1ST Source Bank Buys Shares of 76,493 Cisco Systems, Inc. $CSCO

Key Points

• 1ST Source Bank purchased 76,493 Cisco shares during the second quarter, valued at approximately $8.99 million and representing 0.4% of the bank’s portfolio. Institutional investors collectively own 73.33% of Cisco’s stock.
• Cisco reported quarterly revenue of $17.25 billion and adjusted EPS of $1.22, exceeding analyst expectations, with revenue up 17.6% year over year. The company also announced a quarterly dividend of $0.42 per share, equating to a 1.5% annualized yield.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $129.43. However, investors remain focused on whether AI-driven growth can offset margin pressure from lower-margin infrastructure hardware.

1ST Source Bank purchased a new stake in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor purchased 76,493 shares of the network equipment provider's stock, valued at approximately $8,985,000. Cisco Systems accounts for approximately 0.4% of 1ST Source Bank's holdings, making the stock its 26th largest position.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Bridgewater Advisors Inc. purchased a new position in Cisco Systems in the 2nd quarter valued at approximately $6,442,000. World Investment Advisors increased its position in shares of Cisco Systems by 15.4% during the fourth quarter. World Investment Advisors now owns 198,549 shares of the network equipment provider's stock worth $13,905,000 after acquiring an additional 26,455 shares during the period. WCG Wealth Advisors LLC raised its stake in shares of Cisco Systems by 101.8% in the fourth quarter. WCG Wealth Advisors LLC now owns 107,306 shares of the network equipment provider's stock valued at $8,266,000 after acquiring an additional 54,141 shares in the last quarter. Vise Technologies Inc. boosted its holdings in Cisco Systems by 47.1% in the fourth quarter. Vise Technologies Inc. now owns 200,341 shares of the network equipment provider's stock valued at $15,432,000 after purchasing an additional 64,144 shares during the period. Finally, Western Wealth Management LLC boosted its holdings in Cisco Systems by 60.5% in the first quarter. Western Wealth Management LLC now owns 76,372 shares of the network equipment provider's stock valued at $5,926,000 after purchasing an additional 28,792 shares during the period. Institutional investors and hedge funds own 73.33% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have weighed in on CSCO shares. JPMorgan Chase & Co. upped their price target on Cisco Systems from $95.00 to $96.00 in a report on Monday, May 11th. Bank of America lifted their price target on shares of Cisco Systems from $135.00 to $150.00 and gave the stock a "buy" rating in a research note on Monday, June 8th. Evercore boosted their price target on shares of Cisco Systems from $110.00 to $150.00 and gave the stock an "outperform" rating in a report on Thursday, May 14th. Argus raised their price objective on shares of Cisco Systems from $100.00 to $150.00 and gave the company a "buy" rating in a report on Tuesday, May 19th. Finally, UBS Group lifted their price objective on shares of Cisco Systems from $132.00 to $138.00 and gave the stock a "buy" rating in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $129.43.

Cisco Systems Price Performance

Shares of NASDAQ CSCO opened at $111.68 on Monday. The stock's 50-day simple moving average is $117.03 and its 200-day simple moving average is $99.24. The firm has a market capitalization of $440.18 billion, a PE ratio of 33.44, a price-to-earnings-growth ratio of 2.38 and a beta of 1.02. Cisco Systems, Inc. has a fifty-two week low of $65.75 and a fifty-two week high of $130.37. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.79 and a current ratio of 0.93.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last announced its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.17 by $0.05. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%.The firm had revenue of $17.25 billion during the quarter, compared to the consensus estimate of $16.84 billion. During the same period in the prior year, the company posted $0.99 earnings per share. The firm's quarterly revenue was up 17.6% compared to the same quarter last year. 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, equities research analysts forecast that Cisco Systems, Inc. will post 4.09 EPS for the current fiscal year.

Cisco Systems Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 21st. Investors of record on Friday, October 2nd will be given a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, October 2nd. Cisco Systems's dividend payout ratio (DPR) is 50.30%.

Insider Buying and Selling

In other Cisco Systems news, EVP Thimaya K. Subaiya sold 7,127 shares of the firm's stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $119.91, for a total transaction of $854,598.57. Following the transaction, the executive vice president owned 140,857 shares of the company's stock, valued at approximately $16,890,162.87. This trade represents a 4.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,400 shares of the firm's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $120.03, for a total value of $2,568,642.00. Following the transaction, the chief executive officer directly owned 637,085 shares in the company, valued at approximately $76,469,312.55. The trade was a 3.25% 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. Insiders have sold 31,134 shares of company stock worth $3,739,000 in the last ninety days. 0.01% of the stock is owned by corporate insiders.

Key Cisco Systems News

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

• Positive Sentiment: AI demand is accelerating. Cisco reported fiscal Q4 revenue of approximately $17.3 billion, up 18% year over year, and adjusted EPS of $1.22 versus the $1.17 consensus estimate. AI infrastructure orders increased 4.5 times to $9.3 billion for fiscal 2026, while management expects approximately $7.5 billion of hyperscaler AI infrastructure revenue in fiscal 2027. Chuck Robbins Says AI Is Fueling a Networking Supercycle
• Positive Sentiment: Fiscal 2027 guidance exceeded expectations. Management forecast roughly 15% revenue growth, supported by hyperscaler spending, data-center switching and broader networking upgrades. Several firms—including UBS, Truist, Wells Fargo, KeyCorp, Morgan Stanley and Rosenblatt—raised their price targets and maintained bullish ratings, suggesting long-term upside if the AI networking cycle continues. Cisco Just Gave Investors Three Big Reasons to Be Bullish
• Neutral Sentiment: The market is demanding faster growth. Despite the earnings beat and upbeat outlook, Cisco’s shares have decreased because expectations were already elevated after a substantial rally. Investors are questioning whether the company’s AI momentum can remain strong beyond the current infrastructure buildout and whether Cisco’s premium valuation is justified. Cisco Shares Slide Despite Earnings Beat and Strong Guidance
• Negative Sentiment: Margin pressure is the primary concern. AI infrastructure growth is arriving mainly through lower-margin hardware, creating mix-related gross-margin compression and raising questions about how profitably Cisco can scale orders. HSBC downgraded CSCO to Hold from Buy and reduced its price target to $120 from $137, citing a lack of near-term catalysts even after the strong quarter. Cisco Beat on Every Line, Then Fell on What AI Costs to Ship

About Cisco Systems

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.

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