Cisco Systems, Inc. $CSCO Stock: Alta Advisers Ltd Boosts Position

Key Points

• Alta Advisers increased its Cisco stake by 82.3% in the third quarter, adding 12,805 shares to hold 28,364 shares valued at about $3.05 million. Hedge funds and other institutions own 73.33% of Cisco’s stock.
• Cisco shares were reported down 7.6%, amid a Morgan Stanley downgrade to Equal Weight and a price-target cut to $120. The firm warned that faster AI infrastructure growth could bring a less profitable product mix and pressure margins.
• Cisco’s latest reported quarter beat expectations: earnings were $1.22 per share versus a $1.17 consensus, while revenue of $17.25 billion rose 17.6% year over year.

Alta Advisers Ltd increased its holdings in shares of Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 82.3% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 28,364 shares of the network equipment provider's stock after purchasing an additional 12,805 shares during the quarter. Alta Advisers Ltd's holdings in Cisco Systems were worth $3,053,000 at the end of the most recent quarter.

Several other hedge funds also recently added to or reduced their stakes in CSCO. Kestra Advisory Services LLC increased its position in Cisco Systems by 13.0% in the 3rd quarter. Kestra Advisory Services LLC now owns 692,444 shares of the network equipment provider's stock valued at $74,528,000 after acquiring an additional 79,691 shares during the period. Claro Advisors Inc. increased its holdings in shares of Cisco Systems by 10.9% in the third quarter. Claro Advisors Inc. now owns 51,528 shares of the network equipment provider's stock valued at $5,546,000 after purchasing an additional 5,056 shares during the period. REAP Financial Group LLC raised its stake in shares of Cisco Systems by 12.2% during the third quarter. REAP Financial Group LLC now owns 3,900 shares of the network equipment provider's stock worth $420,000 after purchasing an additional 423 shares during the last quarter. Cora Capital Advisors LLC raised its stake in shares of Cisco Systems by 3.3% during the third quarter. Cora Capital Advisors LLC now owns 5,647 shares of the network equipment provider's stock worth $608,000 after purchasing an additional 181 shares during the last quarter. Finally, QTR Family Wealth LLC raised its stake in shares of Cisco Systems by 1.5% during the third quarter. QTR Family Wealth LLC now owns 10,805 shares of the network equipment provider's stock worth $1,163,000 after purchasing an additional 162 shares during the last quarter. 73.33% of the stock is currently owned by hedge funds and other institutional investors.

More Cisco Systems News

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, supporting its positioning in optical networking as AI drives demand for data center connections. Article: Ciena, Nokia, and Cisco Named Leaders in ABI Research’s Open Line Systems for Data Center Interconnect Scale-Across Ranking
• Positive Sentiment: Spectrum Business introduced a managed secure-networking service using Cisco routers and security software, creating a new channel to sell Cisco solutions to businesses building AI-focused infrastructure. Article: Cisco Systems Expands Into Managed Secure Networking For AI Enterprise Infrastructure
• Neutral Sentiment: Cisco reports Q3 results on November 12. Wall Street expects earnings growth, while options traders are pricing in a potentially sizable post-report move; the coverage also notes Cisco may lack indicators associated with a likely earnings beat. Article: Cisco Systems Set for Near 11% Move After Q3 Earnings Next Week Article: Cisco Systems Reports Next Week: Wall Street Expects Earnings Growth
• Negative Sentiment: Morgan Stanley cut its rating on Cisco from Overweight to Equal Weight and lowered its price target from $135 to $120. The firm sees risk that faster AI infrastructure revenue growth brings a less profitable product mix, squeezing gross margins and earnings growth, particularly in fiscal 2028. Article: Morgan Stanley Downgrades Cisco On AI Impacting Gross Margins
• Negative Sentiment: The downgrade coincided with a broader pullback in AI infrastructure stocks, adding sector-wide pressure to Cisco’s shares. Article: Cisco Falls on Morgan Stanley Downgrade; Networking Stocks Retreat

Insider Buying and Selling at Cisco Systems

In related news, CEO Charles Robbins sold 21,628 shares of the firm'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 sale, the chief executive officer directly owned 602,710 shares of the company's stock, valued at approximately $67,226,273.40. This trade represents a 3.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeetendra Patel sold 7,170 shares of the business's stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $111.57, for a total transaction of $799,956.90. Following the completion of the sale, the insider 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. Over 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 insiders.

Cisco Systems Stock Down 7.6%

Shares of NASDAQ CSCO opened at $95.72 on Friday. 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 52 week low of $70.54 and a 52 week high of $130.37. The firm has a 50-day moving average price of $109.18 and a 200 day moving average price of $101.53. The stock has a market capitalization of $377.38 billion, a price-to-earnings ratio of 28.66, a price-to-earnings-growth ratio of 2.16 and a beta of 1.01.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share for the quarter, topping the consensus estimate of $1.17 by $0.05. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The company had revenue of $17.25 billion for the quarter, compared to analyst estimates of $16.84 billion. During the same period in the prior year, the business posted $0.99 earnings per share. The firm's revenue for the quarter 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. Equities research analysts anticipate that Cisco Systems, Inc. will post 4.42 EPS for the current fiscal year.

Cisco Systems Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, October 21st. Stockholders 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 dividend on an annualized basis and a dividend yield of 1.8%. Cisco Systems's dividend payout ratio is currently 50.30%.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. KeyCorp lifted their price objective 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. Freedom Capital upgraded shares of 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 shares of Cisco Systems in a research note on Wednesday, September 30th. They issued a "market perform" rating and a $110.00 target price for the company. Truist Financial lifted their target price on shares of Cisco Systems from $125.00 to $140.00 and gave the company a "buy" rating in a report on Thursday, August 13th. Finally, Rosenblatt Securities boosted their price target on shares of Cisco Systems from $150.00 to $165.00 and gave the stock a "buy" rating in a research note on Thursday, August 13th. Three analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $127.87.

About Cisco Systems

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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