Cisco Systems (NASDAQ:CSCO) Downgraded to “Hold” Rating by Wall Street Zen

Cisco Systems (NASDAQ:CSCO) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Saturday.

A number of other analysts have also weighed in on the stock. Morgan Stanley upped their target price on shares of Cisco Systems from $82.00 to $91.00 and gave the stock an “overweight” rating in a report on Wednesday, December 17th. CICC Research raised their price target on shares of Cisco Systems from $84.00 to $96.00 and gave the company an “outperform” rating in a report on Friday, February 13th. Rosenblatt Securities restated a “buy” rating and set a $100.00 price target on shares of Cisco Systems in a research report on Thursday, February 12th. Citic Securities increased their price objective on Cisco Systems from $75.00 to $90.00 in a research report on Monday, November 17th. Finally, Citigroup lifted their price objective on Cisco Systems from $85.00 to $90.00 and gave the company a “buy” rating in a research note on Thursday, February 12th. Three research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, Cisco Systems presently has a consensus rating of “Moderate Buy” and a consensus target price of $89.55.

Cisco Systems Stock Performance

Shares of CSCO opened at $78.33 on Friday. Cisco Systems has a 52-week low of $52.11 and a 52-week high of $88.18. The stock’s 50-day simple moving average is $78.02 and its 200 day simple moving average is $74.45. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.85 and a current ratio of 0.96. The stock has a market capitalization of $309.39 billion, a price-to-earnings ratio of 27.48, a price-to-earnings-growth ratio of 2.94 and a beta of 0.87.

Cisco Systems (NASDAQ:CSCO) last posted its earnings results on Wednesday, February 11th. The network equipment provider reported $1.04 earnings per share for the quarter, beating analysts’ consensus estimates of $1.02 by $0.02. Cisco Systems had a return on equity of 27.88% and a net margin of 19.22%.The business had revenue of $15.35 billion during the quarter, compared to analyst estimates of $15.11 billion. During the same quarter in the previous year, the firm earned $0.94 EPS. The company’s quarterly revenue was up 9.7% compared to the same quarter last year. Research analysts forecast that Cisco Systems will post 3.04 EPS for the current fiscal year.

Insider Activity

In other news, Director Michael D. Capellas sold 16,150 shares of the stock in a transaction dated Thursday, December 18th. The stock was sold at an average price of $77.28, for a total transaction of $1,248,072.00. Following the transaction, the director directly owned 157,218 shares in the company, valued at approximately $12,149,807.04. This represents a 9.32% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Maria Victoria Wong sold 2,179 shares of the business’s stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $77.74, for a total value of $169,395.46. Following the completion of the sale, the senior vice president owned 28,807 shares of the company’s stock, valued at $2,239,456.18. The trade was a 7.03% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 75,799 shares of company stock worth $5,815,306. 0.01% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Cisco Systems

A number of institutional investors have recently made changes to their positions in the business. Intesa Sanpaolo Wealth Management purchased a new position in shares of Cisco Systems in the fourth quarter worth about $25,000. MidAtlantic Capital Management Inc. purchased a new stake in Cisco Systems during the 4th quarter valued at about $25,000. Bare Financial Services Inc grew its position in Cisco Systems by 531.0% during the 2nd quarter. Bare Financial Services Inc now owns 366 shares of the network equipment provider’s stock worth $25,000 after acquiring an additional 308 shares during the last quarter. Marquette Asset Management LLC bought a new position in Cisco Systems during the 3rd quarter worth approximately $25,000. Finally, Jessup Wealth Management Inc bought a new position in Cisco Systems during the 4th quarter worth approximately $29,000. Hedge funds and other institutional investors own 73.33% of the company’s stock.

Cisco Systems News Roundup

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

• Positive Sentiment: Beat-and-raise quarter: Cisco reported record Q2 revenue and EPS, with hyperscale/cloud AI orders up ~61% to $2.1B and management raising annual AI order expectations — a clear near-term revenue catalyst and reason for investor optimism. Article Title
• Positive Sentiment: Analyst upgrades and higher targets: Multiple firms have raised ratings/targets (Evercore, Citi, Argus, etc.), which supports buying interest and helps lift the stock. Article Title
• Positive Sentiment: Product share gains: Dell’Oro reports Cisco edged out competitors for #1 indoor Wi‑Fi 7 revenue share in 2025 thanks to aggressive pricing — supports near-term hardware demand and competitive positioning. Article Title
• Neutral Sentiment: Dividend raise: Cisco bumped its quarterly dividend to $0.42 (annualized $1.68), a modest positive for income buyers but not a major growth signal. Article Title
• Neutral Sentiment: Valuation & pullback debate: Several pieces weigh whether the recent pullback makes CSCO reasonably priced — useful context for entries but mixed impact on immediate direction. Article Title
• Neutral Sentiment: Investor outreach: Management’s conference presentations (e.g., Morgan Stanley) reiterate networking and AI strengths — improves visibility but is informational rather than catalytic. Article Title
• Negative Sentiment: Margin pressure: Management warned of higher memory costs and a hardware-heavy mix that could compress gross margins despite revenue growth — a key risk to near-term EPS expansion. Article Title
• Negative Sentiment: Insider selling: Recent SEC filings show EVP Thimaya Subaiya sold 1,744 shares and SVP Maria Victoria Wong sold 551 shares last week; amounts are small vs. their holdings but can create short-term sentiment headwinds. Form 4 – Subaiya Form 4 – Wong

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.