Cisco Systems (NASDAQ:CSCO) Stock Breaks Above 50 Day Moving Average – Should You Sell?

Cisco Systems, Inc. (NASDAQ:CSCO) crossed above its 50 day moving average during trading on Monday. The stock has a 50 day moving average of $110.23 and traded as high as $111.01. Cisco Systems shares last traded at $110.24, with a volume of 20,453,730 shares traded.

More Cisco Systems News

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

• Positive Sentiment: AI-focused partner strategy: At Cisco Partner Summit, the company introduced updates to its Cisco 360 partner program, including ecosystem deal registration, new incentives, AI-enabled tools, and broader availability of Cisco IQ. The initiatives are designed to help partners capture increased enterprise spending on AI-ready networking and could support future revenue growth. Cisco Expands Partner Opportunity with New Cisco 360 Program Updates, High Yield Customer Experience Offerings, and AI-Ready Innovations
• Positive Sentiment: Expanded Cisco IQ adoption: Presidio is integrating Cisco IQ with its Presidio Advisor platform, combining Cisco’s AI-powered operational intelligence with multi-vendor lifecycle management. The agreement may increase the visibility and commercial reach of Cisco IQ while reinforcing Cisco’s position in proactive IT management and security. Presidio Integrates Cisco IQ with Presidio Advisor
• Positive Sentiment: Fundamental and analyst support: Wall Street’s generally bullish view, along with Cisco’s latest earnings beat, 17.6% revenue growth, and raised fiscal-year outlook, continues to attract investor attention. Is It Worth Investing in Cisco Based on Wall Street’s Bullish Views?
• Neutral Sentiment: Trading considerations: Technical coverage describes a rebound but highlights resistance ahead. Cisco’s shares trade well above their 200-day moving average, while a P/E near 33 may make investors more sensitive to execution and forward-growth expectations. Cisco Bounces Back: Can It Break Through Resistance?
• Neutral Sentiment: A report showing zero short interest offers no meaningful bearish or short-covering signal and appears inconsistent with the claim of a large increase in short interest.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on CSCO. Sanford C. Bernstein assumed coverage on Cisco Systems in a research note on Wednesday, September 30th. They issued a “market perform” rating and a $110.00 target price for the company. Rosenblatt Securities increased their price objective on shares of Cisco Systems from $150.00 to $165.00 and gave the stock a “buy” rating in a report on Thursday, August 13th. Weiss Ratings restated a “buy (b)” rating on shares of Cisco Systems in a research report on Wednesday, August 26th. Zacks Research upgraded shares of Cisco Systems from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, September 30th. Finally, HSBC lowered shares of Cisco Systems from a “buy” rating to a “hold” rating and reduced their target price for the stock from $137.00 to $120.00 in a research report on Friday, August 14th. Three investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $128.52.

Cisco Systems Trading Up 3.5%

The business has a 50 day moving average of $110.23 and a 200 day moving average of $100.14. 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 $434.63 billion, a price-to-earnings ratio of 33.01, a PEG ratio of 2.22 and a beta of 0.99.

Cisco Systems (NASDAQ:CSCO) last issued its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.17 by $0.05. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%. The firm had revenue of $17.25 billion for the quarter, compared to analysts’ expectations of $16.84 billion. During the same quarter last year, the business earned $0.99 earnings per share. The company’s revenue was up 17.6% compared to the same quarter last year. 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, research analysts predict that Cisco Systems, Inc. will post 4.42 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 21st. Stockholders of record on Friday, October 2nd were given a dividend of $0.42 per share. The ex-dividend date of this dividend was Friday, October 2nd. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.5%. Cisco Systems’s dividend payout ratio (DPR) is currently 50.30%.

Insider Buying and Selling at Cisco Systems

In other Cisco Systems news, insider Jeetendra Patel sold 7,170 shares of the firm’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $111.57, for a total transaction of $799,956.90. Following the sale, the insider directly owned 230,593 shares in the company, valued at approximately $25,727,261.01. This trade represents a 3.02% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,628 shares of Cisco Systems stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $111.54, for a total transaction of $2,412,387.12. Following the completion of the transaction, the chief executive officer directly owned 602,710 shares in the company, valued at approximately $67,226,273.40. The trade was a 3.46% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 44,869 shares of company stock worth $5,005,620 in the last quarter. Company insiders own 0.01% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of CSCO. SYM FINANCIAL Corp raised its position in Cisco Systems by 2.8% in the 3rd quarter. SYM FINANCIAL Corp now owns 20,389 shares of the network equipment provider’s stock valued at $2,195,000 after buying an additional 555 shares during the last quarter. Ashton Thomas Securities LLC lifted its stake in Cisco Systems by 6.5% in the 3rd quarter. Ashton Thomas Securities LLC now owns 11,087 shares of the network equipment provider’s stock valued at $1,193,000 after acquiring an additional 679 shares in the last quarter. Total Clarity Wealth Management Inc. boosted its position in Cisco Systems by 146.3% during the 3rd quarter. Total Clarity Wealth Management Inc. now owns 4,477 shares of the network equipment provider’s stock worth $482,000 after acquiring an additional 2,659 shares during the last quarter. Lodestar Private Asset Management LLC grew its stake in shares of Cisco Systems by 5.5% during the 3rd quarter. Lodestar Private Asset Management LLC now owns 9,671 shares of the network equipment provider’s stock worth $1,041,000 after acquiring an additional 506 shares in the last quarter. Finally, Cahaba Wealth Management Inc. grew its stake in shares of Cisco Systems by 4.8% during the 3rd quarter. Cahaba Wealth Management Inc. now owns 3,600 shares of the network equipment provider’s stock worth $387,000 after acquiring an additional 164 shares in the last quarter. 73.33% of the stock is currently owned by institutional investors.

About Cisco Systems

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.