Cisco Systems (NASDAQ:CSCO) Trading 2.5% Higher on Analyst Upgrade

Cisco Systems, Inc. (NASDAQ:CSCO) shares rose 2.5% during mid-day trading on Friday after HSBC raised their price target on the stock from $74.00 to $77.00. HSBC currently has a hold rating on the stock. Cisco Systems traded as high as $77.30 and last traded at $76.85. Approximately 42,852,289 shares traded hands during trading, an increase of 76% from the average daily volume of 24,388,771 shares. The stock had previously closed at $75.00.

Several other research analysts have also weighed in on the company. Erste Group Bank raised Cisco Systems from a “hold” rating to a “buy” rating in a research report on Monday, November 10th. Citigroup increased their price target on Cisco Systems from $85.00 to $90.00 and gave the company a “buy” rating in a research note on Thursday. Zacks Research raised shares of Cisco Systems from a “hold” rating to a “strong-buy” rating in a research note on Monday, January 26th. BNP Paribas Exane boosted their target price on shares of Cisco Systems from $86.00 to $87.00 and gave the stock an “outperform” rating in a research note on Thursday. Finally, Wall Street Zen cut Cisco Systems from a “buy” rating to a “hold” rating in a research note on Saturday, November 22nd. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $97.19.

Insider Buying and Selling at Cisco Systems

In related news, SVP Maria Victoria Wong sold 9,801 shares of the business’s stock in a transaction on Monday, November 24th. The shares were sold at an average price of $76.38, for a total value of $748,600.38. Following the transaction, the senior vice president owned 33,026 shares in the company, valued at $2,522,525.88. The trade was a 22.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Charles Robbins sold 281,860 shares of the company’s stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $78.35, for a total value of $22,083,731.00. Following the sale, the chief executive officer owned 820,887 shares in the company, valued at approximately $64,316,496.45. The trade was a 25.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 507,122 shares of company stock valued at $39,545,816 over the last three months. 0.01% of the stock is currently owned by corporate insiders.

Cisco Systems News Summary

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

• Positive Sentiment: Cisco’s AI momentum: management said hyperscalers placed about $2.1B of AI‑infrastructure orders and the company unveiled the Silicon One G300 chip aimed at large AI clusters — this supports durable demand for Cisco’s high‑end networking gear. Cisco Q2 press release (AI orders & guidance) Silicon One G300 announcement
• Positive Sentiment: Q2 beat + raised full‑year revenue/EPS ranges: Cisco topped revenue and non‑GAAP EPS estimates and lifted FY26 guidance, which supports upside if AI demand sustains. Cisco Q2 press release
• Positive Sentiment: Analyst backing: multiple firms raised targets and reiterated buys (examples: CICC to $96, UBS/ Citigroup/others lifted targets), adding fresh buy‑side catalyst and headline support for the rally. CICC price‑target raise
• Positive Sentiment: Capital returns: Cisco raised the quarterly dividend and continues buybacks, which helps base valuation support and total‑return appeal for income/ value investors. Dividend & buyback disclosure
• Neutral Sentiment: Long‑term bull narratives: market commentary argues Cisco could see much larger multi‑year gains if AI refresh cycles and share‑buybacks compound — high upside is discussed but speculative. MarketBeat long‑term bullish piece
• Negative Sentiment: Margin pressure from memory costs: investors punished the stock after management warned that rising memory prices are pressuring gross margins — that narrative caused a sharp selloff despite the beat. CNBC: memory prices pressure margins
• Negative Sentiment: Free cash flow and higher capex: FCF declined year‑over‑year as Cisco ramps capex and AI investments — this weakens near‑term cash generation and is a watch item for valuation and buyback sustainability. Barchart: lower free cash flow analysis
• Negative Sentiment: Guidance/expectations mismatch: although FY guidance was raised, some investors viewed near‑term margins and the qualitative tone as “mediocre,” prompting volatility after earnings. MarketWatch: investor reaction to earnings

Institutional Trading of Cisco Systems

Several institutional investors and hedge funds have recently modified their holdings of the stock. Smithfield Trust Co boosted its position in Cisco Systems by 0.3% in the fourth quarter. Smithfield Trust Co now owns 33,666 shares of the network equipment provider’s stock worth $2,596,000 after purchasing an additional 117 shares during the last quarter. Main Management ETF Advisors LLC raised its stake in shares of Cisco Systems by 1.0% during the 4th quarter. Main Management ETF Advisors LLC now owns 12,528 shares of the network equipment provider’s stock valued at $965,000 after purchasing an additional 128 shares during the period. Cairn Investment Group Inc. grew its stake in Cisco Systems by 0.5% during the fourth quarter. Cairn Investment Group Inc. now owns 24,146 shares of the network equipment provider’s stock valued at $1,860,000 after acquiring an additional 130 shares in the last quarter. Juncture Wealth Strategies LLC grew its position in shares of Cisco Systems by 0.9% during the 4th quarter. Juncture Wealth Strategies LLC now owns 15,042 shares of the network equipment provider’s stock valued at $1,159,000 after purchasing an additional 132 shares in the last quarter. Finally, Clearwater Capital Advisors LLC increased its stake in Cisco Systems by 2.5% in the 4th quarter. Clearwater Capital Advisors LLC now owns 5,407 shares of the network equipment provider’s stock worth $417,000 after acquiring an additional 132 shares during the last quarter. 73.33% of the stock is owned by hedge funds and other institutional investors.

Cisco Systems Price Performance

The business’s 50 day moving average is $77.86 and its two-hundred day moving average is $73.00. The company has a debt-to-equity ratio of 0.46, a current ratio of 0.93 and a quick ratio of 0.83. The firm has a market capitalization of $303.64 billion, a PE ratio of 26.97, a P/E/G ratio of 3.23 and a beta of 0.87.

Cisco Systems (NASDAQ:CSCO) last released its earnings results on Wednesday, February 11th. The network equipment provider reported $1.04 EPS for the quarter, beating analysts’ consensus estimates of $1.02 by $0.02. Cisco Systems had a return on equity of 28.06% and a net margin of 19.22%.The business had revenue of $15.35 billion for the quarter, compared to analysts’ expectations of $15.11 billion. During the same quarter in the prior year, the firm earned $0.94 earnings per share. The firm’s revenue was up 9.7% on a year-over-year basis. As a group, research analysts anticipate that Cisco Systems, Inc. will post 3.04 EPS for the current year.

Cisco Systems Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 22nd. Stockholders of record on Thursday, April 2nd will be paid a $0.42 dividend. This is a positive change from Cisco Systems’s previous quarterly dividend of $0.41. The ex-dividend date of this dividend is Thursday, April 2nd. This represents a $1.68 dividend on an annualized basis and a dividend yield of 2.2%. Cisco Systems’s dividend payout ratio is currently 61.65%.

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.