Cisco Systems (NASDAQ:CSCO) Stock Price Down 2.1% – Here’s Why
by Doug Wharley · The Cerbat GemCisco Systems, Inc. (NASDAQ:CSCO – Get Free Report)’s share price fell 2.1% during mid-day trading on Thursday. The stock traded as low as $114.69 and last traded at $114.89. Approximately 12,947,872 shares were traded during mid-day trading, a decline of 42% from the average session volume of 22,498,871 shares. The stock had previously closed at $117.39.
Key Headlines Impacting Cisco Systems
Here are the key news stories impacting Cisco Systems this week:
- Positive Sentiment: AI networking growth is driving optimism: Cisco is being positioned as a potential leader in AI cloud networking, supported by rising hyperscaler orders, AI infrastructure demand and a solid fiscal 2027 outlook. Buy Cisco Systems as Leader of the AI Cloud Networking Space for 2027
- Positive Sentiment: New AI products expand Cisco’s growth story: The company introduced agentic AI tools for Webex, workplace automation and customer experience, along with Google Meet compatibility for Cisco devices and upcoming RoomOS updates. These initiatives could support longer-term software and collaboration growth. Cisco unveils agentic AI tools across Webex, workplace and CX
- Positive Sentiment: Analyst sentiment remains favorable: Coverage highlights Cisco’s recent momentum, fifth consecutive earnings beat and optimistic average brokerage recommendation, helping reinforce the bullish case for CSCO. Is Cisco a Buy as Wall Street Analysts Look Optimistic?
- Positive Sentiment: Board appointment adds technology expertise: Cisco appointed Girish Rishi to its board, bringing experience in data, AI, product development, supply chain and mergers and acquisitions. The appointment is strategically aligned with Cisco’s AI and networking priorities. Cisco Appoints Girish Rishi to its Board of Directors
- Neutral Sentiment: Revenue growth is concentrated in products: Recent quarterly product revenue rose sharply to $13.459 billion, while services revenue was nearly flat at $3.793 billion. Strong product demand is encouraging, but limited services growth may constrain recurring-revenue expansion. Cisco’s Product Sales Surged. Why Were Services Almost Flat?
- Negative Sentiment: Valuation and cooled momentum remain risks: After a substantial year-to-date advance, recent performance has weakened, while commentary questions whether Cisco’s valuation already reflects much of the AI opportunity. Cisco Could Be Entering a New Growth Phase
Analysts Set New Price Targets
Several equities research analysts recently weighed in on the stock. Barclays raised their price target on shares of Cisco Systems from $121.00 to $123.00 and gave the company an “equal weight” rating in a research report on Thursday, August 13th. UBS Group boosted 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 issued a “buy” rating and a $135.00 price objective for the company. Wall Street Zen downgraded shares of Cisco Systems from a “buy” rating to a “hold” rating in a report on Saturday, October 3rd. Finally, Freedom Capital raised shares of Cisco Systems from a “hold” rating to a “strong-buy” rating in a report on Sunday, August 16th. Three investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $128.52.
Check Out Our Latest Stock Analysis on CSCO
Cisco Systems Trading Up 3.0%
The stock’s 50-day simple moving average is $112.18 and its two-hundred day simple moving average is $107.77. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.93 and a quick ratio of 0.79. The firm has a market capitalization of $466.76 billion, a P/E ratio of 35.45, a price-to-earnings-growth ratio of 2.39 and a beta of 0.99.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last released its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share for the quarter, beating analysts’ consensus estimates of $1.17 by $0.05. The company had revenue of $17.25 billion for the quarter, compared to analysts’ expectations of $16.84 billion. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. Cisco Systems’s revenue for the quarter was up 17.6% on a year-over-year basis. During the same quarter 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. Equities research analysts expect that Cisco Systems, Inc. will post 4.42 EPS for the current year.
Cisco Systems Announces Dividend
The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd will be paid a $0.42 dividend. This represents a $1.68 annualized dividend and a yield of 1.4%. The ex-dividend date is Friday, October 2nd. Cisco Systems’s dividend payout ratio is presently 50.30%.
Insider Buying and Selling at Cisco Systems
In related news, EVP Oliver Tuszik sold 680 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 $74,922.40. Following the completion of the transaction, the executive vice president directly owned 163,337 shares of the company’s stock, valued at approximately $17,996,470.66. This trade represents a 0.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 312 shares of the business’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $110.18, for a total transaction of $34,376.16. Following the completion of the sale, the executive vice president owned 127,661 shares in the company, valued at approximately $14,065,688.98. The trade was 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 90 days, insiders sold 44,869 shares of company stock worth $5,005,620. Insiders own 0.01% of the company’s stock.
Hedge Funds Weigh In On Cisco Systems
Institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new stake in Cisco Systems in the second quarter worth $42,129,647,000. State Street Corp increased its holdings in shares of Cisco Systems by 7.0% in the 2nd quarter. State Street Corp now owns 207,106,569 shares of the network equipment provider’s stock worth $25,278,492,000 after buying an additional 13,512,872 shares during the last quarter. Bank of America Corp DE purchased a new stake in shares of Cisco Systems during the 2nd quarter valued at about $5,892,379,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in Cisco Systems by 2.7% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 43,450,141 shares of the network equipment provider’s stock worth $5,103,654,000 after acquiring an additional 1,143,106 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new stake in Cisco Systems during the second quarter valued at approximately $4,714,574,000. Hedge funds and other institutional investors own 73.33% of the company’s stock.
Cisco Systems Company Profile
Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration, observability and data center solutions. Its products and services help businesses, governments, educational institutions and other organizations connect users and devices, manage infrastructure, protect digital environments and support cloud-based operations.
Cisco’s portfolio includes routers and switches, wireless networking equipment, network management software, firewalls, identity and access tools, endpoint security products, collaboration applications and observability platforms.