Cisco Systems (NASDAQ:CSCO) Downgraded to “Hold” Rating by Zacks Research

Zacks Research downgraded shares of Cisco Systems (NASDAQ:CSCO) from a strong-buy rating to a hold rating in a research report released on Monday,Zacks.com reports.

A number of other research analysts also recently issued reports on CSCO. Truist Financial initiated coverage on Cisco Systems in a research note on Tuesday, March 31st. They set a “buy” rating and a $94.00 price objective for the company. DZ Bank raised Cisco Systems to a “strong-buy” rating in a report on Friday, February 13th. Citigroup boosted their price target on Cisco Systems from $85.00 to $90.00 and gave the stock a “buy” rating in a report on Thursday, February 12th. Erste Group Bank cut Cisco Systems from a “buy” rating to a “hold” rating in a report on Wednesday, February 18th. Finally, BNP Paribas Exane boosted their price target on Cisco Systems from $86.00 to $87.00 and gave the stock an “outperform” rating in a report on Thursday, February 12th. Three investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and eight have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $89.76.

Cisco Systems Trading Up 0.3%

Shares of NASDAQ:CSCO opened at $82.61 on Monday. The stock has a 50 day moving average of $79.76 and a 200 day moving average of $76.44. The company has a market cap of $326.30 billion, a PE ratio of 28.99, a price-to-earnings-growth ratio of 3.11 and a beta of 0.83. The company has a current ratio of 0.96, a quick ratio of 0.85 and a debt-to-equity ratio of 0.45. Cisco Systems has a 12-month low of $53.83 and a 12-month high of $88.18.

Cisco Systems (NASDAQ:CSCO) last announced its quarterly earnings data on Wednesday, February 11th. The network equipment provider reported $1.04 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.02 by $0.02. The company had revenue of $15.35 billion during the quarter, compared to the consensus estimate of $15.11 billion. Cisco Systems had a return on equity of 27.88% and a net margin of 19.22%.The firm’s revenue was up 9.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.94 EPS. As a group, equities research analysts expect that Cisco Systems will post 3.04 EPS for the current year.

Cisco Systems Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 22nd. Investors of record on Thursday, April 2nd will be issued a $0.42 dividend. The ex-dividend date of this dividend is Thursday, April 2nd. This represents a $1.68 dividend on an annualized basis and a yield of 2.0%. This is a boost from Cisco Systems’s previous quarterly dividend of $0.41. Cisco Systems’s payout ratio is presently 58.95%.

Insider Buying and Selling

In related news, SVP Maria Victoria Wong sold 2,179 shares of the business’s stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $77.74, for a total value of $169,395.46. Following the transaction, the senior vice president directly owned 28,807 shares of the company’s stock, valued at approximately $2,239,456.18. The trade was a 7.03% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Deborah L. Stahlkopf sold 7,981 shares of the company’s stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $79.50, for a total value of $634,489.50. Following the sale, the executive vice president directly owned 187,097 shares in the company, valued at $14,874,211.50. This trade represents a 4.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 46,431 shares of company stock worth $3,574,820 in the last quarter. 0.01% of the stock is owned by insiders.

Institutional Trading of Cisco Systems

Several hedge funds have recently modified their holdings of CSCO. Brighton Jones LLC raised its holdings in shares of Cisco Systems by 49.5% during the 4th quarter. Brighton Jones LLC now owns 74,187 shares of the network equipment provider’s stock worth $4,392,000 after acquiring an additional 24,562 shares in the last quarter. Revolve Wealth Partners LLC increased its position in shares of Cisco Systems by 37.0% during the 4th quarter. Revolve Wealth Partners LLC now owns 9,156 shares of the network equipment provider’s stock valued at $542,000 after purchasing an additional 2,474 shares during the last quarter. Sivia Capital Partners LLC increased its position in shares of Cisco Systems by 7.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 10,178 shares of the network equipment provider’s stock valued at $706,000 after purchasing an additional 712 shares during the last quarter. Schnieders Capital Management LLC. increased its position in shares of Cisco Systems by 3.9% during the 2nd quarter. Schnieders Capital Management LLC. now owns 13,974 shares of the network equipment provider’s stock valued at $969,000 after purchasing an additional 519 shares during the last quarter. Finally, Marshall Wace LLP increased its position in shares of Cisco Systems by 118.1% during the 2nd quarter. Marshall Wace LLP now owns 90,650 shares of the network equipment provider’s stock valued at $6,289,000 after purchasing an additional 590,650 shares during the last quarter. 73.33% of the stock is owned by hedge funds and other institutional investors.

Cisco Systems News Summary

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

• Positive Sentiment: Strong AI momentum and quarterly traction: recent coverage highlights Q2 revenue growth (~9.7% YoY), networking orders up ~20% and AI infrastructure orders of ~$2.1B, plus management raising full?year EPS guidance — supportive of continued top?line and order strength. Cisco Remains A Buy As AI Tailwinds Broaden
• Positive Sentiment: Potential tuck?in acquisition of Israeli AI/cybersecurity startup Astrix (reported $250M–$350M) would expand Cisco’s AI?agent security portfolio at a modest price and reinforce its security/AI positioning. M&A News: Cisco in Talks to Acquire Astrix
• Positive Sentiment: Relative-value/security market angle: recent comparisons to CrowdStrike emphasize Cisco’s expanding security stack and lower valuation — a constructive narrative for investors preferring cheaper exposure to cybersecurity. CRWD vs CSCO: Which Cybersecurity Stock Should You Buy Right Now?
• Neutral Sentiment: Valuation check after a strong run: coverage asks whether CSCO (~$82) is now fairly priced after ~47% 1?year gains; this frames investor debate between growth potential and stretched multiples. Is Cisco Fairly Priced?
• Neutral Sentiment: Increased retail/institutional attention noted in trending posts — more eyeballs can amplify moves but is not a directional catalyst by itself. Trending Stock Note
• Negative Sentiment: Deep-dive cash?flow critique: a sell analysis argues the $28B Splunk deal tripled Cisco’s debt and structurally compressed free cash flow, assigning a $69 fair value — a direct counterweight to bull narratives and a potential driver of selling pressure if FCF recovery stalls. AI Top-Line Boom Can’t Hide The Free Cash Flow Problem
• Negative Sentiment: Analyst sentiment cooled: Zacks downgraded Cisco from “strong?buy” to “hold,” which can blunt upside by reducing conviction among some retail and model?driven investors. Zacks Downgrade

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.