Cisco Systems, Inc. $CSCO is Paralel Advisors LLC's 4th Largest Position

Key Points

• Paralel Advisors reduced its Cisco stake by 19.4% in the second quarter, selling 240,000 shares but retaining 1 million shares worth approximately $117.5 million. Cisco remains the fund’s fourth-largest holding and represents 4.5% of its portfolio.
• Analysts maintain a moderately bullish outlook: Cisco has a consensus “Moderate Buy” rating and an average price target of $129.43, with several firms recently raising their targets.
• Cisco exceeded quarterly expectations with $1.22 in EPS and $17.25 billion in revenue, up 17.6% year over year, and announced a quarterly dividend of $0.42 per share. Shares opened at $109.59, while AI infrastructure demand remains a key growth catalyst amid concerns about margins and valuation.

Paralel Advisors LLC reduced its holdings in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 19.4% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 1,000,000 shares of the network equipment provider's stock after selling 240,000 shares during the quarter. Cisco Systems makes up 4.5% of Paralel Advisors LLC's portfolio, making the stock its 4th biggest holding. Paralel Advisors LLC's holdings in Cisco Systems were worth $117,460,000 as of its most recent SEC filing.

Other hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in shares of Cisco Systems by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 398,943,293 shares of the network equipment provider's stock worth $30,730,602,000 after acquiring an additional 4,049,893 shares during the last quarter. BlackRock Inc. acquired a new position in Cisco Systems during the second quarter worth approximately $42,129,647,000. State Street Corp raised its stake in Cisco Systems by 0.5% during the fourth quarter. State Street Corp now owns 195,521,161 shares of the network equipment provider's stock worth $15,060,995,000 after purchasing an additional 1,057,962 shares during the period. Morgan Stanley raised its stake in Cisco Systems by 0.3% during the fourth quarter. Morgan Stanley now owns 75,326,258 shares of the network equipment provider's stock worth $5,802,382,000 after purchasing an additional 206,352 shares during the period. Finally, Invesco Ltd. boosted its holdings in shares of Cisco Systems by 11.6% in the 4th quarter. Invesco Ltd. now owns 59,836,782 shares of the network equipment provider's stock valued at $4,609,227,000 after purchasing an additional 6,224,062 shares during the last quarter. 73.33% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on CSCO. Weiss Ratings upgraded Cisco Systems from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, May 29th. Truist Financial lifted their target price on Cisco Systems from $125.00 to $140.00 and gave the company a "buy" rating in a report on Thursday, August 13th. New Street Research upped their price target on Cisco Systems from $82.00 to $122.00 and gave the stock a "neutral" rating in a research note on Thursday, May 14th. CICC Research raised their price objective on Cisco Systems from $96.00 to $125.00 and gave the stock an "outperform" rating in a report on Monday, May 18th. Finally, The Goldman Sachs Group lifted their price objective on Cisco Systems from $116.00 to $125.00 and gave the company a "neutral" rating in a research note on Wednesday, June 3rd. Two research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, Cisco Systems presently has a consensus rating of "Moderate Buy" and a consensus target price of $129.43.

Cisco Systems Stock Down 0.9%

Shares of Cisco Systems stock opened at $109.59 on Friday. Cisco Systems, Inc. has a twelve month low of $66.13 and a twelve month high of $130.37. The stock has a market cap of $431.94 billion, a price-to-earnings ratio of 32.81, a price-to-earnings-growth ratio of 2.35 and a beta of 1.02. The company has a current ratio of 0.93, a quick ratio of 0.79 and a debt-to-equity ratio of 0.39. The company has a fifty day moving average price of $116.22 and a 200 day moving average price of $100.16.

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, 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 company had revenue of $17.25 billion for the quarter, compared to analysts' expectations of $16.84 billion. During the same quarter in the previous year, the firm 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. Equities research analysts forecast that Cisco Systems, Inc. will post 4.09 earnings per share 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. Stockholders of record on Friday, October 2nd will be given a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, October 2nd. Cisco Systems's payout ratio is presently 50.30%.

Cisco Systems News Summary

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

• Positive Sentiment: AI infrastructure demand remains a major growth catalyst. Cisco reported $4 billion in AI infrastructure orders during the quarter, helping drive record fiscal-year results. Product revenue increased 24% year over year, while total quarterly revenue rose 18% to $17.25 billion and adjusted earnings exceeded consensus estimates. Cisco Q4 2026 Earnings Call Transcript
• Positive Sentiment: Analysts see additional upside potential. Bank of America reiterated a Buy rating and a $150 price target, indicating confidence in Cisco’s AI networking opportunity, although execution on a key business issue will remain important. BofA makes bold call on Cisco stock after earnings
• Positive Sentiment: Expansion into streaming infrastructure could broaden Cisco’s opportunity. Demand for low-latency live video, AI-enabled media workflows and expanded content-delivery capacity is highlighting Cisco’s networking equipment as a potential beneficiary. What Could Cisco Systems Gain From The Streaming Infrastructure Boom?
• Neutral Sentiment: An executive sold 5,832 shares worth approximately $650,000 under a pre-arranged Rule 10b5-1 trading plan. Because the sale represented only 4.35% of the executive’s holdings and was scheduled in advance, it may have limited fundamental significance. Cisco executive SEC filing
• Negative Sentiment: The market is concerned that strong AI orders may not fully translate into near-term earnings growth. Analysts cited margin pressure, softer recurring revenue growth and Cisco’s premium valuation as reasons to remain cautious, producing a “hold” view from some commentators despite the revenue beat. Cisco Drops 10% Post Q4 Earnings

Insiders Place Their Bets

In related news, EVP Thimaya K. Subaiya sold 7,127 shares of the firm's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $119.91, for a total transaction of $854,598.57. Following the completion of the sale, the executive vice president directly owned 140,857 shares of the company's stock, valued at approximately $16,890,162.87. This trade represents a 4.82% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeetendra I. Patel sold 7,170 shares of the company's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $111.57, for a total transaction of $799,956.90. Following the completion of the transaction, the insider directly owned 230,593 shares of the company's stock, valued at approximately $25,727,261.01. The trade was a 3.02% 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. In the last ninety days, insiders sold 53,611 shares of company stock valued at $6,066,680. Corporate insiders own 0.01% of the company's stock.

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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