Stocks in Motion: EDS, Delta Moved by SEC Filings

Updated from 1:10 p.m. EDT

Electronic Data Systems(EDS Quote) announced Monday that it may lower its dividend and issue shares to raise capital. Shares of the Plano, Texas-based firm traded heavily in reaction Tuesday, with more than 12 million shares trading hands. Shares of EDS traded down $1.03, or 5.9%, to $16.48.

In a filing with the Securities and Exchange Commission, the company said that it might cut its dividend by two-thirds because it "believes it is beneficial to our competitive position to maintain our investment grade rating and, over the longer term, to return to our historical solid 'A' rating." The company also said that it might issue in excess of $1 billion worth of equity or equity-linked securities to help shore up its balance sheet.

According to The Wall Street Journal, EDS has been in discussions with Moody's Investors Service for more than a week over its debt rating, which now stands one level above junk status.

Shares of Cisco(CSCO Quote) also traded actively on Tuesday as Wall Street prepared for the networking giant's earnings.

After the bell, Cisco announced that it earned 19 cents per share on revenue of $5.6 billion. Analysts were looking for the company to earn 18 cents per share on revenue of $5.55 billion. Investors will be listening to the company's conference call for hints that may portend better days ahead for the technology segment in general and for Cisco in particular.

Shares of Cisco traded up 63 cents, or 2.9%, to $22.25 on volume of 86.1 million shares.

Delta Airlines(DAL Quote) told investors Monday that it may have to file for bankruptcy protection if it doesn't get wage concessions from its pilots. Shares of Delta traded up 6 cents, or 1.3%, to $4.60 on volume of over 15 million shares.