Caisse de depot et placement du Quebec Cuts Stock Position in Cisco Systems, Inc. $CSCO

Key Points

• Caisse de dépôt et placement du Québec reduced its Cisco stake by 15.3% in the second quarter, selling 850,191 shares and retaining 4.71 million shares valued at approximately $553.5 million. Institutional investors collectively own 73.33% of Cisco.
• Cisco exceeded quarterly expectations with $1.22 in EPS and $17.25 billion in revenue, while revenue rose 17.6% year over year. The company also issued fiscal 2027 guidance and continues expanding its AI infrastructure partnerships.
• Cisco declared a quarterly dividend of $0.42 per share, representing a $1.68 annualized payout and a 1.5% yield. Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $129.43.

Caisse de depot et placement du Quebec cut its position in shares of Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 15.3% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 4,711,992 shares of the network equipment provider's stock after selling 850,191 shares during the quarter. Cisco Systems makes up about 0.8% of Caisse de depot et placement du Quebec's investment portfolio, making the stock its 28th largest position. Caisse de depot et placement du Quebec owned 0.12% of Cisco Systems worth $553,471,000 at the end of the most recent reporting period.

Other hedge funds also recently bought and sold shares of the company. Pointe Capital Management LLC boosted its stake in Cisco Systems by 2.6% in the second quarter. Pointe Capital Management LLC now owns 13,048 shares of the network equipment provider's stock worth $1,533,000 after buying an additional 325 shares in the last quarter. Lotus Technology Management LP bought a new stake in shares of Cisco Systems in the 2nd quarter worth approximately $1,113,000. First Bancorp Inc ME lifted its holdings in shares of Cisco Systems by 10.8% in the 2nd quarter. First Bancorp Inc ME now owns 10,159 shares of the network equipment provider's stock worth $1,193,000 after acquiring an additional 994 shares during the last quarter. Jupiter Topco LLC purchased a new stake in shares of Cisco Systems in the 2nd quarter valued at $228,476,000. Finally, J. Goldman & Co LP bought a new position in shares of Cisco Systems during the 2nd quarter valued at $348,000. Institutional investors own 73.33% of the company's stock.

Insider Transactions at Cisco Systems

In other news, EVP Oliver Tuszik sold 2,760 shares of the business'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 transaction, the executive vice president directly owned 165,276 shares of the company's stock, valued at approximately $18,586,938.96. The trade was a 1.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 5,832 shares of the company's stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $111.47, for a total value of $650,093.04. Following the transaction, the executive vice president owned 128,382 shares of the company's stock, valued at approximately $14,310,741.54. This represents a 4.35% 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. In the last quarter, insiders sold 53,611 shares of company stock worth $6,066,680. Corporate insiders own 0.01% of the company's stock.

Cisco Systems Price Performance

Shares of Cisco Systems stock opened at $111.11 on Wednesday. The company's fifty day simple moving average is $115.65 and its two-hundred day simple moving average is $100.78. Cisco Systems, Inc. has a 12-month low of $66.13 and a 12-month high of $130.37. The firm has a market cap of $437.93 billion, a PE ratio of 33.27, a price-to-earnings-growth ratio of 2.16 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 (NASDAQ:CSCO - Get Free Report) last issued its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 EPS 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 net margin of 20.95% and a return on equity of 30.16%. The company's quarterly revenue was up 17.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.99 earnings per share. 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 expect that Cisco Systems, Inc. will post 4.44 EPS for the current year.

Cisco Systems Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd will be issued 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 dividend payout ratio (DPR) is 50.30%.

Cisco Systems News Roundup

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

• Positive Sentiment: Expanded NVIDIA and Supermicro partnership: Cisco is adding Supermicro NASDAQ: SMCI rack-scale AI servers to its NVIDIA-backed Secure AI Factory offering. The combined architecture pairs Cisco networking and security with high-performance computing, potentially helping Cisco capture more spending from hyperscalers, neoclouds, sovereign clouds and enterprise AI deployments. Cisco Expands Secure AI Factory with NVIDIA for the Rack-Scale Era
• Positive Sentiment: AI infrastructure demand is broadening: Cisco’s expanded offering is designed to address the power, cooling, security and data-control requirements of increasingly demanding AI workloads. The initiative may increase Cisco’s content per deployment and make its products more relevant as customers seek integrated, quickly deployable systems. Exclusive: Cisco expands Nvidia partnership for AI data center boom
• Positive Sentiment: Supportive analyst sentiment: Cisco’s average brokerage recommendation remains bullish, while recent coverage points to strong AI-related orders and upbeat fiscal 2027 infrastructure revenue guidance. This follows the company’s latest earnings beat and could reinforce confidence in its growth outlook. Wall Street Bulls Look Optimistic About Cisco
• Neutral Sentiment: New Canadian offering: Cisco launched sovereign critical-infrastructure solutions in Canada, giving governments and organizations more control over data and technology choices. The announcement supports Cisco’s public-sector and sovereign-cloud strategy, but near-term financial impact is unclear. Cisco Launches Sovereign Critical Infrastructure in Canada
• Negative Sentiment: Valuation and execution risks: Cisco trades at a relatively elevated earnings multiple after its recent rally, and investors previously sold the stock despite strong results and guidance. Cisco also faces competition from NVIDIA, Supermicro and other AI-connectivity suppliers, which could limit margins or market share.

Analyst Ratings Changes

Several research firms have weighed in on CSCO. Wall Street Zen raised shares of Cisco Systems from a "hold" rating to a "buy" rating in a research note on Saturday, August 15th. Wells Fargo & Company raised their price objective on Cisco Systems from $130.00 to $150.00 and gave the company an "overweight" rating in a research note on Thursday, August 13th. Bank of America boosted their target price on Cisco Systems from $135.00 to $150.00 and gave the company a "buy" rating in a research note on Monday, June 8th. Weiss Ratings upgraded Cisco Systems from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, May 29th. Finally, Citigroup raised their price target on Cisco Systems from $90.00 to $112.00 and gave the stock a "buy" rating in a research report on Thursday, May 14th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, Cisco Systems presently has an average rating of "Moderate Buy" and a consensus target price of $129.43.

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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