Cisco Systems (NASDAQ:CSCO) Trading Down 2.1% – Here’s Why
by Danessa Lincoln · The Markets DailyCisco Systems, Inc. (NASDAQ:CSCO – Get Free Report)’s stock price dropped 2.1% during trading on Wednesday . The company traded as low as $77.53 and last traded at $77.60. Approximately 18,792,481 shares traded hands during mid-day trading, a decline of 19% from the average daily volume of 23,152,830 shares. The stock had previously closed at $79.27.
Key Cisco Systems News
Here are the key news stories impacting Cisco Systems this week:
- Positive Sentiment: Cisco launched a 10‑year “40 Communities” program to improve emergency connectivity, disaster response networks and local digital/cyber skills — a long‑term CSR/market‑development initiative that can lead to public‑sector contracts and steady demand for networking/security products. Cisco Community Push Puts 40 Communities Initiative In Investor Focus
- Positive Sentiment: Macro/sector commentary (Goldman) highlights AI, cybersecurity and infrastructure as winners — a thematic tailwind for Cisco’s routing, switching and security franchises as enterprise and cloud customers spend on AI‑ready networks. The AI Payoff Is the ‘Biggest Question’ for U.S. Investors, Says Goldman’s Snider
- Positive Sentiment: Technical commentary suggests Cisco could clear overhead resistance — if price momentum follows, that can draw momentum buyers and short‑covering. Blue‑Chip Tech Stock Could Topple Overhead Resistance
- Neutral Sentiment: Short‑interest data for March appear anomalous/zero — no meaningful short position to drive a short squeeze or large covering flows in the near term.
- Neutral Sentiment: Supplier/supply‑chain coverage (Jabil) and sector pieces underline stronger demand in AI/infrastructure, which indirectly supports Cisco but doesn’t alter Cisco’s near‑term fundamentals on its own. Jabil Quietly Manufactures an Accelerating Stock Price Rally
- Neutral Sentiment: Note that Cisco’s recent price weakness has partly tracked the Nasdaq, indicating some index/market pressure rather than company‑specific deterioration. Price Decline Meets Nasdaq Composite Trends
- Negative Sentiment: Insider selling: two executive VPs disclosed recent sales (Oliver Tuszik — 3,132 shares; Deborah L. Stahlkopf — 7,981 shares). Sales are modest relative to holdings but clustered insider sales can weigh on near‑term sentiment. SEC filing — Tuszik sale SEC filing — Stahlkopf sale
- Negative Sentiment: Valuation concern: some analysis flags Cisco as expensive on price‑to‑sales, which could cap upside for value‑focused investors despite growth in AI/networking demand. Cisco is Overvalued at 4.95X PS
Wall Street Analysts Forecast Growth
CSCO has been the topic of a number of recent research reports. DZ Bank raised Cisco Systems to a “strong-buy” rating in a research note on Friday, February 13th. Argus upgraded Cisco Systems to a “strong-buy” rating in a report on Friday, February 13th. Citigroup raised their price target on Cisco Systems from $85.00 to $90.00 and gave the stock a “buy” rating in a research report on Thursday, February 12th. Erste Group Bank cut Cisco Systems from a “buy” rating to a “hold” rating in a research note on Wednesday, February 18th. Finally, Morgan Stanley boosted their price objective on Cisco Systems from $82.00 to $91.00 and gave the company an “overweight” rating in a research report on Wednesday, December 17th. Three analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $89.55.
Get Our Latest Stock Report on Cisco Systems
Cisco Systems Stock Performance
The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.85 and a current ratio of 0.96. The company’s 50-day moving average price is $78.31 and its 200 day moving average price is $74.72. The stock has a market capitalization of $306.71 billion, a PE ratio of 27.25, a PEG ratio of 2.93 and a beta of 0.87.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last posted its quarterly earnings data on Wednesday, February 11th. The network equipment provider reported $1.04 earnings per share for the quarter, beating the consensus estimate of $1.02 by $0.02. Cisco Systems had a return on equity of 27.88% and a net margin of 19.22%.The business had revenue of $15.35 billion for the quarter, compared to analysts’ expectations of $15.11 billion. During the same period in the previous year, the firm posted $0.94 EPS. The business’s revenue was up 9.7% on a year-over-year basis. On average, equities research analysts expect that Cisco Systems, Inc. will post 3.04 earnings per share for the current fiscal year.
Cisco Systems Increases Dividend
The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 22nd. Investors of record on Thursday, April 2nd will be paid a $0.42 dividend. The ex-dividend date of this dividend is Thursday, April 2nd. This is a positive change from Cisco Systems’s previous quarterly dividend of $0.41. This represents a $1.68 annualized dividend and a yield of 2.2%. Cisco Systems’s payout ratio is currently 57.54%.
Insider Buying and Selling at Cisco Systems
In other Cisco Systems news, SVP Maria Victoria Wong sold 2,179 shares of the firm’s stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $77.74, for a total transaction of $169,395.46. Following the completion of the transaction, the senior vice president owned 28,807 shares of the company’s stock, valued at approximately $2,239,456.18. This trade represents a 7.03% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Jeetendra I. Patel sold 11,248 shares of the business’s stock in a transaction on Friday, February 13th. The shares were sold at an average price of $76.00, for a total transaction of $854,848.00. Following the sale, the insider owned 262,776 shares in the company, valued at approximately $19,970,976. This trade represents a 4.10% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 46,431 shares of company stock valued at $3,574,820. Company insiders own 0.01% of the company’s stock.
Hedge Funds Weigh In On Cisco Systems
A number of institutional investors and hedge funds have recently made changes to their positions in the business. Intesa Sanpaolo Wealth Management bought a new position in shares of Cisco Systems during the fourth quarter valued at $25,000. MidAtlantic Capital Management Inc. purchased a new stake in Cisco Systems during the 4th quarter valued at about $25,000. Bare Financial Services Inc increased its stake in Cisco Systems by 531.0% during the 2nd quarter. Bare Financial Services Inc now owns 366 shares of the network equipment provider’s stock valued at $25,000 after purchasing an additional 308 shares in the last quarter. Marquette Asset Management LLC bought a new stake in Cisco Systems during the 3rd quarter valued at about $25,000. Finally, Jessup Wealth Management Inc purchased a new position in Cisco Systems in the fourth quarter worth about $29,000. Institutional investors 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.