,190,000 after buying an additional 51,363,281 shares in the last quarter. Finally, Franklin Resources Inc. raised its holdings in shares of Cisco Systems by 18.0% during the 4th quarter. Franklin Resources Inc. now owns 50,320,905 shares of the network equipment provider’s stock worth $3,876,219,000 after acquiring an additional 7,679,422 shares in the last quarter. Hedge funds and other institutional investors own 73.33% of the company’s stock.

Cisco Systems Stock Performance

The stock has a market capitalization of $442.36 billion, a PE ratio of 33.59, a price-to-earnings-growth ratio of 2.28 and a beta of 0.99. The business’s fifty day moving average is $112.00 and its two-hundred day moving average is $106.44. The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39.

Cisco Systems (NASDAQ:CSCO) last released its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 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 analyst estimates 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 last year, the business posted $0.99 earnings per share. 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. As a group, research analysts anticipate that Cisco Systems, Inc. will post 4.41 EPS for the current fiscal 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 issued a $0.42 dividend. The ex-dividend date is Friday, October 2nd. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.5%. Cisco Systems’s dividend payout ratio is presently 50.30%.

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.