Cisco Systems, Inc. $CSCO Stock Position Boosted by Kestra Advisory Services LLC

Key Points

• Kestra Advisory Services increased its Cisco stake by 13% in the third quarter, adding 79,691 shares to hold 692,444 shares valued at about $74.5 million. Institutional investors own 73.33% of the stock.
• Cisco’s latest reported quarter beat analyst expectations, with EPS of $1.22 versus $1.17 expected and revenue of $17.25 billion versus $16.84 billion; revenue rose 17.6% year over year.
• Morgan Stanley downgraded Cisco to Equal Weight and cut its price target to $120, citing concern that AI-related growth could shift sales toward lower-margin products and pressure earnings. Cisco’s data-center networking position and new managed-networking sales channel were noted as potential growth supports.

Kestra Advisory Services LLC lifted its holdings in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 13.0% in the 3rd quarter, according to its most recent 13F filing with the SEC. The firm owned 692,444 shares of the network equipment provider's stock after purchasing an additional 79,691 shares during the quarter. Kestra Advisory Services LLC's holdings in Cisco Systems were worth $74,528,000 as of its most recent SEC filing.

A number of other large investors have also bought and sold shares of CSCO. Cozad Asset Management Inc. lifted its stake in Cisco Systems by 0.3% in the first quarter. Cozad Asset Management Inc. now owns 26,203 shares of the network equipment provider's stock valued at $2,033,000 after buying an additional 87 shares in the last quarter. Dogwood Wealth Management LLC increased its position in shares of Cisco Systems by 3.9% during the second quarter. Dogwood Wealth Management LLC now owns 2,413 shares of the network equipment provider's stock worth $283,000 after acquiring an additional 90 shares in the last quarter. Green Ridge Wealth Planning LLC increased its position in shares of Cisco Systems by 1.5% during the third quarter. Green Ridge Wealth Planning LLC now owns 6,017 shares of the network equipment provider's stock worth $648,000 after acquiring an additional 90 shares in the last quarter. August Group Capital Ltd raised its holdings in shares of Cisco Systems by 2.0% during the second quarter. August Group Capital Ltd now owns 4,723 shares of the network equipment provider's stock worth $555,000 after acquiring an additional 91 shares during the period. Finally, Financial Insights Inc. raised its holdings in shares of Cisco Systems by 1.5% during the first quarter. Financial Insights Inc. now owns 6,220 shares of the network equipment provider's stock worth $483,000 after acquiring an additional 92 shares during the period. 73.33% of the stock is owned by institutional investors.

Cisco Systems Price Performance

Shares of CSCO opened at $95.72 on Friday. The stock has a market capitalization of $377.38 billion, a P/E ratio of 28.66, a P/E/G ratio of 2.16 and a beta of 1.01. Cisco Systems, Inc. has a twelve month low of $70.54 and a twelve month high of $130.37. The company has a 50 day moving average of $109.18 and a 200-day moving average of $101.53. 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 (NASDAQ:CSCO - Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, topping analysts' consensus estimates of $1.17 by $0.05. The business 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 firm's revenue for the quarter was up 17.6% on a year-over-year basis. During the same quarter in the previous 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. As a group, equities research analysts forecast that Cisco Systems, Inc. will post 4.42 EPS for the current fiscal year.

Cisco Systems Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd were paid a $0.42 dividend. This represents a $1.68 annualized dividend and a yield of 1.8%. The ex-dividend date was Friday, October 2nd. Cisco Systems's payout ratio is presently 50.30%.

Key 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

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. Piper Sandler reduced their target price on shares of Cisco Systems from $132.00 to $125.00 and set a "neutral" rating for the company in a research note on Tuesday, September 22nd. Deutsche Bank Aktiengesellschaft initiated coverage on Cisco Systems in a report on Tuesday, September 1st. They set a "buy" rating and a $135.00 target price for the company. Truist Financial lifted their price target on Cisco Systems from $125.00 to $140.00 and gave the company a "buy" rating in a research note on Thursday, August 13th. 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. Finally, Wall Street Zen raised Cisco Systems from a "hold" rating to a "buy" rating in a research report on Sunday, October 11th. Three research 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 company. Based on data from MarketBeat, Cisco Systems has a consensus rating of "Moderate Buy" and an average price target of $127.87.

Insider Activity

In other news, EVP Thimaya K. Subaiya sold 312 shares of the firm's 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 completion of the transaction, the executive vice president owned 127,661 shares in the company, valued at $14,065,688.98. This trade represents a 0.24% decrease in their position. The sale 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, CEO Charles Robbins sold 21,628 shares of the firm's stock in a transaction dated 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 completion of the transaction, the chief executive officer owned 602,710 shares of the company's stock, valued at $67,226,273.40. The trade was a 3.46% 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. Over the last ninety days, insiders sold 44,869 shares of company stock worth $5,005,620. 0.01% of the stock is currently owned by company insiders.

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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