Cisco Systems, Inc. $CSCO Position Lowered by Welch Group LLC

Key Points

• Welch Group LLC reduced its Cisco Systems stake by 2.0% in the first quarter, though Cisco remains a major holding for the firm at 2.8% of its portfolio.
• Cisco’s recent operating results were solid, with quarterly earnings of $1.06 per share beating estimates and revenue of $15.84 billion topping forecasts; the company also reiterated guidance for FY 2026.
• Analyst sentiment remains broadly positive, with KeyCorp and Bank of America raising price targets and Cisco carrying a consensus “Moderate Buy” rating, despite some insider selling and a planned layoff announcement.

Welch Group LLC trimmed its position in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 2.0% in the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 946,955 shares of the network equipment provider's stock after selling 19,004 shares during the period. Cisco Systems accounts for about 2.8% of Welch Group LLC's investment portfolio, making the stock its 12th biggest holding. Welch Group LLC's holdings in Cisco Systems were worth $73,474,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently bought and sold shares of CSCO. Smithfield Trust Co lifted its holdings in Cisco Systems by 0.3% during the 4th quarter. Smithfield Trust Co now owns 33,666 shares of the network equipment provider's stock worth $2,596,000 after buying an additional 117 shares during the last quarter. Pacific Sage Partners LLC increased its holdings in shares of Cisco Systems by 0.7% in the 1st quarter. Pacific Sage Partners LLC now owns 16,185 shares of the network equipment provider's stock valued at $1,256,000 after acquiring an additional 118 shares during the last quarter. Capstone Wealth Management Group LLC raised its position in shares of Cisco Systems by 3.2% during the 4th quarter. Capstone Wealth Management Group LLC now owns 3,818 shares of the network equipment provider's stock valued at $294,000 after acquiring an additional 120 shares in the last quarter. Hilton Head Capital Partners LLC raised its position in shares of Cisco Systems by 0.9% during the 1st quarter. Hilton Head Capital Partners LLC now owns 13,488 shares of the network equipment provider's stock valued at $1,047,000 after acquiring an additional 120 shares in the last quarter. Finally, Main Management ETF Advisors LLC lifted its stake in Cisco Systems by 1.0% during the fourth quarter. Main Management ETF Advisors LLC now owns 12,528 shares of the network equipment provider's stock worth $965,000 after purchasing an additional 128 shares during the last quarter. 73.33% of the stock is owned by institutional investors.

Cisco Systems News Summary

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

• Positive Sentiment: KeyCorp raised its price target on Cisco to $130 and reiterated an Overweight rating, suggesting upside from current levels. Cisco Systems price target raised by KeyCorp
• Positive Sentiment: Cisco received a consensus rating of “Moderate Buy” from brokerages, reinforcing a generally favorable long-term analyst view. Cisco Systems receives consensus rating of Moderate Buy from brokerages
• Positive Sentiment: A valuation update lifted Cisco’s fair value estimate modestly, with analysts pointing to stronger AI networking execution, campus refresh demand, and optical growth tied to Acacia. Cisco stock sees modest fair value lift after AI networking target raises
• Neutral Sentiment: Cisco joined a Linux Foundation-led initiative, Akrites, aimed at strengthening critical open-source software against AI-enabled cyber threats, which may support its cybersecurity positioning but is not an immediate earnings driver. Linux Foundation and industry leaders launch Akrites
• Neutral Sentiment: Recent earnings coverage highlighted Cisco’s latest quarterly results and broader IT-services tech trends, but did not add a major new catalyst by itself. Q1 earnings roundup: Cisco and the rest of the IT services & other tech segment
• Negative Sentiment: Cisco disclosed plans to lay off more than 400 workers in California, which can signal cost-cutting or restructuring pressure and may weigh on sentiment. Cisco to lay off more than 400 workers in California
• Negative Sentiment: Broader tech weakness, including an AI and memory-stock selloff tied to an OpenAI IPO delay report, may also be dragging on Cisco shares. Nvidia, Micron, AMD lead chip selloff on OpenAI IPO delay report rattles tech

Cisco Systems Stock Down 4.4%

Shares of Cisco Systems stock opened at $113.77 on Friday. The company has a debt-to-equity ratio of 0.40, a current ratio of 0.92 and a quick ratio of 0.81. Cisco Systems, Inc. has a 1-year low of $65.75 and a 1-year high of $130.37. The business's fifty day moving average price is $109.79 and its two-hundred day moving average price is $89.46. The company has a market capitalization of $448.42 billion, a P/E ratio of 36.94, a PEG ratio of 3.03 and a beta of 1.01.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its quarterly earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.03 by $0.03. The company had revenue of $15.84 billion during the quarter, compared to analysts' expectations of $15.56 billion. Cisco Systems had a return on equity of 28.44% and a net margin of 20.14%.The company's revenue for the quarter was up 12.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.96 earnings per share. Cisco Systems has set its Q4 2026 guidance at 1.160-1.180 EPS and its FY 2026 guidance at 4.270-4.290 EPS. As a group, research analysts forecast that Cisco Systems, Inc. will post 3.54 EPS for the current year.

Cisco Systems Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 22nd. Shareholders of record on Monday, July 6th will be paid a dividend of $0.42 per share. The ex-dividend date of this dividend is Monday, July 6th. This represents a $1.68 annualized dividend and a yield of 1.5%. Cisco Systems's dividend payout ratio (DPR) is presently 54.55%.

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. KeyCorp lifted their price objective on shares of Cisco Systems from $125.00 to $130.00 and gave the stock an "overweight" rating in a report on Thursday. Bank of America raised their price target on shares of Cisco Systems from $135.00 to $150.00 and gave the stock a "buy" rating in a research report on Monday, June 8th. Zacks Research lowered shares of Cisco Systems from a "strong-buy" rating to a "hold" rating in a report on Monday, April 13th. Citic Securities boosted their price objective on shares of Cisco Systems from $90.00 to $130.00 in a research report on Friday, May 15th. Finally, Wells Fargo & Company increased their price objective on shares of Cisco Systems from $95.00 to $130.00 and gave the stock an "overweight" rating in a research note on Thursday, May 14th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $123.14.

Insider Activity

In other Cisco Systems news, insider Jeetendra I. Patel sold 7,169 shares of the business's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $117.28, for a total transaction of $840,780.32. Following the sale, the insider directly owned 246,737 shares in the company, valued at approximately $28,937,315.36. The trade was a 2.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Deborah L. Stahlkopf sold 6,586 shares of the company's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $117.31, for a total transaction of $772,603.66. Following the completion of the sale, the executive vice president directly owned 177,223 shares of the company's stock, valued at approximately $20,790,030.13. This represents a 3.58% 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. Insiders have sold 47,650 shares of company stock worth $5,668,823 in the last 90 days. 0.01% of the stock is currently owned by corporate 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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