15,590 Cisco Systems, Inc. $CSCO Shares Sold by Sepio Capital LP

Key Points

• Sepio Capital reduced its Cisco stake by 35.8%, selling 15,590 shares and retaining 27,937 shares valued at approximately $3.0 million. Institutional investors and hedge funds collectively own 73.33% of Cisco.
• Cisco is positioning for AI-driven data-center spending with high-density networking products, expanded SONiC support and AI-operations security tools, though investors remain divided over whether the opportunity justifies the stock’s elevated valuation.
• Cisco recently exceeded quarterly earnings and revenue estimates, reporting $1.22 in EPS and $17.25 billion in revenue, while maintaining a $0.42 quarterly dividend. Analysts have a consensus “Moderate Buy” rating and an average price target of $128.52.

Sepio Capital LP trimmed its stake in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 35.8% during the third quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 27,937 shares of the network equipment provider's stock after selling 15,590 shares during the period. Sepio Capital LP's holdings in Cisco Systems were worth $3,007,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the stock. WP Advisors LLC lifted its position in Cisco Systems by 47.2% during the 3rd quarter. WP Advisors LLC now owns 2,536 shares of the network equipment provider's stock worth $273,000 after acquiring an additional 813 shares during the last quarter. Sharkey Howes & Javer grew its position in shares of Cisco Systems by 12.7% in the third quarter. Sharkey Howes & Javer now owns 3,038 shares of the network equipment provider's stock valued at $327,000 after purchasing an additional 343 shares during the last quarter. Benin Management CORP grew its position in shares of Cisco Systems by 21.5% in the third quarter. Benin Management CORP now owns 41,918 shares of the network equipment provider's stock valued at $4,512,000 after purchasing an additional 7,430 shares during the last quarter. Northern Lights Advisors Inc. increased its stake in shares of Cisco Systems by 19.7% in the third quarter. Northern Lights Advisors Inc. now owns 3,640 shares of the network equipment provider's stock worth $392,000 after purchasing an additional 600 shares during the period. Finally, Legacy Financial Group Inc. increased its stake in shares of Cisco Systems by 8.2% in the third quarter. Legacy Financial Group Inc. now owns 3,113 shares of the network equipment provider's stock worth $335,000 after purchasing an additional 236 shares during the period. 73.33% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, insider Jeetendra I. Patel sold 7,170 shares of the company's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $111.57, for a total value of $799,956.90. Following the sale, the insider owned 230,593 shares of the company's stock, valued at approximately $25,727,261.01. This represents a 3.02% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,760 shares of the stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $112.46, for a total transaction of $310,389.60. Following the sale, the executive vice president owned 165,276 shares of the company's stock, valued at $18,586,938.96. This trade represents a 1.64% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 44,869 shares of company stock valued at $5,005,620. 0.01% of the stock is owned by company insiders.

Cisco Systems News Roundup

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

• Positive Sentiment: Cisco unveiled high-density AI networking products, including Silicon One G302 switches and a planned 400Gb/s-per-lane optical module developed with NVIDIA, TE Connectivity and Amphenol. Expanded SONiC support and AI-operations security tools strengthen the company’s effort to capture spending across networking hardware, silicon, optics and software. Did AI Networking Expansion Just Shift Cisco's Investment Narrative?
• Positive Sentiment: Longer-term bullish commentary argues that Cisco can benefit from continued AI data-center investment and from software that helps customers monitor AI usage and control rising model-inference costs. Cisco: Can It Profit From Helping Customers Spend Less on AI?
• Neutral Sentiment: ETF funds were net sellers of CSCO on October 20, adding a technical source of pressure that does not necessarily reflect a change in Cisco’s operating outlook. ETFs Are Net Sellers of Cisco
• Neutral Sentiment: Analysts continue to debate whether Cisco’s AI opportunity represents a durable shift from its traditional enterprise networking business. Comparisons with Arista Networks highlight the importance of execution, data-center design wins and margins. Arista Networks Versus Cisco Systems
• Negative Sentiment: The latest decline reflects Cisco falling more than the broader market, while commentary from Seeking Alpha characterized the stock’s AI narrative as overbought and maintained a Hold view. At a price-to-earnings ratio above 31, investors may be demanding substantial AI growth before awarding the shares a higher valuation. Here's Why Cisco Systems Fell More Than the Broader Market

Cisco Systems Stock Performance

NASDAQ CSCO opened at $104.89 on Friday. The stock has a market cap of $413.54 billion, a P/E ratio of 31.40, a PEG ratio of 2.23 and a beta of 0.99. The company's 50-day simple moving average is $110.28 and its 200 day simple moving average is $109.88. Cisco Systems, Inc. has a twelve month low of $70.06 and a twelve month high of $130.37. The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.17 by $0.05. The firm had revenue of $17.25 billion during the quarter, compared to analyst estimates of $16.84 billion. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The company's quarterly revenue was up 17.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.99 earnings per share. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. As a group, research analysts forecast that Cisco Systems, Inc. will post 4.42 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd were paid a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a yield of 1.6%. The ex-dividend date was Friday, October 2nd. Cisco Systems's dividend payout ratio is currently 50.30%.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on CSCO. Barclays boosted their price objective on Cisco Systems from $121.00 to $123.00 and gave the stock an "equal weight" rating in a research report on Thursday, August 13th. Wells Fargo & Company raised their target price on Cisco Systems from $130.00 to $150.00 and gave the company an "overweight" rating in a report on Thursday, August 13th. KeyCorp lifted their price target on Cisco Systems from $130.00 to $135.00 and gave the stock an "overweight" rating in a research report on Thursday, August 13th. Piper Sandler cut their price target on Cisco Systems from $132.00 to $125.00 and set a "neutral" rating for the company in a report on Tuesday, September 22nd. Finally, Truist Financial increased their target price on shares of Cisco Systems from $125.00 to $140.00 and gave the company a "buy" rating in a research note on Thursday, August 13th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, Cisco Systems currently has an average rating of "Moderate Buy" and a consensus target price of $128.52.

Cisco Systems Profile

Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration and observability solutions for businesses, government organizations and service providers. Its offerings include routers, switches, wireless networking equipment, data-center infrastructure, security software and services, as well as technologies that support cloud and hybrid IT environments.

The company also provides collaboration tools through its Webex portfolio, cloud-managed networking through Cisco Meraki and security and observability capabilities that include technologies from Splunk, which Cisco acquired in 2024.

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