Bank of America Corp DE Invests $5.89 Billion in Cisco Systems, Inc. $CSCO

Key Points

• Bank of America acquired 50.16 million Cisco shares in the second quarter, worth approximately $5.89 billion and representing about 1.27% of the company. Institutional investors collectively own 73.33% of Cisco.
• Cisco exceeded quarterly expectations, reporting $1.22 in EPS and $17.25 billion in revenue, with revenue up 17.6% year over year. The company also raised its fiscal 2027 outlook and declared a quarterly dividend of $0.42 per share, yielding about 1.5% annually.
• Analyst sentiment remains positive but mixed: Cisco has a consensus “Moderate Buy” rating and a $129.68 target price, while some firms recently upgraded their targets and others downgraded the stock to “Hold.”

Bank of America Corp DE bought a new stake in shares of Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 50,164,984 shares of the network equipment provider's stock, valued at approximately $5,892,379,000. Bank of America Corp DE owned approximately 1.27% of Cisco Systems at the end of the most recent quarter.

Other institutional investors have also recently added to or reduced their stakes in the company. Intesa Sanpaolo Wealth Management acquired a new position in Cisco Systems during the 4th quarter worth approximately $25,000. MidAtlantic Capital Management Inc. purchased a new stake in shares of Cisco Systems during the fourth quarter valued at approximately $25,000. Networth Advisors LLC raised its stake in shares of Cisco Systems by 276.4% during the first quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider's stock valued at $26,000 after purchasing an additional 246 shares during the period. Manning & Napier Advisors LLC lifted its position in shares of Cisco Systems by 137.0% during the first quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider's stock worth $27,000 after purchasing an additional 200 shares in the last quarter. Finally, Financial Life Planners acquired a new stake in Cisco Systems during the 1st quarter valued at $27,000. 73.33% of the stock is owned by hedge funds and other institutional investors.

Cisco Systems Stock Performance

Shares of CSCO stock opened at $112.13 on Monday. The stock has a market capitalization of $442.08 billion, a price-to-earnings ratio of 33.57, a PEG ratio of 2.34 and a beta of 1.00. Cisco Systems, Inc. has a one year low of $66.13 and a one year high of $130.37. The company's 50-day simple moving average is $113.66 and its 200-day simple moving average is $103.48. 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 data on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate 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 for the quarter, compared to analysts' expectations of $16.84 billion. During the same quarter in the prior year, the firm posted $0.99 earnings per share. Cisco Systems's revenue for the quarter 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. Equities analysts anticipate that Cisco Systems, Inc. will post 4.43 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

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

More Cisco Systems News

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

• Positive Sentiment: Investors also responded to Cisco’s recent commentary on AI networking, including meaningful hyperscaler orders, a networking refresh cycle and growing demand for high-performance infrastructure. Cisco’s latest quarterly results showed record revenue, earnings above guidance and 35% growth in total product orders, while management raised fiscal 2027 expectations. Cisco Systems rises as investors weigh upbeat AI networking commentary and a broader tech rally
• Positive Sentiment: A broader technology-sector rally, supported by an inflation reading near expectations and lower oil prices, provided an additional tailwind for CSCO and other networking stocks. Ciena, Arista Networks and Cisco market move
• Positive Sentiment: Cisco and Infleqtion announced joint research into networked quantum technology, aiming to connect and scale distributed quantum systems. The opportunity is longer term and is unlikely to materially affect near-term revenue, but it supports Cisco’s technology-development narrative. Infleqtion and Cisco announce collaboration to advance networked quantum technology

Analyst Ratings Changes

A number of equities analysts have commented on CSCO shares. Wall Street Zen lowered shares of Cisco Systems from a "buy" rating to a "hold" rating in a report on Saturday. KeyCorp boosted their price target on Cisco Systems from $130.00 to $135.00 and gave the stock an "overweight" rating in a research note on Thursday, August 13th. Morgan Stanley increased their price target on Cisco Systems from $130.00 to $135.00 and gave the company an "overweight" rating in a report on Thursday, August 13th. Freedom Capital upgraded Cisco Systems from a "hold" rating to a "strong-buy" rating in a report on Sunday, August 16th. Finally, Zacks Research lowered Cisco Systems from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 4th. Two analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $129.68.

Insider Buying and Selling

In related news, EVP Thimaya K. Subaiya sold 7,127 shares of the business's stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $119.91, for a total value of $854,598.57. Following the completion of the sale, the executive vice president directly owned 140,857 shares in the company, valued at approximately $16,890,162.87. The trade was a 4.82% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,628 shares of the company's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $111.54, for a total transaction of $2,412,387.12. Following the sale, the chief executive officer directly owned 602,710 shares of the company's stock, valued at approximately $67,226,273.40. This represents a 3.46% decrease in their ownership of the stock. 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. Insiders have sold 51,004 shares of company stock valued at $5,750,920 in the last three months. Insiders own 0.01% of the company's stock.

Cisco Systems Profile

Cisco Systems, Inc is a global technology company that provides networking, cybersecurity, collaboration, observability and other information technology solutions. Its offerings include routers, switches, wireless networking equipment, data center infrastructure, security platforms, unified communications tools and software designed to help organizations connect, manage and protect their digital environments.

Cisco serves businesses, government agencies, educational institutions, telecommunications providers and other organizations worldwide.

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