Cisco Systems (NASDAQ:CSCO) Cut to “Hold” at Wall Street Zen

by · The Markets Daily

Wall Street Zen lowered shares of Cisco Systems (NASDAQ:CSCO – Free Report) from a buy rating to a hold rating in a report published on Saturday morning,Wall Street Zen reports.

Several other research firms have also commented on CSCO. Sanford C. Bernstein initiated coverage on shares of Cisco Systems in a research note on Wednesday, September 30th. They set a “market perform” rating and a $110.00 price objective for the company. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Cisco Systems in a research note on Tuesday, September 1st. They issued a “buy” rating and a $135.00 target price for the company. Morgan Stanley lowered shares of Cisco Systems from an “overweight” rating to an “equal weight” rating and cut their price target for the stock from $135.00 to $120.00 in a report on Thursday, November 5th. Barclays lifted their price target on shares of Cisco Systems from $121.00 to $123.00 and gave the stock an “equal weight” rating in a report on Thursday, August 13th. Finally, Wells Fargo & Company upped their price target on Cisco Systems from $130.00 to $150.00 and gave the stock an “overweight” rating in a research report on Thursday, August 13th. Three analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $127.87.

Read Our Latest Report on Cisco Systems

Cisco Systems Price Performance

Shares of CSCO stock opened at $98.65 on Friday. The stock’s 50-day moving average is $108.59 and its 200 day moving average is $101.75. Cisco Systems has a 1-year low of $71.10 and a 1-year high of $130.37. 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 cap of $388.94 billion, a P/E ratio of 28.23, a PEG ratio of 2.16 and a beta of 1.01.

Cisco Systems (NASDAQ:CSCO – Get Free Report) last announced its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, topping analysts’ consensus estimates of $1.17 by $0.05. The business had revenue of $17.25 billion during the quarter, compared to the consensus estimate of $16.84 billion. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The firm’s revenue was up 17.6% on a year-over-year basis. During the same period in the previous year, the company 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. Research analysts predict that Cisco Systems will post 4.42 earnings per share for the current fiscal year.

Cisco Systems Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd were paid a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a yield of 1.7%. The ex-dividend date was Friday, October 2nd. Cisco Systems’s payout ratio is presently 50.30%.

Insiders Place Their Bets

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 value of $650,093.04. Following the transaction, the executive vice president directly owned 128,382 shares of the company’s stock, valued at approximately $14,310,741.54. This represents a 4.35% decrease in their ownership of the stock. The sale was disclosed in a document filed 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, EVP Oliver Tuszik sold 2,760 shares of the firm’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $112.46, for a total value of $310,389.60. Following the completion of the transaction, the executive vice president owned 165,276 shares of the company’s stock, valued at approximately $18,586,938.96. The trade was a 1.64% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 44,869 shares of company stock valued at $5,005,620. Insiders own 0.01% of the company’s stock.

Hedge Funds Weigh In On Cisco Systems

A number of institutional investors have recently bought and sold shares of CSCO. Manning & Napier Advisors LLC raised its holdings in shares of 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 purchasing an additional 200 shares during the last quarter. Halbert Hargrove Global Advisors LLC boosted its holdings in Cisco Systems by 142.5% in the third 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 acquired a new stake in Cisco Systems during the 3rd quarter worth about $31,000. Blueline Advisors LLC acquired a new stake in Cisco Systems during the 3rd quarter worth about $32,000. Finally, RMG Wealth Management LLC grew its position in Cisco Systems by 308.7% during the 1st quarter. RMG Wealth Management LLC now owns 425 shares of the network equipment provider’s stock worth $33,000 after purchasing an additional 321 shares during the period. 73.33% of the stock is owned by hedge funds and other institutional investors.

Cisco Systems News Roundup

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

  • Positive Sentiment: Cisco is expanding its AI-security tools: AI Defense will use Anthropic’s Claude Mythos for adversarial testing of AI applications and agents, alongside new Splunk Agent Observability and Cisco IQ capabilities. The launch could strengthen Cisco’s position as businesses seek ways to secure and monitor AI agents. Cisco AI security announcement
  • Positive Sentiment: One analysis suggests Cisco shares could be undervalued by about 15%, offering a potential valuation argument for investors. Cisco valuation analysis
  • Neutral Sentiment: The November 12 earnings report is the main near-term catalyst. Investors will look for evidence that AI infrastructure demand supports Cisco’s growth and its stated $7.5 billion AI target; options trading points to expectations of a potentially large post-earnings move. Cisco earnings and options outlook
  • Negative Sentiment: Risk appetite remains a headwind: reports cite a roughly 20% decline in CSCO and a $145 billion loss in market value from its peak, while ETFs were net sellers of $64.1 million in shares on November 5. ETF flows for Cisco
  • Negative Sentiment: A Morgan Stanley analyst reportedly moved Cisco to Equal-weight, adding to caution ahead of results. Investors may also be wary if earnings fail to reassure the market about AI-related demand. Cisco earnings expectations and AI concerns

About Cisco Systems

(Get Free Report)

Cisco Systems, Inc develops networking, cybersecurity, collaboration and observability technologies for businesses, governments and other organizations. Its products include routers, switches, wireless systems and data center infrastructure, along with security software and services that help organizations connect and protect their networks.

The company also provides collaboration tools through its Webex platform and observability capabilities through its software offerings, including technology from Splunk, which Cisco acquired in 2024.

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