Cisco Systems (NASDAQ:CSCO) Rating Lowered to “Hold” at Zacks Research

Cisco Systems (NASDAQ:CSCO) was downgraded by investment analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a report released on Tuesday,Zacks.com reports.

Several other brokerages have also recently issued reports on CSCO. BNP Paribas Exane increased their price objective on Cisco Systems from $87.00 to $132.00 and gave the company an “outperform” rating in a research note on Thursday, May 14th. Morgan Stanley upped their price target on Cisco Systems from $120.00 to $130.00 and gave the stock an “overweight” rating in a report on Friday, June 12th. Bank of America increased their price target on Cisco Systems from $135.00 to $150.00 and gave the company a “buy” rating in a research report on Monday, June 8th. UBS Group lifted their price objective on Cisco Systems from $95.00 to $132.00 and gave the company a “buy” rating in a research note on Thursday, May 14th. Finally, New Street Research boosted their price objective on Cisco Systems from $82.00 to $122.00 and gave the stock a “neutral” rating in a research report on Thursday, May 14th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, Cisco Systems currently has a consensus rating of “Moderate Buy” and an average target price of $123.14.

Cisco Systems Stock Down 0.2%

Shares of NASDAQ:CSCO opened at $121.50 on Tuesday. The firm has a market capitalization of $478.88 billion, a PE ratio of 39.45, a price-to-earnings-growth ratio of 2.74 and a beta of 1.02. Cisco Systems has a 1 year low of $65.75 and a 1 year high of $130.37. 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 firm’s 50-day moving average is $117.68 and its two-hundred day moving average is $97.05.

Cisco Systems (NASDAQ:CSCO) last posted its quarterly earnings data 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 during the quarter, compared to analyst estimates of $15.56 billion. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The business’s revenue for the quarter was up 12.0% compared to the same quarter last year. During the same quarter last year, the firm posted $0.96 earnings per share. 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. Analysts predict that Cisco Systems will post 3.54 EPS for the current year.

Insider Buying and Selling at Cisco Systems

In other news, insider Jeetendra I. Patel sold 7,169 shares of the business’s stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $117.28, for a total value of $840,780.32. Following the completion of the sale, the insider directly owned 246,737 shares of the company’s stock, valued at approximately $28,937,315.36. The trade was a 2.82% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,400 shares of Cisco Systems stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $120.03, for a total value of $2,568,642.00. Following the transaction, the chief executive officer directly owned 637,085 shares in the company, valued at approximately $76,469,312.55. This trade represents a 3.25% 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. In the last three months, insiders have sold 47,650 shares of company stock valued at $5,668,823. 0.01% of the stock is owned by insiders.

Hedge Funds Weigh In On Cisco Systems

Large investors have recently bought and sold shares of the company. Cozad Asset Management Inc. boosted its stake in Cisco Systems by 0.3% during the 1st quarter. Cozad Asset Management Inc. now owns 26,203 shares of the network equipment provider’s stock valued at $2,033,000 after purchasing an additional 87 shares during the period. Dogwood Wealth Management LLC increased its stake in shares of Cisco Systems by 3.9% in the second quarter. Dogwood Wealth Management LLC now owns 2,413 shares of the network equipment provider’s stock valued at $283,000 after purchasing an additional 90 shares during the period. Financial Insights Inc. raised its holdings in shares of Cisco Systems by 1.5% during the first quarter. Financial Insights Inc. now owns 6,220 shares of the network equipment provider’s stock valued at $483,000 after buying an additional 92 shares during the last quarter. CPA Asset Management Group LLC boosted its position in shares of Cisco Systems by 1.8% during the second quarter. CPA Asset Management Group LLC now owns 5,335 shares of the network equipment provider’s stock worth $627,000 after buying an additional 93 shares during the period. Finally, Southern Financial Group LLC grew its holdings in Cisco Systems by 1.1% in the 1st quarter. Southern Financial Group LLC now owns 9,159 shares of the network equipment provider’s stock worth $711,000 after buying an additional 102 shares in the last quarter. Hedge funds and other institutional investors own 73.33% of the company’s stock.

Key Cisco Systems News

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

• Positive Sentiment: UBS expects Cisco to exceed fourth-quarter revenue and earnings consensus estimates. Industry checks indicate accelerating demand for AI networking infrastructure from hyperscale and “neocloud” customers, along with resilient campus-networking spending. Cisco Systems to report amid expectations of continued AI infrastructure strength
• Positive Sentiment: Investors are increasingly focused on Cisco’s AI growth trajectory, rising networking demand and potential order strength ahead of its results. The company’s latest reported quarter also showed 12% year-over-year revenue growth, with EPS and revenue above analyst expectations.
• Positive Sentiment: Cisco has scheduled its fiscal fourth-quarter 2026 results conference call for August 12 after the market close. The event is a near-term catalyst, with investors looking for confirmation that AI-related demand is translating into stronger orders, revenue and guidance. Cisco Schedules Conference Call for Q4 Fiscal Year 2026 Financial Results
• Neutral Sentiment: The stock’s strong year-to-date advance reflects considerable optimism about AI infrastructure growth. Its valuation is also demanding, with a price-to-earnings ratio near 39 and the shares trading well above their 50-day and 200-day moving averages, increasing sensitivity to any earnings or guidance disappointment.
• Negative Sentiment: Zacks Research downgraded Cisco Systems (CSCO) from “strong buy” to “hold.” While the change does not necessarily signal deteriorating fundamentals, it may weigh on sentiment after the stock’s substantial rally. Zacks.com

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.