Cisco Systems, Inc. $CSCO Stock: International Assets Investment Management LLC Trims Holdings

Key Points

• International Assets Investment Management cut its Cisco stake by 91.2% in the third quarter, selling 31,613 shares and ending the period with 3,040 shares worth about $327,000.
• Cisco shares fell 7.6% amid a Morgan Stanley downgrade to Equal Weight and a price-target reduction from $135 to $120; the firm warned AI-related sales growth could pressure margins if product mix becomes less profitable.
• There were offsetting positives: Cisco was recognized as a leader in data-center optical networking, while its latest reported quarter beat earnings and revenue expectations, with revenue up 17.6% year over year.

International Assets Investment Management LLC trimmed its position in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 91.2% in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,040 shares of the network equipment provider's stock after selling 31,613 shares during the period. International Assets Investment Management LLC's holdings in Cisco Systems were worth $327,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Prosperitas Financial LLC grew its stake in Cisco Systems by 15.4% in the third quarter. Prosperitas Financial LLC now owns 3,786 shares of the network equipment provider's stock valued at $407,000 after acquiring an additional 506 shares during the period. Lebenthal Global Advisors LLC increased its holdings in shares of Cisco Systems by 8.6% during the third quarter. Lebenthal Global Advisors LLC now owns 7,310 shares of the network equipment provider's stock valued at $787,000 after acquiring an additional 580 shares in the last quarter. Canopy Partners LLC increased its holdings in shares of Cisco Systems by 3.5% during the third quarter. Canopy Partners LLC now owns 17,508 shares of the network equipment provider's stock valued at $1,884,000 after acquiring an additional 591 shares in the last quarter. CHICAGO TRUST Co NA raised its position in shares of Cisco Systems by 14.1% during the third quarter. CHICAGO TRUST Co NA now owns 62,491 shares of the network equipment provider's stock worth $6,726,000 after purchasing an additional 7,725 shares during the period. Finally, Glenview Trust Co raised its position in shares of Cisco Systems by 1.8% during the third quarter. Glenview Trust Co now owns 499,335 shares of the network equipment provider's stock worth $53,743,000 after purchasing an additional 8,755 shares during the period. 73.33% of the stock is owned by institutional investors.

Insider Activity

In other news, EVP Deborah L. Stahlkopf sold 6,487 shares of the stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $111.53, for a total value of $723,495.11. Following the completion of the sale, the executive vice president owned 167,116 shares in the company, valued at $18,638,447.48. This represents a 3.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeetendra I. Patel sold 7,170 shares of the firm'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 transaction, the insider directly owned 230,593 shares in the company, valued at $25,727,261.01. The trade was a 3.02% 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. Over the last ninety days, insiders sold 44,869 shares of company stock worth $5,005,620. Company insiders own 0.01% of the company's stock.

Key Stories 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, 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

Cisco Systems Stock Down 7.6%

CSCO stock opened at $95.72 on Friday. Cisco Systems, Inc. has a twelve month low of $70.54 and a twelve month high of $130.37. The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39. The stock's 50 day moving average is $109.18 and its 200-day moving average is $101.53. The firm has a market capitalization of $377.38 billion, a PE ratio of 28.66, a P/E/G ratio of 2.16 and a beta of 1.01.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last announced its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate 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 earned $0.99 earnings per share. Cisco Systems'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. Sell-side analysts expect 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. Shareholders of record on Friday, October 2nd were paid a dividend of $0.42 per share. The ex-dividend date was Friday, October 2nd. This represents a $1.68 annualized dividend and a yield of 1.8%. Cisco Systems's dividend payout ratio (DPR) is 50.30%.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on CSCO. Piper Sandler reduced their price target on shares of Cisco Systems from $132.00 to $125.00 and set a "neutral" rating for the company in a research report on Tuesday, September 22nd. Freedom Capital upgraded shares of Cisco Systems from a "hold" rating to a "strong-buy" rating in a report on Sunday, August 16th. Truist Financial raised their price objective on shares of Cisco Systems from $125.00 to $140.00 and gave the company a "buy" rating in a research note on Thursday, August 13th. Rosenblatt Securities lifted their price objective on shares of Cisco Systems from $150.00 to $165.00 and gave the company a "buy" rating in a report on Thursday, August 13th. Finally, KeyCorp boosted their target price on shares of Cisco Systems from $130.00 to $135.00 and gave the stock an "overweight" rating in a research report on Thursday, August 13th. Three analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, Cisco Systems has a consensus rating of "Moderate Buy" and an average target price of $127.87.

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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