Cisco Systems, Inc. $CSCO Stake Reduced by University of Texas Texas AM Investment Management Co.

Key Points

• University of Texas Texas A&M Investment Management Co. cut its Cisco stake by 93.6% in the third quarter, selling 29,775 shares and ending the period with 2,019 shares valued at about $217,000.
• Institutional ownership remains substantial at 73.33%, though other investors made mixed moves, and Cisco executives also reported share sales under pre-arranged trading plans.
• Cisco’s outlook faces mixed signals: its AI-related networking products and services may support growth, while Morgan Stanley downgraded the stock over potential gross-margin pressure from AI infrastructure sales. The company’s upcoming earnings report is a near-term catalyst.

University of Texas Texas AM Investment Management Co. reduced its holdings in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 93.6% during the third quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 2,019 shares of the network equipment provider's stock after selling 29,775 shares during the quarter. University of Texas Texas AM Investment Management Co.'s holdings in Cisco Systems were worth $217,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Halbert Hargrove Global Advisors LLC boosted its position in shares of Cisco Systems by 142.5% during the 3rd quarter. Halbert Hargrove Global Advisors LLC now owns 257 shares of the network equipment provider's stock valued at $28,000 after acquiring an additional 151 shares during the last quarter. Kings Path Partners LLC purchased a new position in shares of Cisco Systems during the third quarter worth about $31,000. Blueline Advisors LLC bought a new position in shares of Cisco Systems in the third quarter worth approximately $32,000. GK Wealth Management LLC bought a new position in shares of Cisco Systems in the third quarter worth approximately $37,000. Finally, Manning & Napier Advisors LLC increased its position in shares of Cisco Systems by 137.0% in the first quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider's stock worth $27,000 after purchasing an additional 200 shares during the last quarter. 73.33% of the stock is currently owned by institutional investors.

Key Headlines Impacting Cisco Systems

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

• Positive Sentiment: Cisco was named a leader in ABI Research’s open line systems ranking for data-center interconnects, a market benefiting from AI-driven data-center expansion. Article: Ciena, Nokia, and Cisco Named Leaders in ABI Research’s Open Line Systems Ranking
• Positive Sentiment: New partner and cloud offerings—including AI-focused tools and expanded partner incentives—could support recurring software and services revenue. Separately, Spectrum Business introduced a managed Cisco secure-networking service aimed at AI-oriented enterprise workloads. Article: How Investors Are Reacting To Cisco Stock After Analyst Downgrade Article: Cisco Expands Into Managed Secure Networking
• Neutral Sentiment: Cisco’s Q3 earnings are scheduled for November 12. Options traders are pricing in a potentially substantial move around the report, making results and guidance a near-term catalyst. Article: Cisco Set for Near 11% Move After Q3 Earnings, Say Options Traders
• Negative Sentiment: Morgan Stanley cut Cisco from Overweight to Equal Weight and lowered its price target from $135 to $120. The firm warned that faster AI-infrastructure growth could worsen the sales mix and pressure gross margins, weighing on earnings growth in fiscal 2028. Article: Morgan Stanley Downgrades Cisco On AI Impacting Gross Margins
• Negative Sentiment: The downgrade coincided with broad selling in AI-infrastructure and networking stocks. Cisco’s shares also fell below their 200-day moving average, a technical signal that may add to investor caution. Article: Cisco Falls on Morgan Stanley Downgrade and AI Infrastructure Selloff Article: Cisco Stock Price Breaks Below 200-Day Moving Average

Insider Activity

In other news, CEO Charles Robbins sold 21,628 shares of the business's stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $111.54, for a total value of $2,412,387.12. Following the completion of the sale, the chief executive officer directly owned 602,710 shares in the company, valued at approximately $67,226,273.40. The trade was a 3.46% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Deborah Stahlkopf sold 6,487 shares of the company's stock in a transaction on Friday, August 14th. The shares were sold at an average price of $111.53, for a total transaction of $723,495.11. Following the completion of the sale, the executive vice president directly owned 167,116 shares of the company's stock, valued at $18,638,447.48. This trade represents a 3.74% 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 three months, insiders sold 44,869 shares of company stock valued at $5,005,620. Insiders own 0.01% of the company's stock.

Wall Street Analyst Weigh In

CSCO has been the subject of several research analyst reports. KeyCorp lifted their target price on shares of Cisco Systems from $130.00 to $135.00 and gave the company an "overweight" rating in a research report on Thursday, August 13th. Rosenblatt Securities increased their price target on shares of Cisco Systems from $150.00 to $165.00 and gave the stock a "buy" rating in a report on Thursday, August 13th. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Cisco Systems in a report on Tuesday, September 1st. They issued a "buy" rating and a $135.00 price target on the stock. Piper Sandler lowered their price objective on shares of Cisco Systems from $132.00 to $125.00 and set a "neutral" rating on the stock in a research report on Tuesday, September 22nd. Finally, Freedom Capital raised shares of Cisco Systems from a "hold" rating to a "strong-buy" rating in a report on Sunday, August 16th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $127.87.

Cisco Systems Price Performance

Shares of Cisco Systems stock opened at $93.85 on Monday. 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 firm has a market capitalization of $370.01 billion, a PE ratio of 28.10, a price-to-earnings-growth ratio of 1.95 and a beta of 1.01. The business's 50-day moving average price is $108.82 and its 200-day moving average price is $101.63. Cisco Systems, Inc. has a 12 month low of $70.54 and a 12 month high of $130.37.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its 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. The company had revenue of $17.25 billion during the quarter, compared to the consensus estimate of $16.84 billion. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%. Cisco Systems's quarterly revenue was up 17.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.99 EPS. 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. Sell-side analysts forecast that Cisco Systems, Inc. will post 4.42 EPS for the current fiscal year.

Cisco Systems Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd were paid a dividend of $0.42 per share. The ex-dividend date of this dividend was Friday, October 2nd. This represents a $1.68 annualized dividend and a dividend yield of 1.8%. Cisco Systems's dividend payout ratio (DPR) is 50.30%.

About Cisco Systems

Cisco Systems, Inc develops networking, cybersecurity, collaboration and observability technologies for businesses, governments and other organizations. Its products include routers, switches, wireless systems and data center infrastructure, along with security software and services that help organizations connect and protect their networks.

The company also provides collaboration tools through its Webex platform and observability capabilities through its software offerings, including technology from Splunk, which Cisco acquired in 2024.

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