Abbot Financial Management Inc. Makes New Investment in Cisco Systems, Inc. $CSCO

Key Points

• Abbot Financial Management acquired 62,086 Cisco shares worth approximately $7.3 million in the second quarter, making Cisco 2.5% of the fund’s portfolio. Institutional investors and hedge funds collectively own 73.33% of the company.
• Cisco beat quarterly expectations with adjusted EPS of $1.22 and revenue of $17.25 billion, while revenue rose 17.6% year over year. Management issued fiscal 2027 EPS guidance of $5.05 to $5.11.
• Cisco declared a quarterly dividend of $0.42 per share, equivalent to a $1.68 annualized payout and a 1.5% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $129.43, although concerns remain about valuation and margin pressure from lower-margin AI infrastructure hardware.

Abbot Financial Management Inc. acquired a new stake in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund acquired 62,086 shares of the network equipment provider's stock, valued at approximately $7,293,000. Cisco Systems comprises 2.5% of Abbot Financial Management Inc.'s holdings, making the stock its 9th biggest position.

Several other large investors have also modified their holdings of the company. Norges Bank acquired a new position in shares of Cisco Systems in the 4th quarter valued at $4,473,272,000. Auto Owners Insurance Co boosted its stake in Cisco Systems by 8,718.3% during the 4th quarter. Auto Owners Insurance Co now owns 51,952,421 shares of the network equipment provider's stock worth $400,190,000 after purchasing an additional 51,363,281 shares during the period. Bank of New York Mellon Corp purchased a new position in Cisco Systems during the 2nd quarter worth $4,714,574,000. Price T Rowe Associates Inc. MD grew its position in Cisco Systems by 103.2% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 29,289,151 shares of the network equipment provider's stock worth $2,256,144,000 after purchasing an additional 14,874,407 shares during the last quarter. Finally, Franklin Resources Inc. increased its stake in Cisco Systems by 18.0% in the fourth quarter. Franklin Resources Inc. now owns 50,320,905 shares of the network equipment provider's stock valued at $3,876,219,000 after purchasing an additional 7,679,422 shares during the period. 73.33% of the stock is owned by institutional investors and hedge funds.

Cisco Systems Price Performance

Shares of NASDAQ:CSCO opened at $111.68 on Monday. The firm has a market capitalization of $440.18 billion, a price-to-earnings ratio of 33.44, a price-to-earnings-growth ratio of 2.38 and a beta of 1.02. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.93 and a quick ratio of 0.79. The business's 50 day simple moving average is $117.03 and its 200-day simple moving average is $99.24. Cisco Systems, Inc. has a 12 month low of $65.75 and a 12 month high of $130.37.

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

Cisco Systems Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 21st. Stockholders of record on Friday, October 2nd will be paid a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, October 2nd. Cisco Systems's payout ratio is 50.30%.

Insider Buying and Selling

In other Cisco Systems news, EVP Oliver Tuszik sold 2,607 shares of Cisco Systems stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $121.12, for a total transaction of $315,759.84. Following the completion of the transaction, the executive vice president owned 172,727 shares in the company, valued at approximately $20,920,694.24. The trade was a 1.49% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 7,127 shares of the company's stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $119.91, for a total transaction of $854,598.57. Following the completion of the sale, the executive vice president directly owned 140,857 shares in the company, valued at $16,890,162.87. This trade represents a 4.82% 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 three months. Corporate insiders own 0.01% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the stock. Morgan Stanley increased their target price on shares of Cisco Systems from $130.00 to $135.00 and gave the stock an "overweight" rating in a research note on Thursday. Evercore upped their price objective on Cisco Systems from $110.00 to $150.00 and gave the company an "outperform" rating in a research note on Thursday, May 14th. UBS Group increased their price objective on Cisco Systems from $132.00 to $138.00 and gave the stock a "buy" rating in a research report on Thursday. BNP Paribas Exane lifted their target price on Cisco Systems from $87.00 to $132.00 and gave the company an "outperform" rating in a research note on Thursday, May 14th. Finally, Truist Financial boosted their target price on Cisco Systems from $125.00 to $140.00 and gave the company a "buy" rating in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $129.43.

Key Stories Impacting Cisco Systems

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

Cisco Systems Profile

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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