Cisco Systems (NASDAQ:CSCO) Trading 5.5% Higher – Still a Buy?

Cisco Systems, Inc. (NASDAQ:CSCO) was up 5.5% during mid-day trading on Tuesday . The stock traded as high as $121.95 and last traded at $128.0450. Approximately 23,937,699 shares changed hands during trading, a decline of 13% from the average daily volume of 27,487,546 shares. The stock had previously closed at $121.33.

Key Cisco Systems News

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

• Positive Sentiment: Cisco unveiled Cisco Cloud Control, a unified platform for managing and defending critical infrastructure with AI agents, which strengthens its position in enterprise AI and cybersecurity. Cisco Unveils Agentic Platform for Operating and Defending Critical IT Infrastructure
• Positive Sentiment: The company is promoting new AI-powered cybersecurity products, including Live Protect, which could support future product demand and revenue growth. Cisco Live Protect cybersecurity software to combat AI-powered attacks
• Positive Sentiment: Recent coverage also points to record revenue, strong AI infrastructure orders, and guidance above expectations, which adds to the bullish tone around CSCO. Cisco Systems (CSCO) Valuation Check After Record Revenue And Strong AI Infrastructure Momentum
• Positive Sentiment: Unusually heavy call-option buying suggests traders are positioning for more upside in the stock. Cisco Advances 5% to Record Highs on AI Cybersecurity Push, Arista Climbs as Networking Trade Extends
• Neutral Sentiment: Broader commentary notes Cisco has already had a strong multi-week run, so some investors are now weighing whether the rally has gone too far. Is It Too Late To Consider Cisco Systems (CSCO) After Its Strong Share Price Run
• Neutral Sentiment: Analysts remain generally constructive, with brokerages maintaining a moderate buy stance, supporting the stock but not adding a new catalyst. Cisco Systems, Inc. Given Consensus Rating of “Moderate Buy” by Brokerages

Wall Street Analyst Weigh In

Several research analysts recently issued reports on CSCO shares. Bank of America increased their target price on shares of Cisco Systems from $114.00 to $135.00 and gave the stock a “buy” rating in a research note on Tuesday, May 26th. BNP Paribas Exane increased their target price on shares of Cisco Systems from $87.00 to $132.00 and gave the stock an “outperform” rating in a research note on Thursday, May 14th. Rosenblatt Securities reissued a “buy” rating and set a $100.00 target price on shares of Cisco Systems in a research note on Thursday, February 12th. Morgan Stanley increased their target price on shares of Cisco Systems from $91.00 to $120.00 and gave the stock an “overweight” rating in a research note on Thursday, May 14th. Finally, CICC Research upped their price objective on shares of Cisco Systems from $96.00 to $125.00 and gave the stock an “outperform” rating in a report on Monday, May 18th. Two analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $119.09.

Cisco Systems Stock Performance

The company’s fifty day simple moving average is $94.31 and its two-hundred day simple moving average is $83.61. The stock has a market cap of $504.68 billion, a price-to-earnings ratio of 41.57, a P/E/G ratio of 3.16 and a beta of 1.01. The company has a debt-to-equity ratio of 0.40, a current ratio of 0.92 and a quick ratio of 0.81.

Cisco Systems (NASDAQ:CSCO) last announced its earnings results 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 company had revenue of $15.84 billion during the quarter, compared to the consensus estimate of $15.56 billion. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The firm’s revenue for the quarter was up 12.0% on a year-over-year basis. During the same quarter in the prior year, the company 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. On average, analysts forecast that Cisco Systems, Inc. will post 3.44 earnings per share for the current year.

Cisco Systems Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 22nd. Investors of record on Monday, July 6th will be issued a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date is Monday, July 6th. Cisco Systems’s dividend payout ratio (DPR) is 54.55%.

Insider Activity

In other Cisco Systems news, EVP Deborah L. Stahlkopf sold 7,981 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $79.50, for a total transaction of $634,489.50. Following the completion of the transaction, the executive vice president owned 187,097 shares in the company, valued at $14,874,211.50. This trade represents a 4.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Charles Robbins sold 21,400 shares of the firm’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $120.03, for a total transaction of $2,568,642.00. Following the completion of the transaction, the chief executive officer owned 637,085 shares of the company’s stock, valued at $76,469,312.55. This trade represents a 3.25% decrease in their ownership of the stock. 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 have sold 51,324 shares of company stock valued at $5,559,834. 0.01% of the stock is currently owned by corporate insiders.

Institutional Trading of Cisco Systems

Large investors have recently added to or reduced their stakes in the stock. MidAtlantic Capital Management Inc. bought a new stake in Cisco Systems in the fourth quarter valued at $25,000. Intesa Sanpaolo Wealth Management bought a new stake in Cisco Systems in the fourth quarter valued at $25,000. Networth Advisors LLC boosted its holdings in shares of Cisco Systems by 276.4% during the 1st quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider’s stock valued at $26,000 after buying an additional 246 shares in the last quarter. Financial Life Planners bought a new stake in shares of Cisco Systems during the 1st quarter valued at $27,000. Finally, Manning & Napier Advisors LLC boosted its holdings in shares of Cisco Systems by 137.0% during the 1st quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider’s stock valued at $27,000 after buying an additional 200 shares in the last quarter. Institutional investors own 73.33% of the company’s stock.

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.