Applied Finance Capital Management LLC Cuts Stake in Cisco Systems, Inc. $CSCO

Key Points

• Applied Finance Capital Management cut its Cisco stake by 10.3% in the first quarter, selling 52,797 shares and leaving it with 459,371 shares worth about $35.6 million.
• Wall Street sentiment on Cisco remains positive, with several analysts raising price targets; the stock now carries a consensus rating of “Moderate Buy” and an average price target of $123.14.
• Cisco’s latest results showed solid operating momentum, as it beat earnings and revenue estimates, raised guidance, and also announced a quarterly dividend of $0.42 per share payable July 22.

Applied Finance Capital Management LLC decreased its stake in shares of Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 10.3% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 459,371 shares of the network equipment provider's stock after selling 52,797 shares during the period. Cisco Systems makes up about 2.7% of Applied Finance Capital Management LLC's investment portfolio, making the stock its 7th largest holding. Applied Finance Capital Management LLC's holdings in Cisco Systems were worth $35,643,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also added to or reduced their stakes in the stock. Norges Bank acquired a new position in shares of Cisco Systems during the fourth quarter worth about $4,473,272,000. Auto Owners Insurance Co lifted its position in shares of Cisco Systems by 8,718.3% in the fourth 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 in the last quarter. Price T Rowe Associates Inc. MD increased its stake in Cisco Systems by 103.2% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 29,289,151 shares of the network equipment provider's stock valued at $2,256,144,000 after buying an additional 14,874,407 shares during the last quarter. Franklin Resources Inc. lifted its position in Cisco Systems by 18.0% during the 4th quarter. Franklin Resources Inc. now owns 50,320,905 shares of the network equipment provider's stock worth $3,876,219,000 after buying an additional 7,679,422 shares in the last quarter. Finally, Invesco Ltd. boosted its stake in shares of Cisco Systems by 11.6% during the 4th quarter. Invesco Ltd. now owns 59,836,782 shares of the network equipment provider's stock worth $4,609,227,000 after buying an additional 6,224,062 shares during the last quarter. 73.33% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several analysts recently issued reports on the company. Wells Fargo & Company upped their target price on Cisco Systems from $95.00 to $130.00 and gave the stock an "overweight" rating in a report on Thursday, May 14th. New Street Research boosted their target price on shares of Cisco Systems from $82.00 to $122.00 and gave the stock a "neutral" rating in a report on Thursday, May 14th. Argus raised their target price on shares of Cisco Systems from $100.00 to $150.00 and gave the company a "buy" rating in a research note on Tuesday, May 19th. Zacks Research raised Cisco Systems from a "hold" rating to a "strong-buy" rating in a report on Tuesday, June 30th. Finally, CICC Research increased their price target on Cisco Systems from $96.00 to $125.00 and gave the company an "outperform" rating in a research note on Monday, May 18th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $123.14.

Cisco Systems Stock Performance

CSCO stock opened at $121.31 on Monday. Cisco Systems, Inc. has a 52 week low of $65.75 and a 52 week high of $130.37. The company has a market capitalization of $478.14 billion, a PE ratio of 39.39, a price-to-earnings-growth ratio of 3.09 and a beta of 1.02. The company's 50-day simple moving average is $115.32 and its 200 day simple moving average is $92.18. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.81 and a current ratio of 0.92.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last announced its earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.03 by $0.03. The firm had revenue of $15.84 billion for the quarter, compared to analyst estimates of $15.56 billion. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The business's revenue was up 12.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.96 EPS. Cisco Systems has set its Q4 2026 guidance at 1.160-1.180 EPS and its FY 2026 guidance at 4.270-4.290 EPS. As a group, sell-side analysts anticipate that Cisco Systems, Inc. will post 3.54 earnings per share for the current year.

Cisco Systems Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 22nd. Investors of record on Monday, July 6th will be given a dividend of $0.42 per share. The ex-dividend date of this dividend is Monday, July 6th. This represents a $1.68 annualized dividend and a yield of 1.4%. Cisco Systems's dividend payout ratio is currently 54.55%.

Insider Transactions at Cisco Systems

In other news, insider Jeetendra I. Patel sold 7,169 shares of the business's stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $117.28, for a total value of $840,780.32. Following the completion of the transaction, the insider directly owned 246,737 shares in the company, valued at approximately $28,937,315.36. The trade was a 2.82% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,761 shares of the company's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $114.61, for a total transaction of $316,438.21. Following the sale, the executive vice president directly owned 180,877 shares of the company's stock, valued at approximately $20,730,312.97. This trade represents a 1.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 47,650 shares of company stock worth $5,668,823. Corporate insiders own 0.01% of the company's stock.

Cisco Systems News Roundup

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

• Positive Sentiment: Cisco was highlighted as an AI infrastructure leader, with its networking, optics, Splunk, and hyperscaler exposure seen as key drivers of stronger long-term demand. Cisco, IBD Stock Of The Day, Went From Slow-Growth Tech Icon To AI Infrastructure Leader
• Positive Sentiment: Zacks included CSCO among cloud computing stocks positioned to benefit from AI-driven data-center growth in the second half of 2026, supporting the stock’s bull case. 5 Cloud Computing Stocks to Buy for 2H 2026 as Digital Demand Soars
• Positive Sentiment: Cisco landed a $230 million Army-related role, adding another sign of demand for its networking and security offerings. Cisco (CSCO) Lands $230 Million Army Role And Backs AP Cybersecurity Course
• Positive Sentiment: Cisco also partnered with the College Board to launch a new AP Cybersecurity course, which could help strengthen its long-term brand in cybersecurity education and talent development. Cisco (CSCO) Partners With College Board to Launch AP Cybersecurity Course
• Neutral Sentiment: A data-center infrastructure market report named Cisco among industry participants benefiting from AI adoption and cloud expansion, but this was more of an industry overview than a company-specific catalyst. Data Center Infrastructure Management (DCIM) Software Market Report Published; Profiles Schneider Electric, Vertiv, IBM, Cisco, HPE & 10 Others
• Neutral Sentiment: One note said short interest in Cisco increased in July, but the figures reported zero shares on both dates, so it does not appear to be a meaningful trading signal.

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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