Cisco Systems, Inc. $CSCO Stock: Modera Wealth Management LLC Lowers Stake

Key Points

• Modera Wealth Management cut its Cisco stake by 4.5% in the third quarter, selling 29,560 shares and retaining 624,559 shares valued at approximately $67.2 million. Institutional investors and hedge funds collectively own 73.33% of Cisco.
• Cisco exceeded quarterly expectations, reporting $1.22 in EPS on $17.25 billion in revenue, with revenue up 17.6% year over year. The company also maintains a quarterly dividend of $0.42, equivalent to a 1.6% yield.
• Analyst sentiment remains favorable, with Cisco carrying a “Moderate Buy” consensus rating and an average price target of $128.52, although recent recommendations range from “Hold” to “Overweight.”

Modera Wealth Management LLC reduced its holdings in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 4.5% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 624,559 shares of the network equipment provider's stock after selling 29,560 shares during the quarter. Modera Wealth Management LLC's holdings in Cisco Systems were worth $67,221,000 at the end of the most recent reporting period.

Other hedge funds also recently modified their holdings of the company. State of Wyoming lifted its position in Cisco Systems by 90.0% in the 3rd quarter. State of Wyoming now owns 6,250 shares of the network equipment provider's stock valued at $673,000 after acquiring an additional 2,960 shares in the last quarter. Petros Family Wealth LLC boosted its stake in Cisco Systems by 6.0% in the 3rd quarter. Petros Family Wealth LLC now owns 24,336 shares of the network equipment provider's stock worth $2,619,000 after purchasing an additional 1,383 shares during the period. Arta Finance Wealth Management LLC increased its holdings in Cisco Systems by 26.7% during the 3rd quarter. Arta Finance Wealth Management LLC now owns 4,112 shares of the network equipment provider's stock worth $441,000 after purchasing an additional 866 shares in the last quarter. Whelan Financial increased its holdings in Cisco Systems by 22.0% during the 3rd quarter. Whelan Financial now owns 5,919 shares of the network equipment provider's stock worth $637,000 after purchasing an additional 1,068 shares in the last quarter. Finally, Prosperitas Financial LLC raised its stake in shares of Cisco Systems by 15.4% in the 3rd quarter. Prosperitas Financial LLC now owns 3,786 shares of the network equipment provider's stock valued at $407,000 after purchasing an additional 506 shares during the period. Institutional investors and hedge funds own 73.33% of the company's stock.

Cisco Systems Price Performance

Shares of CSCO opened at $104.51 on Friday. The company has a market cap of $412.04 billion, a price-to-earnings ratio of 31.29, a PEG ratio of 2.26 and a beta of 0.99. Cisco Systems, Inc. has a 1-year low of $70.54 and a 1-year high of $130.37. The company's fifty day simple moving average is $110.00 and its 200 day simple moving average is $101.01. The company has a current ratio of 0.93, a quick ratio of 0.79 and a debt-to-equity ratio of 0.39.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.17 by $0.05. The firm had revenue of $17.25 billion for the quarter, compared to analyst estimates of $16.84 billion. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The company's quarterly revenue was up 17.6% compared to the same quarter last year. During the same period in the prior 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. On average, research analysts forecast that Cisco Systems, Inc. will post 4.42 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 21st. Stockholders of record on Friday, October 2nd were issued 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 of this dividend was Friday, October 2nd. Cisco Systems's dividend payout ratio is presently 50.30%.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on CSCO shares. HSBC lowered Cisco Systems from a "buy" rating to a "hold" rating and cut their price target for the company from $137.00 to $120.00 in a report on Friday, August 14th. UBS Group increased their price objective on Cisco Systems from $132.00 to $138.00 and gave the stock a "buy" rating in a report on Thursday, August 13th. Sanford C. Bernstein started coverage on Cisco Systems in a report on Wednesday, September 30th. They set a "market perform" rating and a $110.00 price objective for the company. Weiss Ratings reissued a "buy (b)" rating on shares of Cisco Systems in a research report on Wednesday, August 26th. Finally, Wells Fargo & Company boosted their target price on Cisco Systems from $130.00 to $150.00 and gave the company an "overweight" rating in a research note on Thursday, August 13th. Three investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $128.52.

Insider Buying and Selling

In related news, insider Jeetendra 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 value of $799,956.90. Following the completion of the sale, the insider directly owned 230,593 shares in the company, valued at approximately $25,727,261.01. This trade represents a 3.02% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya Subaiya sold 312 shares of Cisco Systems stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $110.18, for a total value of $34,376.16. Following the transaction, the executive vice president owned 127,661 shares of the company's stock, valued at $14,065,688.98. The trade was a 0.24% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 44,869 shares of company stock worth $5,005,620 in the last 90 days. 0.01% of the stock is owned by corporate insiders.

Cisco Systems News Summary

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

• Positive Sentiment: AI infrastructure remains a key growth catalyst. Cisco is benefiting from rising hyperscaler demand for networking equipment, while AI workloads, 5G, Wi-Fi 7, and broader connectivity needs support the networking industry’s expansion. Cisco Gains From AI Networking Boom
• Positive Sentiment: Industry research projects the global virtualization-security market will grow from $1.7 billion in 2025 to $4.9 billion by 2032, creating potential demand for Cisco’s security, segmentation, and cloud-native offerings. Virtualization Security Market Report
• Positive Sentiment: Mobile virtualization is projected to reach $21 billion by 2032, with remote work, BYOD, 5G, and tighter data regulations supporting longer-term opportunities for Cisco’s networking and security businesses. Mobile Virtualization Market Report
• Positive Sentiment: Analysts maintain a favorable view ahead of earnings, with a reported consensus price target of $128.52, implying continued confidence in Cisco’s outlook. Cisco Consensus Price Target
• Positive Sentiment: Cisco is experimenting with an AI-assisted rewrite of approximately 98% of its code under a young engineering leader, potentially improving development speed and product productivity, although execution remains unproven. Cisco AI Code Rewrite
• Neutral Sentiment: Cisco’s upcoming report is receiving positive analyst attention after the stock outperformed the broader market, but the preview also raises the bar for results and forward guidance. Cisco Earnings Preview
• Neutral Sentiment: The company’s AI-security and quantum-safe initiatives could strengthen its long-term product portfolio, though the articles provide limited evidence of near-term financial impact. Cisco AI Security and Quantum-Safe Push
• Negative Sentiment: Competitive pressure is increasing: Dell is expanding its AI-security and cyber-resilience capabilities, potentially challenging Cisco in enterprise infrastructure and security markets. Dell Expands AI Security Capabilities
• Negative Sentiment: Recent weakness relative to the broader market suggests investors may be taking profits or demanding stronger earnings and guidance, particularly with CSCO trading at a relatively elevated earnings multiple.

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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