Cisco Systems (NASDAQ:CSCO) Stock Price Down 1.7% – Time to Sell?

Cisco Systems, Inc. (NASDAQ:CSCO)’s stock price dropped 1.7% during mid-day trading on Tuesday . The company traded as low as $120.12 and last traded at $120.43. 16,268,120 shares traded hands during mid-day trading, a decline of 31% from the average daily volume of 23,407,471 shares. The stock had previously closed at $122.57.

Cisco Systems News Summary

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

• Positive Sentiment: Analysts expect fourth-quarter revenue of approximately $16.85 billion and adjusted EPS of $1.17, implying mid-to-high-teen growth in both measures. Investors will be watching whether networking demand, AI infrastructure spending and the Splunk integration can support continued momentum. Cisco earnings preview: where options data suggest CSCO is headed
• Positive Sentiment: Cisco is rolling out personalized AI agents to its approximately 90,000 employees, investing in supporting infrastructure and setting AI-driven revenue targets. The initiative could improve productivity and create new revenue streams, reinforcing the company’s positioning in enterprise AI networking. Cisco puts 90,000 workers on personalized AI agents
• Neutral Sentiment: Options activity and recent technical commentary suggest investors expect Cisco to remain in a relatively tight trading range around earnings, despite analysts raising price targets. This points to uncertainty about the size of any post-earnings move rather than a clear directional signal. Cisco Systems is in a trading range ahead of earnings
• Negative Sentiment: Pre-earnings caution reflects risks including higher memory costs, competition, and the pace and expense of Splunk’s cloud transition. Any weaker-than-expected guidance or evidence that AI-related growth is already priced into CSCO could pressure the stock. Should Buy, Sell or Hold Cisco Stock Before Q4 Earnings?

Wall Street Analysts Forecast Growth

CSCO has been the subject of several research analyst reports. Morgan Stanley lifted their price objective on shares of Cisco Systems from $120.00 to $130.00 and gave the company an “overweight” rating in a research note on Friday, June 12th. New Street Research raised their price target on shares of Cisco Systems from $82.00 to $122.00 and gave the stock a “neutral” rating in a report on Thursday, May 14th. Wall Street Zen downgraded shares of Cisco Systems from a “buy” rating to a “hold” rating in a research note on Tuesday, July 28th. Weiss Ratings upgraded shares of Cisco Systems from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, May 29th. Finally, Citic Securities increased their price objective on shares of Cisco Systems from $90.00 to $130.00 in a research report on Friday, May 15th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Cisco Systems currently has an average rating of “Moderate Buy” and an average target price of $123.14.

Cisco Systems Trading Down 1.7%

The business has a fifty day moving average of $117.77 and a 200-day moving average of $98.05. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.81 and a current ratio of 0.92. The company has a market capitalization of $474.79 billion, a P/E ratio of 39.11, a PEG ratio of 2.74 and a beta of 1.02.

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

Cisco Systems Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 22nd. Shareholders of record on Monday, July 6th were paid a dividend of $0.42 per share. The ex-dividend date was Monday, July 6th. This represents a $1.68 dividend on an annualized basis and a yield of 1.4%. Cisco Systems’s payout ratio is 54.55%.

Insider Activity

In related news, 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 transaction of $2,568,642.00. Following the transaction, the chief executive officer owned 637,085 shares of the company’s stock, valued at $76,469,312.55. The trade was a 3.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,607 shares of the company’s stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $121.12, for a total value of $315,759.84. Following the sale, the executive vice president owned 172,727 shares of the company’s stock, valued at $20,920,694.24. This trade represents a 1.49% 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. In the last three months, insiders sold 47,650 shares of company stock worth $5,668,823. Company insiders own 0.01% of the company’s stock.

Hedge Funds Weigh In On Cisco Systems

Several large investors have recently bought and sold shares of CSCO. MidAtlantic Capital Management Inc. purchased a new stake in shares of Cisco Systems in the fourth quarter valued at about $25,000. Intesa Sanpaolo Wealth Management bought a new position in shares of Cisco Systems during the fourth quarter valued at about $25,000. Networth Advisors LLC boosted its holdings in Cisco Systems by 276.4% during the first quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider’s stock worth $26,000 after purchasing an additional 246 shares during the last quarter. Financial Life Planners purchased a new position in Cisco Systems during the first quarter worth about $27,000. Finally, Manning & Napier Advisors LLC grew its position in Cisco Systems by 137.0% in the 1st quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider’s stock worth $27,000 after purchasing an additional 200 shares in 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 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.