California State Teachers Retirement System Grows Stock Holdings in Cisco Systems, Inc. $CSCO

Key Points

• Institutional ownership surged: California State Teachers Retirement System increased its Cisco stake by 11,624.6% to 706.1 million shares, representing about 17.92% of the company. Overall, institutional investors own 73.33% of Cisco.
• Cisco beat quarterly expectations: The company reported adjusted earnings of $1.22 per share and revenue of $17.25 billion, exceeding consensus estimates, while revenue rose 17.6% year over year.
• Dividend and analyst outlook remain supportive: Cisco declared a quarterly dividend of $0.42 per share, implying a 1.5% yield, and analysts maintain a “Moderate Buy” consensus with an average price target of $129.68 versus the stock’s $109.20 opening price.

California State Teachers Retirement System grew its holdings in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 11,624.6% in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 706,130,053 shares of the network equipment provider's stock after buying an additional 700,107,427 shares during the period. California State Teachers Retirement System owned approximately 17.92% of Cisco Systems worth $82,942,036,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also recently made changes to their positions in the business. BlackRock Inc. purchased a new stake in Cisco Systems during the second quarter valued at approximately $42,129,647,000. Norges Bank purchased a new position in shares of Cisco Systems in the 4th quarter worth approximately $4,473,272,000. Auto Owners Insurance Co boosted its holdings in shares of Cisco Systems by 8,718.3% in the 4th 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 during the period. Bank of America Corp DE bought a new position in shares of Cisco Systems during the 2nd quarter valued at approximately $5,892,379,000. Finally, Bank of New York Mellon Corp bought a new position in shares of Cisco Systems during the 2nd quarter valued at approximately $4,714,574,000. 73.33% of the stock is currently owned by institutional investors.

Insider Activity

In related news, insider Jeetendra Patel sold 7,170 shares of Cisco Systems stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $111.57, for a total transaction of $799,956.90. Following the transaction, the insider directly owned 230,593 shares of the company's stock, valued at $25,727,261.01. This trade represents a 3.02% decrease in their ownership of the stock. 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, 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 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 trade represents a 1.64% 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. In the last quarter, insiders sold 53,611 shares of company stock valued at $6,066,680. 0.01% of the stock is currently owned by corporate insiders.

Cisco Systems Price Performance

CSCO opened at $109.20 on Monday. The company has a market capitalization of $430.53 billion, a price-to-earnings ratio of 32.69, a PEG ratio of 2.28 and a beta of 1.00. The company has a current ratio of 0.93, a quick ratio of 0.79 and a debt-to-equity ratio of 0.39. Cisco Systems, Inc. has a 12-month low of $66.13 and a 12-month high of $130.37. The business's fifty day simple moving average is $114.26 and its 200-day simple moving average is $102.38.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share 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 during the quarter, compared to the consensus estimate of $16.84 billion. During the same period in the previous year, the company posted $0.99 earnings per share. The firm's quarterly revenue 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. On average, equities research analysts anticipate that Cisco Systems, Inc. will post 4.43 earnings per share for the current fiscal year.

Cisco Systems Dividend Announcement

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

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on CSCO. Barclays raised their price target on Cisco Systems from $121.00 to $123.00 and gave the stock an "equal weight" rating in a research report on Thursday, August 13th. Citic Securities increased their target price on shares of Cisco Systems from $90.00 to $130.00 in a research note on Friday, May 15th. The Goldman Sachs Group raised their target price on shares of Cisco Systems from $116.00 to $125.00 and gave the stock a "neutral" rating in a report on Wednesday, June 3rd. Morgan Stanley lifted their price target on shares of Cisco Systems from $130.00 to $135.00 and gave the stock an "overweight" rating in a research note on Thursday, August 13th. Finally, Deutsche Bank Aktiengesellschaft started coverage on shares of Cisco Systems in a research report on Tuesday, September 1st. They issued a "buy" rating and a $135.00 price objective on the stock. Two research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $129.68.

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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