Cisco Systems, Inc. $CSCO Stock: Investment House LLC Decreases Stake

Key Points

• Investment House LLC cut its Cisco stake by 50.8% in the third quarter, selling 35,073 shares and retaining 34,027 shares valued at approximately $3.66 million. Institutional investors collectively own 73.33% of Cisco.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and an average price target of $128.52, although HSBC downgraded the stock to “Hold.” Cisco shares opened at $104.89, down 2.2%.
• Cisco reported quarterly revenue of $17.25 billion and adjusted EPS of $1.22, both above analyst expectations, while revenue increased 17.6% year over year. The company also declared a quarterly dividend of $0.42 per share, implying a 1.6% yield.

Investment House LLC lessened its position in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 50.8% during the third quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 34,027 shares of the network equipment provider's stock after selling 35,073 shares during the quarter. Investment House LLC's holdings in Cisco Systems were worth $3,662,000 as of its most recent filing with the SEC.

Several other institutional investors have also recently bought and sold shares of the company. Networth Advisors LLC raised its holdings in shares of Cisco Systems by 276.4% in the first quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider's stock valued at $26,000 after purchasing an additional 246 shares during the last quarter. Financial Life Planners bought a new stake in shares of Cisco Systems in the first quarter worth $27,000. Manning & Napier Advisors LLC boosted its holdings in Cisco Systems by 137.0% during 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. Halbert Hargrove Global Advisors LLC grew its position in Cisco Systems by 142.5% in the third quarter. Halbert Hargrove Global Advisors LLC now owns 257 shares of the network equipment provider's stock valued at $28,000 after purchasing an additional 151 shares in the last quarter. Finally, Kings Path Partners LLC bought a new position in Cisco Systems in the third quarter valued at $31,000. Institutional investors own 73.33% of the company's stock.

Insiders Place Their Bets

In related news, EVP Deborah L. Stahlkopf sold 6,487 shares of the firm's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $111.53, for a total value of $723,495.11. Following the transaction, the executive vice president owned 167,116 shares in the company, valued at approximately $18,638,447.48. This trade represents a 3.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 312 shares of the company's stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $110.18, for a total transaction of $34,376.16. Following the sale, the executive vice president directly owned 127,661 shares of the company's stock, valued at $14,065,688.98. This represents a 0.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 44,869 shares of company stock valued at $5,005,620 in the last quarter. Company insiders own 0.01% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have commented on CSCO. Sanford C. Bernstein began coverage on shares of Cisco Systems in a research report on Wednesday, September 30th. They set a "market perform" rating and a $110.00 price target on the stock. HSBC cut Cisco Systems from a "buy" rating to a "hold" rating and decreased their price objective for the company from $137.00 to $120.00 in a report on Friday, August 14th. Morgan Stanley lifted their target price on Cisco Systems from $130.00 to $135.00 and gave the company an "overweight" rating in a research report on Thursday, August 13th. KeyCorp upped their target price on Cisco Systems from $130.00 to $135.00 and gave the stock an "overweight" rating in a report on Thursday, August 13th. Finally, Freedom Capital raised Cisco Systems from a "hold" rating to a "strong-buy" rating in a research 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 company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $128.52.

Cisco Systems Stock Down 2.2%

Cisco Systems stock opened at $104.89 on Friday. Cisco Systems, Inc. has a twelve month low of $70.06 and a twelve month high of $130.37. The company's 50-day moving average price is $110.28 and its two-hundred day moving average price is $109.88. 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 has a market cap of $413.54 billion, a P/E ratio of 31.40, a P/E/G ratio of 2.23 and a beta of 0.99.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, beating analysts' consensus estimates of $1.17 by $0.05. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%. The firm 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 firm posted $0.99 EPS. The company's revenue for the quarter 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. As a group, analysts expect that Cisco Systems, Inc. will post 4.42 EPS for the current year.

Cisco Systems Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 21st. Stockholders of record on Friday, October 2nd were given a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date was Friday, October 2nd. Cisco Systems's payout ratio is presently 50.30%.

More Cisco Systems News

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

• Positive Sentiment: Cisco unveiled high-density AI networking products, including Silicon One G302 switches and a planned 400Gb/s-per-lane optical module developed with NVIDIA, TE Connectivity and Amphenol. Expanded SONiC support and AI-operations security tools strengthen the company’s effort to capture spending across networking hardware, silicon, optics and software. Did AI Networking Expansion Just Shift Cisco's Investment Narrative?
• Positive Sentiment: Longer-term bullish commentary argues that Cisco can benefit from continued AI data-center investment and from software that helps customers monitor AI usage and control rising model-inference costs. Cisco: Can It Profit From Helping Customers Spend Less on AI?
• Neutral Sentiment: ETF funds were net sellers of CSCO on October 20, adding a technical source of pressure that does not necessarily reflect a change in Cisco’s operating outlook. ETFs Are Net Sellers of Cisco
• Neutral Sentiment: Analysts continue to debate whether Cisco’s AI opportunity represents a durable shift from its traditional enterprise networking business. Comparisons with Arista Networks highlight the importance of execution, data-center design wins and margins. Arista Networks Versus Cisco Systems
• Negative Sentiment: The latest decline reflects Cisco falling more than the broader market, while commentary from Seeking Alpha characterized the stock’s AI narrative as overbought and maintained a Hold view. At a price-to-earnings ratio above 31, investors may be demanding substantial AI growth before awarding the shares a higher valuation. Here's Why Cisco Systems Fell More Than the Broader Market

Cisco Systems Company 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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