Cisco Systems, Inc. $CSCO Holdings Increased by Mechanics Bank Trust Department

Key Points

• Mechanics Bank Trust Department increased its Cisco position by 34.2% in the third quarter to 69,175 shares valued at approximately $7.45 million. Institutional investors collectively own 73.33% of Cisco’s stock.
• Cisco exceeded quarterly expectations with $1.22 EPS and $17.25 billion in revenue, up 17.6% year over year, and announced a $0.42 quarterly dividend, representing a 1.5% yield.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average $128.52 price target, supported by AI-infrastructure partnerships and networking demand; however, valuation concerns and recent insider selling present cautionary signals.

Mechanics Bank Trust Department grew its position in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 34.2% during the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 69,175 shares of the network equipment provider's stock after acquiring an additional 17,643 shares during the period. Cisco Systems comprises 1.0% of Mechanics Bank Trust Department's portfolio, making the stock its 28th largest holding. Mechanics Bank Trust Department's holdings in Cisco Systems were worth $7,445,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Cozad Asset Management Inc. raised its holdings in Cisco Systems by 0.3% during 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 position in Cisco Systems by 3.9% in the second quarter. Dogwood Wealth Management LLC now owns 2,413 shares of the network equipment provider's stock valued at $283,000 after purchasing an additional 90 shares during the period. Green Ridge Wealth Planning LLC boosted its holdings in Cisco Systems by 1.5% in the 3rd quarter. Green Ridge Wealth Planning LLC now owns 6,017 shares of the network equipment provider's stock valued at $648,000 after purchasing 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 valued at $555,000 after purchasing an additional 91 shares in the last quarter. Finally, Financial Insights Inc. boosted its holdings 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 valued at $483,000 after purchasing an additional 92 shares in the last quarter. Hedge funds and other institutional investors own 73.33% of the company's stock.

Cisco Systems Price Performance

Shares of CSCO stock traded down $0.27 during midday trading on Tuesday, reaching $115.07. 12,319,273 shares of the company traded hands, compared to its average volume of 22,350,076. The firm's 50 day simple moving average is $112.04 and its two-hundred day simple moving average is $108.45. The firm has a market cap of $453.67 billion, a PE ratio of 34.45, a price-to-earnings-growth ratio of 2.46 and a beta of 0.99. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.93 and a quick ratio of 0.79. Cisco Systems, Inc. has a 1-year low of $66.81 and a 1-year high of $130.37.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share for the quarter, topping analysts' consensus estimates of $1.17 by $0.05. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%. The business 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 EPS. The company's revenue 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. On average, equities research analysts expect that Cisco Systems, Inc. will post 4.42 EPS for the current fiscal year.

Cisco Systems Announces Dividend

The company also recently announced 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 of this dividend is Friday, October 2nd. This represents a $1.68 annualized dividend and a yield of 1.5%. Cisco Systems's dividend payout ratio is 50.30%.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on CSCO shares. Freedom Capital upgraded Cisco Systems from a "hold" rating to a "strong-buy" rating in a research report on Sunday, August 16th. Sanford C. Bernstein assumed coverage on Cisco Systems in a report on Wednesday, September 30th. They issued a "market perform" rating and a $110.00 price target for the company. Wall Street Zen upgraded Cisco Systems from a "hold" rating to a "buy" rating in a research note on Sunday. UBS Group lifted their price target on Cisco Systems from $132.00 to $138.00 and gave the company a "buy" rating in a research note on Thursday, August 13th. Finally, Barclays upped their price objective on Cisco Systems from $121.00 to $123.00 and gave the stock an "equal weight" rating in a report on Thursday, August 13th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat.com, Cisco Systems presently has an average rating of "Moderate Buy" and an average target price of $128.52.

Key Stories Impacting Cisco Systems

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

• Positive Sentiment: AI infrastructure partnership strengthens growth outlook: Cisco and NVIDIA are developing an open, ultra-dense pluggable-optics design supporting 400G-per-lane electrical signals and capacity of up to 12.8Tb/s. The technology is intended to help AI data centers connect more GPUs, increase bandwidth density and reduce networking’s share of power consumption. NVIDIA and Cisco Introduce New Pluggable Optics Form Factor to Scale AI Factories
• Positive Sentiment: Open infrastructure announcements support Cisco’s positioning: At the OCP Global Summit, Cisco introduced new silicon, systems and optical products designed to support large-scale, distributed AI factories while preserving open standards and customer choice. This could expand its opportunity in AI networking and data-center equipment. Cisco Advances Scalability and Openness at OCP 2026
• Positive Sentiment: Analysts point to durable demand drivers: Coverage emphasizes surging AI infrastructure orders, solid networking demand and security growth. Cisco’s prior quarter also showed revenue and earnings above consensus, supporting the case for continued growth. Should You Buy, Sell, or Hold Cisco Stock After a 68% Rise in a Year?
• Neutral Sentiment: Investor attention is elevated: Cisco is among the most-watched stocks on Zacks, though the trending-stock coverage does not provide a new fundamental catalyst. Cisco Systems Is a Trending Stock
• Negative Sentiment: Profit-taking and valuation concerns are weighing on sentiment: After a roughly 68% annual advance, investors may be resetting expectations and questioning whether AI-led growth is nearing a peak. Recent insider activity also shows reported sales without purchases, adding a modest cautionary signal. Why Cisco Systems Stock Is Down

Insider Buying and Selling

In other news, EVP Thimaya Subaiya sold 312 shares of the firm's stock in a transaction on Monday, September 14th. The stock was sold at an average price of $110.18, for a total value of $34,376.16. Following the completion of the transaction, the executive vice president owned 127,661 shares in the company, valued at $14,065,688.98. This trade represents a 0.24% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 680 shares of the firm's stock in a transaction on Monday, September 14th. The shares were sold at an average price of $110.18, for a total value of $74,922.40. Following the completion of the transaction, the executive vice president owned 163,337 shares of the company's stock, valued at approximately $17,996,470.66. This represents a 0.41% 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. Insiders have sold 44,869 shares of company stock valued at $5,005,620 in the last three months. 0.01% of the stock is owned by insiders.

Cisco Systems Company Profile

Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration, observability and data center solutions. Its products and services help businesses, governments, educational institutions and other organizations connect users and devices, manage infrastructure, protect digital environments and support cloud-based operations.

Cisco's portfolio includes routers and switches, wireless networking equipment, network management software, firewalls, identity and access tools, endpoint security products, collaboration applications and observability platforms.

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