Cisco Systems, Inc. $CSCO Stock Position Cut by Confluence Investment Management LLC

Key Points

• Confluence Investment Management cut its Cisco position by 2.5% in the third quarter, selling 21,239 shares and retaining 820,548 shares valued at approximately $88.3 million. Institutional investors still own 73.33% of Cisco.
• Cisco reported quarterly EPS of $1.22 and revenue of $17.25 billion, exceeding estimates, while revenue increased 17.6% year over year. The company also declared a quarterly dividend of $0.42 per share, yielding about 1.6% annually.
• Analyst sentiment remains generally positive, with a “Moderate Buy” consensus and an average price target of $128.52, though ratings and targets vary. Investors are weighing Cisco’s AI-infrastructure momentum against valuation concerns, competition and execution risks.

Confluence Investment Management LLC decreased its position in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 2.5% in the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 820,548 shares of the network equipment provider's stock after selling 21,239 shares during the period. Cisco Systems comprises 1.3% of Confluence Investment Management LLC's investment portfolio, making the stock its 24th biggest position. Confluence Investment Management LLC's holdings in Cisco Systems were worth $88,316,000 at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. BlackRock Inc. acquired a new position in Cisco Systems in the 2nd quarter worth about $42,129,647,000. State Street Corp increased its position in shares of Cisco Systems by 7.0% in the second quarter. State Street Corp now owns 207,106,569 shares of the network equipment provider's stock valued at $25,278,492,000 after buying an additional 13,512,872 shares in the last quarter. Invesco Ltd. raised its stake in shares of Cisco Systems by 11.6% during the 4th quarter. Invesco Ltd. now owns 59,836,782 shares of the network equipment provider's stock worth $4,609,227,000 after buying an additional 6,224,062 shares during the period. Auto Owners Insurance Co raised its stake in shares of Cisco Systems by 8,718.3% during the 4th quarter. Auto Owners Insurance Co now owns 51,952,421 shares of the network equipment provider's stock worth $400,190,000 after buying an additional 51,363,281 shares during the period. Finally, Franklin Resources Inc. lifted its position in shares of Cisco Systems by 18.0% during the 4th quarter. Franklin Resources Inc. now owns 50,320,905 shares of the network equipment provider's stock valued at $3,876,219,000 after buying an additional 7,679,422 shares in the last quarter. 73.33% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, insider Jeetendra Patel sold 7,170 shares of the company's stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $111.57, for a total value of $799,956.90. Following the transaction, the insider directly owned 230,593 shares in the company, valued at approximately $25,727,261.01. This represents a 3.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya Subaiya sold 312 shares of the stock in a transaction that occurred on 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 of the company's stock, valued at $14,065,688.98. The trade was a 0.24% 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. In the last quarter, insiders have sold 44,869 shares of company stock worth $5,005,620. 0.01% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on CSCO shares. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Cisco Systems in a report on Wednesday, August 26th. Rosenblatt Securities lifted their price objective on Cisco Systems from $150.00 to $165.00 and gave the stock a "buy" rating in a report on Thursday, August 13th. Sanford C. Bernstein initiated coverage on shares of Cisco Systems in a report on Wednesday. They set a "market perform" rating and a $110.00 target price for the company. HSBC downgraded shares of Cisco Systems from a "buy" rating to a "hold" rating and cut their price objective for the company from $137.00 to $120.00 in a report on Friday, August 14th. Finally, Truist Financial boosted their target price on Cisco Systems from $125.00 to $140.00 and gave the stock a "buy" rating in a report on Thursday, August 13th. Two analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $128.52.

Key Headlines Impacting Cisco Systems

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

• Positive Sentiment: Cisco reportedly delivered its fifth consecutive earnings beat, while AI-infrastructure orders accumulated faster than Wall Street expected. The stock remains well below its 52-week high, supporting an argument that the AI opportunity is not fully reflected in the valuation. The Boring Tech Stock With an AI Tailwind Has 17% Upside
• Positive Sentiment: Cisco and Bell Canada agreed to develop sovereign AI infrastructure for Canada, combining Bell’s data centers and network operations with Cisco’s AI, security, observability and critical-infrastructure technologies. The memorandum could strengthen Cisco’s position in regulated markets, although it does not yet include disclosed revenue commitments. Bell and Cisco to collaborate on sovereign AI infrastructure for Canada
• Positive Sentiment: Cisco will distribute a quarterly dividend of $0.42 per share on October 21, reinforcing the stock’s appeal to income investors. Broader growth in industrial-control-system security also offers a potential long-term tailwind for Cisco’s cybersecurity business. Cisco Systems to Distribute Quarterly Dividend
• Neutral Sentiment: Bernstein initiated coverage with a “market perform” rating and a $110 price target, implying limited near-term upside. The rating suggests analysts see balanced potential rather than a decisive catalyst. Bernstein initiates coverage of Cisco Systems at market perform
• Negative Sentiment: Piper Sandler lowered its Cisco price target to $125, adding pressure after the stock’s strong run. Commentary also highlights that AI represented only about 6% of fiscal 2026 revenue, meaning investors need sustained growth across Cisco’s larger networking and security businesses to justify its elevated valuation. Piper Sandler cuts target for Cisco Systems stock
• Negative Sentiment: A report that Cisco’s operations platform is facing roughly 4,100 daily alerts underscores a potential bottleneck in managing AI-driven complexity. Separately, concerns about price competition from Chinese suppliers and open-weight AI models could pressure margins and slow the AI growth narrative. Cisco Stock Slips as 4,100 Daily Alerts Force AgenticOps

Cisco Systems Trading Up 0.4%

Shares of CSCO stock traded up $0.45 on Thursday, hitting $108.08. 4,054,147 shares of the stock traded hands, compared to its average volume of 22,585,256. The firm's 50-day moving average price is $112.12 and its two-hundred day moving average price is $106.19. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.79 and a current ratio of 0.93. The stock has a market capitalization of $426.12 billion, a PE ratio of 32.34, a PEG ratio of 2.24 and a beta of 1.00. Cisco Systems, Inc. has a twelve month low of $66.81 and a twelve month high of $130.37.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its quarterly earnings data 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. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The firm had revenue of $17.25 billion during the quarter, compared to analysts' expectations of $16.84 billion. During the same period last year, the business earned $0.99 earnings per share. Cisco Systems'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. As a group, analysts anticipate that Cisco Systems, Inc. will post 4.41 EPS for the current year.

Cisco Systems Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 21st. Stockholders of record on Friday, October 2nd will be issued a dividend of $0.42 per share. The ex-dividend date is Friday, October 2nd. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.6%. Cisco Systems's dividend payout ratio (DPR) is currently 50.30%.

Cisco Systems Profile

Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration, observability and data center solutions. Its products and services help businesses, governments, educational institutions and other organizations connect users and devices, manage infrastructure, protect digital environments and support cloud-based operations.

Cisco's portfolio includes routers and switches, wireless networking equipment, network management software, firewalls, identity and access tools, endpoint security products, collaboration applications and observability platforms.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.