Cisco Systems (NASDAQ:CSCO) Stock Falls 3.8% – Time to Sell?

Cisco Systems, Inc. (NASDAQ:CSCO) dropped 3.8% during mid-day trading on Friday. The stock traded as low as $103.14 and last traded at $104.51. Approximately 24,294,296 shares were traded during mid-day trading, an increase of 11% from the average session volume of 21,947,719 shares. The stock had previously closed at $108.59.

Cisco Systems News Roundup

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

• Positive Sentiment: AI infrastructure remains a key growth catalyst. Cisco is benefiting from rising hyperscaler demand for networking equipment, while AI workloads, 5G, Wi-Fi 7, and broader connectivity needs support the networking industry’s expansion. Cisco Gains From AI Networking Boom
• Positive Sentiment: Industry research projects the global virtualization-security market will grow from $1.7 billion in 2025 to $4.9 billion by 2032, creating potential demand for Cisco’s security, segmentation, and cloud-native offerings. Virtualization Security Market Report
• Positive Sentiment: Mobile virtualization is projected to reach $21 billion by 2032, with remote work, BYOD, 5G, and tighter data regulations supporting longer-term opportunities for Cisco’s networking and security businesses. Mobile Virtualization Market Report
• Positive Sentiment: Analysts maintain a favorable view ahead of earnings, with a reported consensus price target of $128.52, implying continued confidence in Cisco’s outlook. Cisco Consensus Price Target
• Positive Sentiment: Cisco is experimenting with an AI-assisted rewrite of approximately 98% of its code under a young engineering leader, potentially improving development speed and product productivity, although execution remains unproven. Cisco AI Code Rewrite
• Neutral Sentiment: Cisco’s upcoming report is receiving positive analyst attention after the stock outperformed the broader market, but the preview also raises the bar for results and forward guidance. Cisco Earnings Preview
• Neutral Sentiment: The company’s AI-security and quantum-safe initiatives could strengthen its long-term product portfolio, though the articles provide limited evidence of near-term financial impact. Cisco AI Security and Quantum-Safe Push
• Negative Sentiment: Competitive pressure is increasing: Dell is expanding its AI-security and cyber-resilience capabilities, potentially challenging Cisco in enterprise infrastructure and security markets. Dell Expands AI Security Capabilities
• Negative Sentiment: Recent weakness relative to the broader market suggests investors may be taking profits or demanding stronger earnings and guidance, particularly with CSCO trading at a relatively elevated earnings multiple.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. HSBC lowered Cisco Systems from a “buy” rating to a “hold” rating and reduced their price objective for the stock from $137.00 to $120.00 in a research note on Friday, August 14th. UBS Group lifted their price target on Cisco Systems from $132.00 to $138.00 and gave the stock a “buy” rating in a research note on Thursday, August 13th. Deutsche Bank Aktiengesellschaft assumed coverage on Cisco Systems in a report on Tuesday, September 1st. They set a “buy” rating and a $135.00 price objective on the stock. Morgan Stanley upped their price objective on shares of Cisco Systems from $130.00 to $135.00 and gave the company an “overweight” rating in a research note on Thursday, August 13th. Finally, Truist Financial raised their target price on shares of Cisco Systems from $125.00 to $140.00 and gave the stock a “buy” rating in a report on Thursday, August 13th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $128.52.

Cisco Systems Stock Performance

The company has a current ratio of 0.93, a quick ratio of 0.79 and a debt-to-equity ratio of 0.39. The firm has a 50-day simple moving average of $110.00 and a two-hundred day simple moving average of $101.01. The company has a market capitalization of $412.04 billion, a price-to-earnings ratio of 31.29, a price-to-earnings-growth ratio of 2.18 and a beta of 0.99.

Cisco Systems (NASDAQ:CSCO) last announced its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.05. The business had revenue of $17.25 billion during the quarter, compared to analyst estimates of $16.84 billion. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%. The firm’s revenue was up 17.6% on a year-over-year basis. During the same period in the previous year, the company earned $0.99 EPS. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. As a group, sell-side analysts forecast that Cisco Systems, Inc. will post 4.42 earnings per share for the current fiscal year.

Cisco Systems Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 21st. Investors of record on Friday, October 2nd were given a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend was Friday, October 2nd. Cisco Systems’s dividend payout ratio (DPR) is presently 50.30%.

Insider Transactions at Cisco Systems

In other news, EVP Deborah L. Stahlkopf sold 6,487 shares of the stock in a transaction on Friday, August 14th. The shares were sold at an average price of $111.53, for a total transaction of $723,495.11. Following the transaction, the executive vice president owned 167,116 shares in the company, valued at $18,638,447.48. This represents a 3.74% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 312 shares of the firm’s stock in a transaction on Monday, September 14th. The shares were sold at an average price of $110.18, for a total transaction of $34,376.16. Following the transaction, the executive vice president owned 127,661 shares in the company, valued at $14,065,688.98. This represents a 0.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 44,869 shares of company stock valued at $5,005,620. Insiders own 0.01% of the company’s stock.

Institutional Investors Weigh In On Cisco Systems

Large investors have recently bought and sold shares of the business. Chicago Partners Investment Group LLC raised its holdings in shares of Cisco Systems by 11.8% in the 3rd quarter. Chicago Partners Investment Group LLC now owns 48,505 shares of the network equipment provider’s stock valued at $5,166,000 after purchasing an additional 5,103 shares during the period. Richardson Financial Services Inc. lifted its stake in Cisco Systems by 10.7% in the 3rd quarter. Richardson Financial Services Inc. now owns 5,744 shares of the network equipment provider’s stock valued at $618,000 after purchasing an additional 555 shares during the last quarter. Verity Asset Management Inc. grew its holdings in Cisco Systems by 5.0% during the third quarter. Verity Asset Management Inc. now owns 5,936 shares of the network equipment provider’s stock worth $639,000 after purchasing an additional 281 shares during the period. Caldwell Trust Co grew its holdings in Cisco Systems by 0.9% during the third quarter. Caldwell Trust Co now owns 73,721 shares of the network equipment provider’s stock worth $7,935,000 after purchasing an additional 627 shares during the period. Finally, 3Chopt Investment Partners LLC increased its position in Cisco Systems by 3.3% during the third quarter. 3Chopt Investment Partners LLC now owns 57,312 shares of the network equipment provider’s stock worth $6,168,000 after buying an additional 1,853 shares during the last quarter. 73.33% of the stock is currently owned by institutional investors.

Cisco Systems Company Profile

Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration and observability solutions for businesses, government organizations and service providers. Its offerings include routers, switches, wireless networking equipment, data-center infrastructure, security software and services, as well as technologies that support cloud and hybrid IT environments.

The company also provides collaboration tools through its Webex portfolio, cloud-managed networking through Cisco Meraki and security and observability capabilities that include technologies from Splunk, which Cisco acquired in 2024.