AEGON ASSET MANAGEMENT UK Plc Sells 42,009 Shares of Cisco Systems, Inc. $CSCO

Key Points

• AEGON Asset Management UK cut its Cisco stake by 5.5%, selling 42,009 shares in the third quarter; it retained 726,323 shares valued at about $78.2 million.
• Cisco reported quarterly EPS of $1.22, beating the $1.17 consensus, and revenue of $17.25 billion, up 17.6% year over year.
• Analyst views are mixed: Morgan Stanley downgraded Cisco to Equal-weight, while the overall consensus remains “Moderate Buy,” with an average price target of $127.87.

AEGON ASSET MANAGEMENT UK Plc trimmed its position in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 5.5% during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 726,323 shares of the network equipment provider's stock after selling 42,009 shares during the quarter. AEGON ASSET MANAGEMENT UK Plc's holdings in Cisco Systems were worth $78,174,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also modified their holdings of the company. Manning & Napier Advisors LLC grew its stake in shares of Cisco Systems by 137.0% in the first quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider's stock valued at $27,000 after buying an additional 200 shares in the last quarter. Halbert Hargrove Global Advisors LLC boosted its holdings in Cisco Systems by 142.5% in the 3rd quarter. Halbert Hargrove Global Advisors LLC now owns 257 shares of the network equipment provider's stock worth $28,000 after acquiring an additional 151 shares during the period. Kings Path Partners LLC purchased a new position in Cisco Systems in the 3rd quarter worth approximately $31,000. Blueline Advisors LLC purchased a new position in Cisco Systems in the 3rd quarter worth approximately $32,000. Finally, RMG Wealth Management LLC grew its position in Cisco Systems by 308.7% in the first quarter. RMG Wealth Management LLC now owns 425 shares of the network equipment provider's stock valued at $33,000 after acquiring an additional 321 shares in the last quarter. 73.33% of the stock is owned by institutional investors and hedge funds.

Cisco Systems Price Performance

Shares of CSCO stock opened at $98.65 on Tuesday. The firm has a fifty day moving average of $108.59 and a two-hundred day moving average of $101.75. The firm has a market cap of $388.94 billion, a P/E ratio of 28.23, a P/E/G ratio of 2.16 and a beta of 1.01. Cisco Systems, Inc. has a 1-year low of $71.10 and a 1-year high of $130.37. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.93 and a quick ratio of 0.79.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its 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. The business had revenue of $17.25 billion for 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 revenue for the quarter was up 17.6% on a year-over-year basis. During the same quarter in the prior 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, research analysts anticipate that Cisco Systems, Inc. will post 4.42 earnings per share for the current fiscal year.

Cisco Systems Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd were issued a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend was Friday, October 2nd. Cisco Systems's dividend payout ratio (DPR) is currently 50.30%.

Insider Activity at Cisco Systems

In related news, EVP Deborah L. Stahlkopf sold 6,487 shares of the company's stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $111.53, for a total transaction of $723,495.11. Following the sale, the executive vice president directly owned 167,116 shares of the company's stock, valued at approximately $18,638,447.48. This represents a 3.74% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeetendra I. Patel sold 7,170 shares of the firm's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $111.57, for a total value of $799,956.90. Following the transaction, the insider owned 230,593 shares in the company, valued at $25,727,261.01. This trade represents a 3.02% decrease in their ownership of the stock. 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 a total of 44,869 shares of company stock worth $5,005,620 over the last quarter. 0.01% of the stock is owned by corporate insiders.

Cisco Systems News Summary

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

• Positive Sentiment: Cisco is expanding its AI-security tools: AI Defense will use Anthropic’s Claude Mythos for adversarial testing of AI applications and agents, alongside new Splunk Agent Observability and Cisco IQ capabilities. The launch could strengthen Cisco’s position as businesses seek ways to secure and monitor AI agents. Cisco AI security announcement
• Positive Sentiment: One analysis suggests Cisco shares could be undervalued by about 15%, offering a potential valuation argument for investors. Cisco valuation analysis
• Neutral Sentiment: The November 12 earnings report is the main near-term catalyst. Investors will look for evidence that AI infrastructure demand supports Cisco’s growth and its stated $7.5 billion AI target; options trading points to expectations of a potentially large post-earnings move. Cisco earnings and options outlook
• Negative Sentiment: Risk appetite remains a headwind: reports cite a roughly 20% decline in CSCO and a $145 billion loss in market value from its peak, while ETFs were net sellers of $64.1 million in shares on November 5. ETF flows for Cisco
• Negative Sentiment: A Morgan Stanley analyst reportedly moved Cisco to Equal-weight, adding to caution ahead of results. Investors may also be wary if earnings fail to reassure the market about AI-related demand. Cisco earnings expectations and AI concerns

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on CSCO shares. Piper Sandler dropped their price objective on shares of Cisco Systems from $132.00 to $125.00 and set a "neutral" rating on the stock in a research note on Tuesday, September 22nd. Sanford C. Bernstein initiated coverage on shares of Cisco Systems in a research note on Wednesday, September 30th. They issued a "market perform" rating and a $110.00 target price for the company. Morgan Stanley lowered shares of Cisco Systems from an "overweight" rating to an "equal weight" rating and lowered their price target for the company from $135.00 to $120.00 in a report on Thursday, November 5th. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Cisco Systems in a report on Tuesday, September 1st. They issued a "buy" rating and a $135.00 price objective on the stock. Finally, Barclays upped their price objective on shares of Cisco Systems from $121.00 to $123.00 and gave the company an "equal weight" rating in a research report on Thursday, August 13th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, Cisco Systems has a consensus rating of "Moderate Buy" and an average target price of $127.87.

Cisco Systems Profile

Cisco Systems, Inc develops networking, cybersecurity, collaboration and observability technologies for businesses, governments and other organizations. Its products include routers, switches, wireless systems and data center infrastructure, along with security software and services that help organizations connect and protect their networks.

The company also provides collaboration tools through its Webex platform and observability capabilities through its software offerings, including technology from Splunk, which Cisco acquired in 2024.

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