Cisco Systems, Inc. $CSCO Stock Position Lifted by Adams Diversified Equity Fund Inc.

Key Points

• Adams Diversified Equity Fund increased its Cisco position by 12.9% in the third quarter, adding 45,600 shares to hold 399,400 shares valued at approximately $43 million. Institutional investors and hedge funds collectively own 73.33% of Cisco.
• Cisco reported strong quarterly results, with revenue up 17.6% year over year to $17.25 billion and EPS of $1.22, exceeding analyst expectations. The company also pays a quarterly dividend of $0.42, representing a 1.6% yield.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $128.52 target price, while investors remain divided over whether Cisco’s AI networking expansion can justify its valuation. The stock recently traded near $104.89, below its 52-week high of $130.37.

Adams Diversified Equity Fund Inc. increased its holdings in shares of Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 12.9% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 399,400 shares of the network equipment provider's stock after buying an additional 45,600 shares during the period. Cisco Systems comprises 1.3% of Adams Diversified Equity Fund Inc.'s investment portfolio, making the stock its 20th largest holding. Adams Diversified Equity Fund Inc.'s holdings in Cisco Systems were worth $42,987,000 as of its most recent SEC filing.

Other hedge funds also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in Cisco Systems in the 2nd quarter valued at about $42,129,647,000. State Street Corp grew its position in shares of Cisco Systems by 7.0% during the second quarter. State Street Corp now owns 207,106,569 shares of the network equipment provider's stock worth $25,278,492,000 after buying an additional 13,512,872 shares in the last quarter. Bank of America Corp DE acquired a new position in shares of Cisco Systems during the second quarter worth about $5,892,379,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Cisco Systems by 2.7% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 43,450,141 shares of the network equipment provider's stock worth $5,103,654,000 after buying an additional 1,143,106 shares during the period. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Cisco Systems during the second quarter worth approximately $4,714,574,000. 73.33% of the stock is currently owned by institutional investors and hedge funds.

Cisco Systems News Summary

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

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on CSCO. KeyCorp lifted their price target on shares of Cisco Systems from $130.00 to $135.00 and gave the stock an "overweight" rating in a research note on Thursday, August 13th. UBS Group increased their price objective on shares of Cisco Systems from $132.00 to $138.00 and gave the company a "buy" rating in a research report on Thursday, August 13th. Wells Fargo & Company raised their price objective on shares of Cisco Systems from $130.00 to $150.00 and gave the company an "overweight" rating in a report on Thursday, August 13th. Morgan Stanley lifted their price objective on shares of Cisco Systems from $130.00 to $135.00 and gave the stock an "overweight" rating in a research report on Thursday, August 13th. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Cisco Systems in a research note on Wednesday, August 26th. 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 stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $128.52.

Insiders Place Their Bets

In related news, EVP Oliver Tuszik sold 680 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 value of $74,922.40. Following the completion of the sale, the executive vice president directly owned 163,337 shares of the company's stock, valued at $17,996,470.66. This represents a 0.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 the firm's 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 transaction, the executive vice president owned 127,661 shares in the company, valued at $14,065,688.98. This represents a 0.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 44,869 shares of company stock worth $5,005,620. Corporate insiders own 0.01% of the company's stock.

Cisco Systems Stock Down 2.2%

CSCO stock opened at $104.89 on Friday. 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, Inc. has a twelve month low of $70.06 and a twelve month high of $130.37. The company's 50 day moving average is $110.28 and its two-hundred day moving average is $109.88. The stock has a market cap of $413.54 billion, a P/E ratio of 29.23, a PEG 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 earnings per share 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 business had revenue of $17.25 billion during the quarter, compared to the consensus estimate of $16.84 billion. During the same quarter in the previous year, the firm earned $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. Research analysts expect that Cisco Systems, Inc. will post 4.42 earnings per share for the current fiscal year.

Cisco Systems Dividend Announcement

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 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend was Friday, October 2nd. Cisco Systems's payout ratio is presently 50.30%.

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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