Cisco Systems (NASDAQ:CSCO) Trading Down 4.5% on Analyst Downgrade
by Kim Johansen · The Markets DailyCisco Systems, Inc. (NASDAQ:CSCO – Get Free Report)’s share price traded down 4.5% during mid-day trading on Tuesday after Piper Sandler lowered their price target on the stock from $132.00 to $125.00. Piper Sandler currently has a neutral rating on the stock. Cisco Systems traded as low as $104.51 and last traded at $106.44. Approximately 32,301,329 shares changed hands during trading, an increase of 42% from the average daily volume of 22,758,711 shares. The stock had previously closed at $111.46.
CSCO has been the topic of several other research reports. KeyCorp increased their price target 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. Freedom Capital upgraded Cisco Systems from a “hold” rating to a “strong-buy” rating in a research report on Sunday, August 16th. Truist Financial increased their price target on Cisco Systems from $125.00 to $140.00 and gave the stock a “buy” rating in a report on Thursday, August 13th. UBS Group raised their price target on shares of Cisco Systems from $132.00 to $138.00 and gave the stock a “buy” rating in a report on Thursday, August 13th. Finally, HSBC downgraded Cisco Systems from a “buy” rating to a “hold” rating and decreased their price objective for the company from $137.00 to $120.00 in a report on Friday, August 14th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat, Cisco Systems has a consensus rating of “Moderate Buy” and a consensus price target of $129.36.
View Our Latest Stock Analysis on CSCO
Insider Activity at Cisco Systems
In related news, EVP Oliver Tuszik sold 2,760 shares of the business’s stock in a transaction on Friday, August 14th. The shares were sold at an average price of $112.46, for a total transaction of $310,389.60. Following the transaction, the executive vice president owned 165,276 shares in the company, valued at $18,586,938.96. The trade was a 1.64% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,628 shares of Cisco Systems stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $111.54, for a total value of $2,412,387.12. Following the transaction, the chief executive officer owned 602,710 shares of the company’s stock, valued at $67,226,273.40. This trade represents a 3.46% 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 44,869 shares of company stock worth $5,005,620 over the last quarter. 0.01% of the stock is currently owned by company insiders.
Trending Headlines about Cisco Systems
Here are the key news stories impacting Cisco Systems this week:
- Positive Sentiment: Cisco’s latest results remain a fundamental support: quarterly revenue increased 17.6% year over year to approximately $17.25 billion, while adjusted EPS of $1.22 exceeded consensus by $0.05. The company also expects continued growth in fiscal 2027. Old Dogs, New Tech: 3 Legacy Stocks Powering the AI Boom
- Positive Sentiment: Cisco’s Splunk integration and security offerings continue to support its enterprise-AI strategy by helping customers monitor and protect data moving through corporate networks. This provides a longer-term growth opportunity beyond traditional networking hardware. Cisco Moves Higher as Splunk Takes Agents Behind the Firewall
- Neutral Sentiment: Piper Sandler maintained a “neutral” rating but lowered its CSCO price target to $125 from $132. The revised target remains above the stock’s approximately $106 trading level, although the reduction signals less confidence in near-term appreciation. Cisco stock sinks after Piper Sandler cuts price target
- Negative Sentiment: Analysts cited concerns that growth across the networking industry may be reaching a peak. That outlook is weighing on Cisco despite its strong recent results and has prompted profit-taking after the stock’s earlier rally. Cisco Sinks While the Tech Sector Rises
- Negative Sentiment: Recent insider filings show executives selling shares, including transactions by Cisco’s CFO and global sales chief under prearranged Rule 10b5-1 plans. While these sales are not necessarily discretionary bearish bets, the absence of reported insider purchases may be reinforcing investor caution. Cisco Falls as Insider Selling and Profit-Taking Weigh on Shares
Hedge Funds Weigh In On Cisco Systems
A number of institutional investors have recently made changes to their positions in the stock. BlackRock Inc. purchased a new stake in Cisco Systems during the second quarter valued at about $42,129,647,000. State Street Corp boosted its position in shares of Cisco Systems by 7.0% in the 2nd 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 in the last quarter. Invesco Ltd. grew its position in Cisco Systems by 11.6% during the 4th quarter. Invesco Ltd. now owns 59,836,782 shares of the network equipment provider’s stock valued at $4,609,227,000 after purchasing an additional 6,224,062 shares during the last quarter. Norges Bank purchased a new position in shares of Cisco Systems in the fourth quarter worth $4,473,272,000. Finally, Auto Owners Insurance Co grew its position in Cisco Systems by 8,718.3% in the 4th quarter. Auto Owners Insurance Co now owns 51,952,421 shares of the network equipment provider’s stock worth $400,190,000 after purchasing an additional 51,363,281 shares during the period. Institutional investors own 73.33% of the company’s stock.
Cisco Systems Stock Performance
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 $419.65 billion, a PE ratio of 31.87, a PEG ratio of 2.28 and a beta of 1.00. The business has a 50-day moving average of $112.87 and a 200 day moving average of $104.79.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, beating the consensus estimate of $1.17 by $0.05. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The firm had revenue of $17.25 billion for the quarter, compared to the consensus estimate of $16.84 billion. During the same period last year, the firm earned $0.99 EPS. The company’s revenue was up 17.6% on a year-over-year basis. 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. Equities research analysts anticipate that Cisco Systems, Inc. will post 4.43 EPS for the current fiscal year.
Cisco Systems Announces Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 21st. Investors of record on Friday, October 2nd will be issued a $0.42 dividend. This represents a $1.68 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Friday, October 2nd. Cisco Systems’s payout ratio is presently 50.30%.
About Cisco Systems
Cisco Systems, Inc is a global technology company that provides networking, cybersecurity, collaboration, observability and other information technology solutions. Its offerings include routers, switches, wireless networking equipment, data center infrastructure, security platforms, unified communications tools and software designed to help organizations connect, manage and protect their digital environments.
Cisco serves businesses, government agencies, educational institutions, telecommunications providers and other organizations worldwide.