Beacon Pointe Advisors LLC Acquires New Position in Cisco Systems, Inc. $CSCO

Key Points

• Beacon Pointe Advisors acquired 510,885 Cisco shares worth approximately $60 million in the second quarter, while institutional investors collectively own 73.33% of the company.
• Analysts maintain a bullish outlook, with Cisco receiving a “Moderate Buy” consensus rating and an average price target of $129.43. Recent results also exceeded expectations, with revenue up 17.6% year over year and EPS beating estimates.
• Cisco announced a quarterly dividend of $0.42 per share, equivalent to $1.68 annually and a 1.5% yield; however, insider selling and valuation concerns remain potential risks.

Beacon Pointe Advisors LLC bought a new position in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 510,885 shares of the network equipment provider's stock, valued at approximately $60,009,000.

Several other large investors have also added to or reduced their stakes in CSCO. Cozad Asset Management Inc. increased its stake in shares of Cisco Systems by 0.3% in the first quarter. Cozad Asset Management Inc. now owns 26,203 shares of the network equipment provider's stock worth $2,033,000 after purchasing an additional 87 shares in the last quarter. Dogwood Wealth Management LLC lifted its stake in shares of Cisco Systems by 3.9% during the 2nd quarter. Dogwood Wealth Management LLC now owns 2,413 shares of the network equipment provider's stock valued at $283,000 after buying an additional 90 shares in the last quarter. August Group Capital Ltd boosted its holdings in Cisco Systems by 2.0% in the 2nd quarter. August Group Capital Ltd now owns 4,723 shares of the network equipment provider's stock worth $555,000 after buying an additional 91 shares during the period. Financial Insights Inc. increased its stake in Cisco Systems by 1.5% in the 1st quarter. Financial Insights Inc. now owns 6,220 shares of the network equipment provider's stock worth $483,000 after buying an additional 92 shares in the last quarter. Finally, CPA Asset Management Group LLC increased its stake in Cisco Systems by 1.8% in the 2nd quarter. CPA Asset Management Group LLC now owns 5,335 shares of the network equipment provider's stock worth $627,000 after buying an additional 93 shares in the last quarter. Hedge funds and other institutional investors own 73.33% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the company. JPMorgan Chase & Co. boosted their price objective on Cisco Systems from $95.00 to $96.00 in a research report on Monday, May 11th. Freedom Capital upgraded Cisco Systems from a "hold" rating to a "strong-buy" rating in a research report on Sunday, August 16th. Morgan Stanley boosted their price target on Cisco Systems from $130.00 to $135.00 and gave the stock an "overweight" rating in a report on Thursday, August 13th. Argus upped their price target on Cisco Systems from $100.00 to $150.00 and gave the stock a "buy" rating in a research note on Tuesday, May 19th. Finally, KeyCorp increased their price objective on shares of Cisco Systems from $130.00 to $135.00 and gave the company an "overweight" rating in a report on Thursday, August 13th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, Cisco Systems has a consensus rating of "Moderate Buy" and a consensus target price of $129.43.

Cisco Systems Price Performance

Shares of CSCO opened at $109.93 on Friday. The company has a 50 day moving average of $115.21 and a two-hundred day moving average of $101.24. The company has a market cap of $433.28 billion, a price-to-earnings ratio of 32.91, a price-to-earnings-growth ratio of 2.20 and a beta of 1.02. The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39. Cisco Systems, Inc. has a twelve month low of $66.13 and a twelve month high of $130.37.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last announced its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share for the quarter, topping 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 the consensus estimate of $16.84 billion. During the same period in the previous year, the business earned $0.99 EPS. The firm's revenue for the quarter was up 17.6% on a year-over-year basis. 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, analysts predict that Cisco Systems, Inc. will post 4.44 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

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

Key Stories Impacting Cisco Systems

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

• Positive Sentiment: Cisco launched a Sovereign Critical Infrastructure portfolio in Canada and expanded its Secure AI Factory with NVIDIA and Supermicro. The offerings target enterprises, neocloud providers and sovereign-cloud customers seeking integrated AI compute, cooling and networking infrastructure. Cisco Unveils Sovereign and AI Infrastructure Offerings
• Positive Sentiment: Morgan Stanley maintained a $135 price target, citing Cisco’s potential supply advantage through TSMC as shortages continue to affect the AI infrastructure market. This supports the view that Cisco may be positioned to benefit from strong AI networking demand. Morgan Stanley Reveals Cisco’s Supply Edge
• Positive Sentiment: Cisco’s NVIDIA partnership is also linked to the industry’s shift toward liquid-cooled, high-density AI systems, potentially expanding the company’s role in the broader AI infrastructure buildout. NVIDIA’s AI Chips and Liquid Cooling
• Positive Sentiment: Analysts comparing Cisco with Hewlett Packard Enterprise highlighted Cisco’s strong hyperscaler AI orders, networking growth and expanding security business as long-term competitive advantages. HPE vs. CSCO
• Neutral Sentiment: Cisco gave all approximately 90,000 employees access to personal AI agents, demonstrating broad internal adoption of AI, though the immediate financial impact is unclear. Cisco Gives Employees AI Agents
• Negative Sentiment: A growth-stock analysis questioned whether Cisco can sustain enough growth to support its premium valuation, reviving concerns that enthusiasm surrounding AI networking may have outpaced underlying fundamentals. With a P/E ratio above 30, the stock may be particularly sensitive to any slowdown in growth expectations. Growth Stock Analysis

Insider Transactions at Cisco Systems

In other news, EVP Oliver Tuszik sold 2,760 shares of the company's stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $112.46, for a total transaction of $310,389.60. Following the completion of the transaction, the executive vice president directly owned 165,276 shares of the company's stock, valued at $18,586,938.96. This represents a 1.64% decrease in their position. The sale was disclosed in a filing with the SEC, 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 business's stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $111.54, for a total value of $2,412,387.12. Following the sale, the chief executive officer owned 602,710 shares of the company's stock, valued at approximately $67,226,273.40. This trade represents a 3.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 53,611 shares of company stock valued at $6,066,680. 0.01% of the stock is owned by company insiders.

Cisco Systems Company 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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