Cisco Systems (NASDAQ:CSCO) Stock Price Down 4.5% – Should You Sell?

Shares of Cisco Systems, Inc. (NASDAQ:CSCO) fell 4.5% during mid-day trading on Wednesday . The company traded as low as $110.22 and last traded at $111.77. Approximately 22,672,062 shares changed hands during mid-day trading, a decline of 5% from the average session volume of 23,959,504 shares. The stock had previously closed at $117.09.

Cisco Systems News Summary

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

• Positive Sentiment: Analysts and market commentary remain upbeat on Cisco’s growth outlook, citing rising AI-related orders, networking demand, cybersecurity momentum, and improved earnings visibility, with one recent note saying the stock still has room to rise after a 52% year-to-date gain. Article Title
• Positive Sentiment: Cisco is also benefiting from AI and security positioning, including a new Webex Contact Center partnership with SuccessKPI that expands its cloud contact-center offering and supports its broader AI software strategy. Article Title
• Positive Sentiment: Several recent reports frame Cisco as a beneficiary of the ongoing AI infrastructure buildout and stronger cybersecurity spending, reinforcing the view that demand trends remain favorable for the stock. Article Title
• Neutral Sentiment: Brokerage and commentary pieces continue to highlight Cisco’s valuation and AI optionality, but these are more long-term framing pieces than immediate stock catalysts. Article Title
• Negative Sentiment: Near-term trading pressure appears to be driven by profit-taking after a big run, with investors likely locking in gains following Cisco’s strong earnings report and AI-related optimism. Article Title
• Negative Sentiment: That same update noted tariff-related margin pressure, restructuring charges of up to $1 billion, and heavy insider selling over the past six months, which may be adding to investor caution. Article Title

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Morgan Stanley lifted their price objective on Cisco Systems from $120.00 to $130.00 and gave the stock an “overweight” rating in a research report on Friday, June 12th. Argus raised their target price on Cisco Systems from $100.00 to $150.00 and gave the stock a “buy” rating in a research note on Tuesday, May 19th. BNP Paribas Exane lifted their price target on Cisco Systems from $87.00 to $132.00 and gave the stock an “outperform” rating in a report on Thursday, May 14th. HSBC raised shares of Cisco Systems from a “hold” rating to a “buy” rating and boosted their price target for the company from $77.00 to $137.00 in a research report on Friday, May 15th. Finally, New Street Research upped their price objective on shares of Cisco Systems from $82.00 to $122.00 and gave the company a “neutral” rating in a report on Thursday, May 14th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $123.14.

Cisco Systems Stock Performance

The firm has a 50 day simple moving average of $116.33 and a 200-day simple moving average of $92.74. 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 company has a market cap of $440.53 billion, a price-to-earnings ratio of 36.29, a PEG ratio of 3.04 and a beta of 1.02.

Cisco Systems (NASDAQ:CSCO) last announced its quarterly earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 EPS for the quarter, beating the consensus estimate of $1.03 by $0.03. The business had revenue of $15.84 billion for the quarter, compared to analyst estimates of $15.56 billion. Cisco Systems had a return on equity of 28.44% and a net margin of 20.14%.The company’s quarterly revenue was up 12.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.96 EPS. 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, analysts predict that Cisco Systems, Inc. will post 3.54 EPS for the current fiscal year.

Cisco Systems Dividend Announcement

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

Insider Buying and Selling at Cisco Systems

In other news, EVP Thimaya K. Subaiya sold 7,127 shares of the business’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $119.91, for a total value of $854,598.57. Following the sale, the executive vice president directly owned 140,857 shares of the company’s stock, valued at approximately $16,890,162.87. The trade was a 4.82% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Deborah L. Stahlkopf sold 6,586 shares of the company’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $117.31, for a total transaction of $772,603.66. Following the completion of the transaction, the executive vice president owned 177,223 shares in the company, valued at approximately $20,790,030.13. This represents a 3.58% decrease in their ownership of the stock. 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. Over the last quarter, insiders sold 47,650 shares of company stock valued at $5,668,823. 0.01% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. MidAtlantic Capital Management Inc. acquired a new position in Cisco Systems in the 4th quarter valued at about $25,000. Intesa Sanpaolo Wealth Management purchased a new position in shares of Cisco Systems in the fourth quarter valued at approximately $25,000. Networth Advisors LLC boosted its stake in shares of Cisco Systems by 276.4% in the first quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider’s stock valued at $26,000 after purchasing an additional 246 shares during the period. Financial Life Planners acquired a new position in shares of Cisco Systems in the first quarter valued at approximately $27,000. Finally, Manning & Napier Advisors LLC grew 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 valued at $27,000 after purchasing an additional 200 shares in the last quarter. 73.33% of the stock is currently owned by hedge funds and other institutional investors.

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.