Cisco Systems, Inc. $CSCO Stock: Nisa Investment Advisors LLC Reduces Position

Key Points

• Nisa Investment Advisors reduced its Cisco position by 4.9% in the third quarter, selling 61,435 shares and retaining 1.21 million shares valued at approximately $129.7 million. Institutional investors collectively own 73.33% of Cisco.
• AI infrastructure is a major growth catalyst for Cisco. New high-capacity networking platforms, optical technology and partnerships with NVIDIA and other suppliers could support demand, while recent earnings exceeded expectations with revenue up 17.6% year over year.
• Valuation risks temper the outlook despite bullish analyst sentiment. Cisco pays a quarterly dividend of $0.42, while analysts maintain a “Moderate Buy” consensus with an average price target of $128.52; some caution that the stock’s rally and potential hardware-margin pressure limit further upside.

Nisa Investment Advisors LLC trimmed its position in shares of Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 4.9% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 1,205,247 shares of the network equipment provider's stock after selling 61,435 shares during the period. Cisco Systems accounts for approximately 0.4% of Nisa Investment Advisors LLC's portfolio, making the stock its 20th largest holding. Nisa Investment Advisors LLC's holdings in Cisco Systems were worth $129,721,000 at the end of the most recent reporting period.

A number of other large investors have also bought and sold shares of the company. Bridgewater Advisors Inc. purchased a new stake in Cisco Systems during the 2nd quarter worth about $6,442,000. Beacon Pointe Advisors LLC bought a new position in Cisco Systems in the 2nd quarter worth about $60,009,000. Western Wealth Management LLC grew its holdings in Cisco Systems by 60.5% during the 1st quarter. Western Wealth Management LLC now owns 76,372 shares of the network equipment provider's stock valued at $5,926,000 after buying an additional 28,792 shares in the last quarter. ABN AMRO Bank N.V. purchased a new position in Cisco Systems during the 2nd quarter valued at about $19,114,000. Finally, USS Investment Management Ltd increased its position in shares of Cisco Systems by 1.8% during the first quarter. USS Investment Management Ltd now owns 686,466 shares of the network equipment provider's stock valued at $53,253,000 after buying an additional 12,251 shares during the period. 73.33% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Cisco Systems

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

• Positive Sentiment: New AI networking platforms strengthen Cisco’s growth story. Cisco introduced 51.2-terabit and 102.4-terabit networking systems powered by its Silicon One chips, along with 1.6T optical modules and liquid-cooling technology for high-density data centers. Its collaboration with NVIDIA, TE Connectivity and Amphenol on next-generation optical connectivity could help Cisco capture more spending from the expanding AI infrastructure buildout. Cisco Systems Unveiled 102.4T AI Networking Platforms
• Positive Sentiment: AI demand is supporting an optimistic earnings setup. A preview article cited Cisco’s guidance for approximately 21% year-over-year revenue growth and 33% EPS growth, alongside recent revenue and earnings beats. Agentic AI adoption and infrastructure contracts, including international opportunities such as Bell Canada, are viewed as longer-term catalysts. Cisco Earnings Preview
• Positive Sentiment: Industry commentary supports continued AI capital spending. Strategist Tom Lee argued that the AI investment cycle may have substantial room to run, with networking, power, cooling and security among the beneficiaries. This reinforces the bullish case that Cisco’s AI order momentum could develop into a broader networking supercycle. Tom Lee on AI Stocks and Cisco
• Positive Sentiment: Splunk’s observability research highlights a potential software opportunity. Cisco reported that enterprises are struggling to monitor AI agents and control rising telemetry and AI costs. Growing demand for observability, security and operational predictability could support cross-selling through Cisco’s Splunk business. Splunk State of Observability 2026
• Neutral Sentiment: World Wide Technology’s new Cisco Secure AI Infrastructure specialization adds partner validation, but the direct near-term revenue impact is unclear. World Wide Technology Achieves Cisco Specialization
• Negative Sentiment: Valuation and margin risks remain important headwinds. One analyst downgraded Cisco to Hold after a substantial year-to-date rally, arguing that the shares are near fair value and that hardware mix could pressure gross margins. Elevated price-to-sales levels may also reduce the stock’s sensitivity to positive AI news. Cisco Valuation and Technical Support

Cisco Systems Price Performance

Cisco Systems stock opened at $106.71 on Wednesday. The stock has a market cap of $420.71 billion, a price-to-earnings ratio of 31.95, a PEG ratio of 2.22 and a beta of 0.99. 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 business has a 50-day simple moving average of $110.78 and a 200 day simple moving average of $109.50. Cisco Systems, Inc. has a 52 week low of $69.85 and a 52 week high of $130.37.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share 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 firm had revenue of $17.25 billion for the quarter, compared to analysts' expectations of $16.84 billion. During the same quarter last year, the firm posted $0.99 EPS. The company's revenue 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. 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 business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 21st. Investors of record on Friday, October 2nd will be given a $0.42 dividend. This represents a $1.68 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Friday, October 2nd. Cisco Systems's dividend payout ratio is 50.30%.

Analyst Upgrades and Downgrades

CSCO has been the topic of a number of recent analyst reports. Truist Financial increased their price target on shares of Cisco Systems from $125.00 to $140.00 and gave the stock a "buy" rating in a report on Thursday, August 13th. Wells Fargo & Company boosted their price objective on shares of Cisco Systems from $130.00 to $150.00 and gave the company an "overweight" rating in a research note on Thursday, August 13th. Piper Sandler decreased their target price on shares of Cisco Systems from $132.00 to $125.00 and set a "neutral" rating on the stock in a report on Tuesday, September 22nd. Morgan Stanley upped their target price on shares of 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 upgraded shares of Cisco Systems from a "hold" rating to a "strong-buy" rating in a research note on Sunday, August 16th. Three research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, Cisco Systems currently has an average rating of "Moderate Buy" and an average target price of $128.52.

Insider Buying and Selling

In other Cisco Systems news, EVP Deborah L. Stahlkopf sold 6,487 shares of Cisco Systems stock in a transaction that occurred 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 in the company, valued at $18,638,447.48. The trade was a 3.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through 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 Cisco Systems 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 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. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 44,869 shares of company stock valued at $5,005,620 in the last 90 days. 0.01% of the stock is owned by company insiders.

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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