Cisco Systems (NASDAQ:CSCO) Shares Up 1.9% – Here’s Why

Cisco Systems, Inc. (NASDAQ:CSCO)’s stock price traded up 1.9% during trading on Thursday . The stock traded as high as $120.32 and last traded at $119.54. Approximately 51,444,399 shares changed hands during trading, an increase of 116% from the average daily volume of 23,804,207 shares. The stock had previously closed at $117.33.

Cisco Systems News Roundup

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

• Positive Sentiment: Cisco was highlighted as a top AI-screen name after strong earnings and AI infrastructure demand, which supports the bull case for continued revenue growth.
• Positive Sentiment: Equinix expanded partnerships with Cisco and NVIDIA to accelerate enterprise AI adoption, signaling deeper demand for Cisco’s networking ecosystem in AI data centers.
• Positive Sentiment: Analysts and market commentary continue to point to Cisco as a blue-chip beneficiary of the broader risk-on and AI-driven market backdrop.
• Positive Sentiment: Rhino Networks’ comments on Cisco’s unified networking strategy for SMBs underscore the company’s push to combine traditional networking with cloud-managed Meraki offerings, which could broaden its addressable market.
• Neutral Sentiment: A separate article questioned whether Cisco’s post-rally valuation is still reasonable, suggesting investors are increasingly weighing upside against a stretched share price after a strong run.
• Neutral Sentiment: Comparative pieces on Cisco versus other tech names kept the stock in focus but did not introduce a direct new catalyst.
• Negative Sentiment: EVP Thimaya K. Subaiya sold 7,127 shares under a pre-arranged trading plan, which can modestly pressure sentiment even though the transaction appears routine.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on CSCO shares. Truist Financial initiated coverage on shares of Cisco Systems in a report on Tuesday, March 31st. They issued a “buy” rating and a $94.00 target price on the stock. The Goldman Sachs Group upped their price target on Cisco Systems from $116.00 to $125.00 and gave the stock a “neutral” rating in a research report on Wednesday, June 3rd. Weiss Ratings upgraded Cisco Systems from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, May 29th. Bank of America raised their target price on shares of Cisco Systems from $135.00 to $150.00 and gave the company a “buy” rating in a research note on Monday, June 8th. Finally, Piper Sandler boosted their price target on Cisco Systems from $86.00 to $132.00 and gave the stock a “neutral” rating in a research report on Thursday, May 14th. Two investment 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’s stock. According to MarketBeat.com, Cisco Systems presently has an average rating of “Moderate Buy” and a consensus price target of $122.90.

Cisco Systems Stock Up 1.9%

The firm has a market cap of $471.16 billion, a price-to-earnings ratio of 38.81, a P/E/G ratio of 3.05 and a beta of 1.01. The company has a debt-to-equity ratio of 0.40, a current ratio of 0.92 and a quick ratio of 0.81. The stock has a 50-day moving average of $104.65 and a 200-day moving average of $87.48.

Cisco Systems (NASDAQ:CSCO) last posted its quarterly earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 EPS for the quarter, beating analysts’ consensus estimates of $1.03 by $0.03. Cisco Systems had a return on equity of 28.44% and a net margin of 20.14%.The business had revenue of $15.84 billion during the quarter, compared to the consensus estimate of $15.56 billion. During the same quarter in the previous year, the firm earned $0.96 earnings per share. Cisco Systems’s revenue for the quarter 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. Sell-side analysts predict that Cisco Systems, Inc. will post 3.54 EPS for the current fiscal year.

Cisco Systems Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 22nd. Stockholders of record on Monday, July 6th will be issued a dividend of $0.42 per share. The ex-dividend date of this dividend is Monday, July 6th. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.4%. Cisco Systems’s payout ratio is 54.55%.

Insider Activity

In related news, insider Jeetendra I. Patel sold 7,169 shares of the business’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $117.28, for a total transaction of $840,780.32. Following the sale, the insider owned 246,737 shares in the company, valued at $28,937,315.36. The trade was a 2.82% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,761 shares of the business’s stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $114.61, for a total value of $316,438.21. Following the sale, the executive vice president owned 180,877 shares in the company, valued at approximately $20,730,312.97. This trade represents a 1.50% 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 90 days, insiders have sold 47,650 shares of company stock valued at $5,668,823. Corporate insiders own 0.01% of the company’s stock.

Hedge Funds Weigh In On Cisco Systems

A number of hedge funds have recently modified their holdings of the business. Vanguard Group Inc. lifted its holdings in Cisco Systems by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 398,943,293 shares of the network equipment provider’s stock worth $30,730,602,000 after buying an additional 4,049,893 shares during the period. State Street Corp increased its stake in Cisco Systems by 0.5% in the fourth quarter. State Street Corp now owns 195,521,161 shares of the network equipment provider’s stock valued at $15,060,995,000 after purchasing an additional 1,057,962 shares in the last quarter. Morgan Stanley raised its stake in Cisco Systems by 0.3% during the 4th quarter. Morgan Stanley now owns 75,326,258 shares of the network equipment provider’s stock worth $5,802,382,000 after buying an additional 206,352 shares during the period. Invesco Ltd. lifted its holdings in shares of Cisco Systems by 11.6% in the 4th quarter. Invesco Ltd. now owns 59,836,782 shares of the network equipment provider’s stock worth $4,609,227,000 after purchasing an additional 6,224,062 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Cisco Systems in the fourth quarter valued at $4,473,272,000. Institutional investors and hedge funds own 73.33% of the company’s stock.

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.