Cisco Systems, Inc. $CSCO Shares Purchased by Diversify Advisory Services LLC

Key Points

• Diversify Advisory Services increased its Cisco position by 5.8% in the third quarter, bringing its holdings to 186,326 shares valued at approximately $20.5 million. Institutional investors and hedge funds collectively own 73.33% of Cisco’s stock.
• AI infrastructure demand is strengthening Cisco’s growth outlook. The company reported quarterly revenue and earnings above expectations, while new high-capacity networking platforms, optical technology and Splunk observability offerings could benefit from continued AI-related spending.
• Analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and an average price target of $128.52, though valuation and potential hardware-margin pressure remain risks. Cisco also declared a quarterly dividend of $0.42 per share, representing a 1.6% annualized yield.

Diversify Advisory Services LLC grew its position in shares of Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 5.8% during the 3rd quarter, according to the company in its most recent filing with the SEC. The firm owned 186,326 shares of the network equipment provider's stock after purchasing an additional 10,166 shares during the quarter. Diversify Advisory Services LLC's holdings in Cisco Systems were worth $20,468,000 as of its most recent filing with the SEC.

Other hedge funds also recently modified their holdings of the company. Petredis Investment Advisors LLC boosted its position in shares of Cisco Systems by 0.3% during the 3rd quarter. Petredis Investment Advisors LLC now owns 62,778 shares of the network equipment provider's stock valued at $6,757,000 after purchasing an additional 157 shares in the last quarter. Revisor Wealth Management LLC raised its holdings in shares of Cisco Systems by 10.4% in the 3rd quarter. Revisor Wealth Management LLC now owns 4,848 shares of the network equipment provider's stock worth $523,000 after purchasing an additional 455 shares in the last quarter. Briaud Financial Planning Inc raised its holdings in shares of Cisco Systems by 5.1% in the 3rd quarter. Briaud Financial Planning Inc now owns 2,553 shares of the network equipment provider's stock worth $275,000 after purchasing an additional 124 shares in the last quarter. West Branch Capital LLC lifted its stake in Cisco Systems by 1.7% during the third quarter. West Branch Capital LLC now owns 55,190 shares of the network equipment provider's stock valued at $5,940,000 after purchasing an additional 915 shares during the last quarter. Finally, 55 North Private Wealth LLC lifted its stake in Cisco Systems by 4.8% during the third quarter. 55 North Private Wealth LLC now owns 10,107 shares of the network equipment provider's stock valued at $1,088,000 after purchasing an additional 459 shares during the last quarter. 73.33% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Cisco Systems

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

• Positive Sentiment: New AI networking platforms strengthen Cisco’s growth story. Cisco introduced 51.2-terabit and 102.4-terabit networking systems powered by its Silicon One chips, along with 1.6T optical modules and liquid-cooling technology for high-density data centers. Its collaboration with NVIDIA, TE Connectivity and Amphenol on next-generation optical connectivity could help Cisco capture more spending from the expanding AI infrastructure buildout. Cisco Systems Unveiled 102.4T AI Networking Platforms
• Positive Sentiment: AI demand is supporting an optimistic earnings setup. A preview article cited Cisco’s guidance for approximately 21% year-over-year revenue growth and 33% EPS growth, alongside recent revenue and earnings beats. Agentic AI adoption and infrastructure contracts, including international opportunities such as Bell Canada, are viewed as longer-term catalysts. Cisco Earnings Preview
• Positive Sentiment: Industry commentary supports continued AI capital spending. Strategist Tom Lee argued that the AI investment cycle may have substantial room to run, with networking, power, cooling and security among the beneficiaries. This reinforces the bullish case that Cisco’s AI order momentum could develop into a broader networking supercycle. Tom Lee on AI Stocks and Cisco
• Positive Sentiment: Splunk’s observability research highlights a potential software opportunity. Cisco reported that enterprises are struggling to monitor AI agents and control rising telemetry and AI costs. Growing demand for observability, security and operational predictability could support cross-selling through Cisco’s Splunk business. Splunk State of Observability 2026
• Neutral Sentiment: World Wide Technology’s new Cisco Secure AI Infrastructure specialization adds partner validation, but the direct near-term revenue impact is unclear. World Wide Technology Achieves Cisco Specialization
• Negative Sentiment: Valuation and margin risks remain important headwinds. One analyst downgraded Cisco to Hold after a substantial year-to-date rally, arguing that the shares are near fair value and that hardware mix could pressure gross margins. Elevated price-to-sales levels may also reduce the stock’s sensitivity to positive AI news. Cisco Valuation and Technical Support

Insider Transactions at Cisco Systems

In other news, insider Jeetendra I. Patel sold 7,170 shares of the company's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $111.57, for a total value of $799,956.90. Following the transaction, the insider owned 230,593 shares in the company, valued at $25,727,261.01. This represents a 3.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,628 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $111.54, for a total transaction of $2,412,387.12. Following the completion of the sale, the chief executive officer directly owned 602,710 shares of the company's stock, valued at $67,226,273.40. This trade represents a 3.46% 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. In the last 90 days, insiders sold 44,869 shares of company stock worth $5,005,620. 0.01% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

CSCO has been the subject of a number of research reports. KeyCorp raised their target price on shares of Cisco Systems from $130.00 to $135.00 and gave the stock an "overweight" rating in a report on Thursday, August 13th. HSBC cut Cisco Systems from a "buy" rating to a "hold" rating and dropped their price target for the company from $137.00 to $120.00 in a report on Friday, August 14th. Truist Financial increased their price objective on Cisco Systems from $125.00 to $140.00 and gave the company a "buy" rating in a research report on Thursday, August 13th. Wall Street Zen raised Cisco Systems from a "hold" rating to a "buy" rating in a research note on Sunday, October 11th. Finally, Freedom Capital upgraded Cisco Systems from a "hold" rating to a "strong-buy" rating in a report on Sunday, August 16th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $128.52.

Cisco Systems Price Performance

Shares of NASDAQ:CSCO opened at $106.71 on Wednesday. The company's fifty day moving average is $110.78 and its two-hundred day moving average is $109.50. 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, Inc. has a 12-month low of $69.85 and a 12-month high of $130.37. The company has a market cap of $420.71 billion, a P/E ratio of 31.95, a price-to-earnings-growth ratio of 2.22 and a beta of 0.99.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, topping the consensus estimate of $1.17 by $0.05. The business had revenue of $17.25 billion during the quarter, compared to analysts' expectations of $16.84 billion. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%. Cisco Systems's revenue was up 17.6% compared to the same quarter last year. During the same quarter last 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. Equities analysts expect that Cisco Systems, Inc. will post 4.42 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 21st. Investors of record on Friday, October 2nd will be paid a $0.42 dividend. This represents a $1.68 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Friday, October 2nd. Cisco Systems's dividend payout ratio is currently 50.30%.

Cisco Systems Profile

Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration and observability solutions for businesses, government organizations and service providers. Its offerings include routers, switches, wireless networking equipment, data-center infrastructure, security software and services, as well as technologies that support cloud and hybrid IT environments.

The company also provides collaboration tools through its Webex portfolio, cloud-managed networking through Cisco Meraki and security and observability capabilities that include technologies from Splunk, which Cisco acquired in 2024.

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