Cisco Systems (NASDAQ:CSCO) Trading Down 3.7% – Here’s Why

Cisco Systems, Inc. (NASDAQ:CSCO) shares were down 3.7% on Thursday . The stock traded as low as $111.90 and last traded at $112.69. 24,106,806 shares changed hands during trading, a decline of 0% from the average daily volume of 24,152,203 shares. The stock had previously closed at $117.01.

Cisco Systems News Summary

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

• Positive Sentiment: Zacks Research upgraded Cisco to Strong Buy, signaling rising optimism about the company’s earnings prospects and potentially supporting the stock. Cisco (CSCO) Upgraded to Strong Buy: Here’s What You Should Know
• Positive Sentiment: Recent commentary says Cisco’s forecast is beating bearish retail sentiment, with the company highlighted as a compelling AI infrastructure play after posting record quarterly revenue, raising full-year guidance, and projecting $9 billion in AI infrastructure orders from hyperscalers in FY26. Cisco’s Forecast Beats the Bearish Retail Crowd. Here’s the Target
• Positive Sentiment: Cisco was also named among Zacks’ top blue-chip picks for the second half of 2026, which may reinforce investor confidence in the stock’s momentum. Dow Records Best 1H Performance Since 2021: 5 Top Picks for 2H 2026
• Neutral Sentiment: Cisco partnered with the College Board to launch AP Cybersecurity and expand career-connected learning, a strategic branding and talent-development initiative that is unlikely to move shares immediately but supports the company’s long-term ecosystem. Cisco Partners With College Board To Launch AP Cybersecurity and Expand Career-Connected Learning
• Neutral Sentiment: A Zacks Analyst Blog also highlighted Cisco alongside other tech names, but the mention appears to be more of a general sector/idea feature than a new company-specific catalyst. The Zacks Analyst Blog Highlights AMD, Lam Research, Cisco Systems, Perma-Pipe international and AstroNova

Analyst Ratings Changes

CSCO has been the subject of a number of research reports. New Street Research lifted their target price on Cisco Systems from $82.00 to $122.00 and gave the company a “neutral” rating in a research note on Thursday, May 14th. Argus boosted their price objective on Cisco Systems from $100.00 to $150.00 and gave the company a “buy” rating in a research report on Tuesday, May 19th. Weiss Ratings upgraded Cisco Systems from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, May 29th. Evercore increased their target price on Cisco Systems from $110.00 to $150.00 and gave the stock an “outperform” rating in a research report on Thursday, May 14th. Finally, HSBC upgraded Cisco Systems from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $77.00 to $137.00 in a research report on Friday, May 15th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $123.14.

Cisco Systems Price Performance

The business’s 50-day simple moving average is $111.67 and its 200 day simple moving average is $90.33. The company has a market capitalization of $444.16 billion, a P/E ratio of 36.59, a P/E/G ratio of 2.99 and a beta of 1.02. The company has a current ratio of 0.92, a quick ratio of 0.81 and a debt-to-equity ratio of 0.40.

Cisco Systems (NASDAQ:CSCO) last posted its quarterly earnings data on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.03 by $0.03. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The business had revenue of $15.84 billion during the quarter, compared to analysts’ expectations of $15.56 billion. During the same period last year, the firm posted $0.96 earnings per share. The business’s revenue was up 12.0% on a year-over-year basis. 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. As a group, sell-side analysts anticipate that Cisco Systems, Inc. will post 3.54 EPS for the current year.

Cisco Systems Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 22nd. Investors of record on Monday, July 6th will be issued a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Monday, July 6th. Cisco Systems’s payout ratio is presently 54.55%.

Insider Transactions at Cisco Systems

In other Cisco Systems news, insider Jeetendra I. Patel sold 7,169 shares of the business’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $117.28, for a total value of $840,780.32. Following the sale, the insider directly owned 246,737 shares in the company, valued at approximately $28,937,315.36. The trade was a 2.82% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,607 shares of the firm’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $121.12, for a total transaction of $315,759.84. Following the transaction, the executive vice president owned 172,727 shares of the company’s stock, valued at approximately $20,920,694.24. This trade represents a 1.49% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 47,650 shares of company stock valued at $5,668,823 in the last quarter. 0.01% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Intesa Sanpaolo Wealth Management acquired a new position in shares of Cisco Systems in the 4th quarter worth $25,000. MidAtlantic Capital Management Inc. purchased a new position in Cisco Systems in the 4th quarter worth about $25,000. Networth Advisors LLC lifted its stake in Cisco Systems by 276.4% during the first quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider’s stock valued at $26,000 after buying an additional 246 shares in the last quarter. Manning & Napier Advisors LLC boosted its holdings in shares of Cisco Systems by 137.0% in the first quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider’s stock worth $27,000 after buying an additional 200 shares during the period. Finally, Financial Life Planners acquired a new stake in shares of Cisco Systems during the first quarter valued at approximately $27,000. Institutional investors 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.