Cisco Stock (CSCO): Strong Earnings and Heavy Selling – What’s Happening?

TLDR

• Shares of Cisco ( CSCO ) fell 4.4% on Friday, trading as low as $112.86, on volume more than double the daily average.
• The company beat Q3 estimates with $1.06 EPS on revenue of $15.84 billion, up 12% year-over-year.
• Analysts hold a Moderate Buy consensus with an average price target of $123.14; KeyCorp raised its target to $130.
• GuruFocus reports that CSCO is overvalued, with the stock trading 66.6% above GF’s value estimate of $68.30.
• Insiders sold roughly $7.2 million worth of stock over the last three months, without reporting any buying activity.

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Cisco Systems (CSCO) stock fell 4.4% on Friday, hitting a low of $112.86 before closing at $113.77. The previous close was $118.97.

Cisco Systems, Inc., Cisco

The volume told its own story. About 50.1 million shares changed hands, more than double the average daily volume of 24 million. This type of business activity usually means that something has caught the attention of the market.

This decline comes despite strong recent earnings printing. In the last quarter, cisco It reported EPS of $1.06, beating the consensus estimate of $1.03. Revenues were $15.84 billion, higher than the expected $15.56 billion, and up 12% from the same period last year.

Cisco also provided Q4 2026 guidance of $1.16 to $1.18 per share, and full-year 2026 guidance of $4.27 to $4.29 per share.

A quarterly dividend of $0.42 has been declared, payable on July 22 to shareholders of record on July 6. This results in an annual return of 1.5%.

Analysts’ targets are still positive

Analyst sentiment was broadly positive despite Friday’s move. KeyCorp reiterated an Overweight rating and raised its target to $130. Bank of America has a Buy rating with a target of $150. Goldman Sachs is neutral with a target of $125. Barclays rates its equal weight at $121.

The overall consensus is a Moderate Buy, with an average price target of $123.14 across 25 analysts – two with a Strong Buy, 15 with a Buy, and eight with a Hold.

CICC Research raised its target to $125 with an outperform rating in May. However, Zacks downgraded the stock from a Strong Buy to decline in April.

The stock has a market cap of $448.42 billion, a price-to-earnings ratio of 36.94, and a beta of 1.01. The 50-day moving average is at $109.17 and the 200-day moving average is at $89.29.

Red flag assessment

GuruFocus is less optimistic. Estimate the value of its GF cisco The intrinsic value is at $68.30, making the current price around 66.6% above that number. This gives the stock a “significantly overvalued” rating.

Cisco’s current P/E of 36.9x is well above the 5-year average of 19.8x – a premium of roughly 87%.

The GF score comes in at 81/100, with strong marks for profitability (8/10) and growth (8/10), but the valuation score is just 3/10.

Indoor activity adds another layer of caution. Over the last three months, insiders have sold approximately $7.2 million worth of shares, with no purchases. EVP Thimaya Subaiya sold 7,127 units on June 16 at an average price of $119.91. EVP Oliver Tuszik sold 2,607 units on June 11 at $121.12. Both sales were executed under pre-arranged Rule 10b5-1 plans.

Institutional investors own 73.33% of the shares. Several large funds added to their positions in the fourth quarter, including Truist Financial, which owns more than 4.3 million units.

The stock’s 52-week price range is between $65.75 and $130.37, which puts Friday’s close near the higher end of that range.