Cisco Systems (NASDAQ:CSCO) Downgraded by Zacks Research to Hold

Zacks Research lowered shares of Cisco Systems (NASDAQ:CSCO) from a strong-buy rating to a hold rating in a research note issued to investors on Tuesday,Zacks.com reports.

A number of other equities research analysts also recently issued reports on CSCO. KeyCorp increased their price objective on shares of Cisco Systems from $125.00 to $130.00 and gave the stock an “overweight” rating in a research note on Thursday, June 25th. Citigroup lifted their price objective on shares of Cisco Systems from $90.00 to $112.00 and gave the company a “buy” rating in a research note on Thursday, May 14th. The Goldman Sachs Group upped their target price on Cisco Systems from $116.00 to $125.00 and gave the stock a “neutral” rating in a research note on Wednesday, June 3rd. Barclays lifted their price target on shares of Cisco Systems from $76.00 to $121.00 and gave the company an “equal weight” rating in a report on Thursday, May 14th. Finally, Citic Securities boosted their price target on Cisco Systems from $90.00 to $130.00 in a report on Friday, May 15th. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $123.14.

Cisco Systems Stock Performance

CSCO opened at $121.50 on Tuesday. The company has a quick ratio of 0.81, a current ratio of 0.92 and a debt-to-equity ratio of 0.40. The business has a 50 day moving average of $117.68 and a 200-day moving average of $97.05. Cisco Systems has a 12-month low of $65.75 and a 12-month high of $130.37. The stock has a market cap of $478.88 billion, a price-to-earnings ratio of 39.45, a PEG ratio of 2.74 and a beta of 1.02.

Cisco Systems (NASDAQ:CSCO) last announced its earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share for the quarter, topping analysts’ consensus estimates of $1.03 by $0.03. The company had revenue of $15.84 billion for the quarter, compared to analyst estimates of $15.56 billion. Cisco Systems had a return on equity of 28.44% and a net margin of 20.14%.The firm’s quarterly revenue was up 12.0% compared to the same quarter last year. During the same quarter last year, the company earned $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, equities research analysts expect that Cisco Systems will post 3.54 earnings per share for the current 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 $0.42 dividend. This represents a $1.68 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend was Monday, July 6th. Cisco Systems’s payout ratio is 54.55%.

Insider Transactions at Cisco Systems

In other news, EVP Oliver Tuszik sold 2,607 shares of the business’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $121.12, for a total transaction of $315,759.84. Following the completion of the sale, the executive vice president directly owned 172,727 shares of the company’s stock, valued at $20,920,694.24. The trade was a 1.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 7,127 shares of Cisco Systems stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $119.91, for a total value of $854,598.57. Following the sale, the executive vice president owned 140,857 shares in the company, valued at $16,890,162.87. This trade represents a 4.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 47,650 shares of company stock valued at $5,668,823. Company insiders own 0.01% of the company’s stock.

Hedge Funds Weigh In On Cisco Systems

A number of institutional investors have recently added to or reduced their stakes in the business. MidAtlantic Capital Management Inc. bought a new stake in shares of Cisco Systems during the 4th quarter worth $25,000. Intesa Sanpaolo Wealth Management purchased a new stake in Cisco Systems in the fourth quarter worth $25,000. Networth Advisors LLC increased its position in 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 purchasing an additional 246 shares during the period. Financial Life Planners purchased a new stake in shares of Cisco Systems in the 1st quarter worth about $27,000. Finally, Manning & Napier Advisors LLC boosted its position in 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 acquiring an additional 200 shares in the last quarter. 73.33% of the stock is currently owned by institutional investors.

Key Stories Impacting Cisco Systems

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

• Positive Sentiment: UBS expects Cisco to exceed fourth-quarter revenue and earnings consensus estimates. Industry checks indicate accelerating demand for AI networking infrastructure from hyperscale and “neocloud” customers, along with resilient campus-networking spending. Cisco Systems to report amid expectations of continued AI infrastructure strength
• Positive Sentiment: Investors are increasingly focused on Cisco’s AI growth trajectory, rising networking demand and potential order strength ahead of its results. The company’s latest reported quarter also showed 12% year-over-year revenue growth, with EPS and revenue above analyst expectations.
• Positive Sentiment: Cisco has scheduled its fiscal fourth-quarter 2026 results conference call for August 12 after the market close. The event is a near-term catalyst, with investors looking for confirmation that AI-related demand is translating into stronger orders, revenue and guidance. Cisco Schedules Conference Call for Q4 Fiscal Year 2026 Financial Results
• Neutral Sentiment: The stock’s strong year-to-date advance reflects considerable optimism about AI infrastructure growth. Its valuation is also demanding, with a price-to-earnings ratio near 39 and the shares trading well above their 50-day and 200-day moving averages, increasing sensitivity to any earnings or guidance disappointment.
• Negative Sentiment: Zacks Research downgraded Cisco Systems (CSCO) from “strong buy” to “hold.” While the change does not necessarily signal deteriorating fundamentals, it may weigh on sentiment after the stock’s substantial rally. Zacks.com

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.