Financial Giants Bearish on Cisco Systems Options Activity

Financial giants have turned bearish on Cisco Systems as options data shows 73% of traders making bearish moves. Investors should consider this sentiment moving forward.

Date: 06-03-2025

AI Rating: 4

**Bearish Sentiment on Cisco Systems**

The recent options activity surrounding Cisco Systems (NASDAQ:CSCO) indicates a distinctly bearish sentiment among traders. With 73% of trades reflecting bearish tendencies, as opposed to only 26% being bullish, this trend could significantly impact stock prices negatively.

**Options Trade Details**

Of the trades analyzed, 5 were puts valued at $303,529, while 10 were calls at $684,444. The presence of more puts signifies that traders are anticipating a decline in Cisco's stock price, which could lead to decreased investor confidence and consequently lower stock prices.

**Price Predictions**

The predicted price range of $52.5 to $70.0 for Cisco Systems reveals a cautious outlook. The current market price of $63.38, down by 0.91%, is within this range, suggesting that traders foresee potential headwinds that may prevent price growth beyond this corridor.

**Market Indicators**

The average open interest of options is recorded at 4657.64, with a trading volume of 7,127.00. This volume of trading activity illustrates that traders are actively engaging with options contracts, signaling a heightened interest in Cisco. However, combined with the bearish sentiment, one must tread carefully.

**Analyst Opinions on Cisco**

Professional analysts have mixed feelings regarding Cisco's future. The average price target set by analysts is $70.2, with different ratings ranging from 'Buy' by Citigroup with a target of $73, to 'Equal-Weight' from Barclays with a target of $61. This inconsistency reveals that there is no consensus on Cisco’s future performance, which adds to the uncertainty for potential investors.

Overall, the bearish outlook from the options market combined with varied analyst projections implies that while there may be potential for recovery, investors should be cautious given the current indicators suggest downward pressure on Cisco Systems.

Stocks: CSCO