Cisco Systems, Inc. $CSCO Stock Purchased by Davis Capital Management

Key Points

• Davis Capital Management increased its Cisco stake by 38.3% in the third quarter, bringing its holdings to 37,765 shares valued at approximately $4.1 million. Institutional investors and hedge funds collectively own 73.33% of Cisco.
• Cisco reported quarterly EPS of $1.22 and revenue of $17.25 billion, beating analyst estimates, while revenue grew 17.6% year over year. AI infrastructure demand and new agentic AI products are supporting the growth outlook, though competition and valuation remain concerns.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $128.52. Cisco also declared a quarterly dividend of $0.42 per share, representing a 1.5% annualized yield.

Davis Capital Management boosted its holdings in shares of Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 38.3% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 37,765 shares of the network equipment provider's stock after purchasing an additional 10,458 shares during the quarter. Cisco Systems makes up 2.5% of Davis Capital Management's holdings, making the stock its 7th largest position. Davis Capital Management's holdings in Cisco Systems were worth $4,065,000 as of its most recent SEC filing.

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

Insider Activity

In other Cisco Systems news, insider Jeetendra I. Patel sold 7,170 shares of Cisco Systems stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $111.57, for a total transaction of $799,956.90. Following the completion of the sale, the insider directly owned 230,593 shares in the company, valued at $25,727,261.01. This trade represents a 3.02% decrease in their ownership of the stock. 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 business's stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $111.54, for a total transaction of $2,412,387.12. Following the completion of the sale, the chief executive officer directly owned 602,710 shares in the company, valued at $67,226,273.40. This trade represents a 3.46% 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. In 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 corporate insiders.

Key Cisco Systems News

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

• Positive Sentiment: AI infrastructure demand remains a key catalyst. Cisco is reportedly seeing substantial AI infrastructure orders and has delivered its fifth consecutive earnings beat, supporting the view that networking demand could propel the company into a new growth phase. Cisco Could Be Entering a New Growth Phase
• Positive Sentiment: New agentic AI products expand Cisco’s growth story. At WebexOne 2026, Cisco introduced AI capabilities across Webex, workplace management and customer experience, including Claude-powered agents that can analyze data, create content and execute tasks using enterprise context. A Google Meet partnership for Cisco devices and RoomOS 27 are also intended to strengthen its collaboration business. Cisco Unveils New Agentic Collaboration Experiences
• Positive Sentiment: Channel and security developments add incremental support. Supermicro servers are entering Cisco’s AI Factory channel, potentially broadening the company’s AI infrastructure reach, while Cisco also added a FIPS-validated post-quantum security application. Cisco Stock and Supermicro AI Factory Channel
• Neutral Sentiment: Valuation is limiting enthusiasm. Analysts see further upside if AI orders translate into durable revenue and profit growth, but the recent rally may already reflect much of that opportunity, leaving less room for error. The Case for Waiting on Cisco Stock
• Negative Sentiment: Investors remain concerned about execution and competitive pressure. Cisco must demonstrate that AI demand can produce sustained growth without margin deterioration, while competition from networking specialists such as Arista adds uncertainty to the broader AI networking opportunity.

Analyst Upgrades and Downgrades

A number of brokerages have commented on CSCO. UBS Group increased their target price on Cisco Systems from $132.00 to $138.00 and gave the company a "buy" rating in a report on Thursday, August 13th. HSBC lowered Cisco Systems from a "buy" rating to a "hold" rating and decreased their price objective for the company from $137.00 to $120.00 in a report on Friday, August 14th. Piper Sandler dropped their target price on shares of Cisco Systems from $132.00 to $125.00 and set a "neutral" rating for the company in a report on Tuesday, September 22nd. Freedom Capital upgraded shares of Cisco Systems from a "hold" rating to a "strong-buy" rating in a research report on Sunday, August 16th. Finally, Wells Fargo & Company raised their price target on shares of Cisco Systems from $130.00 to $150.00 and gave the stock an "overweight" rating in a research note on Thursday, August 13th. Three research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $128.52.

Cisco Systems Trading Down 2.1%

CSCO stock traded down $2.50 during trading on Thursday, reaching $114.89. 12,955,367 shares of the stock were exchanged, compared to its average volume of 22,499,215. The company has a current ratio of 0.93, a quick ratio of 0.79 and a debt-to-equity ratio of 0.39. The firm has a market capitalization of $452.96 billion, a price-to-earnings ratio of 34.40, a P/E/G ratio of 2.47 and a beta of 0.99. The business has a 50 day moving average price of $112.11 and a 200-day moving average price of $107.43. Cisco Systems, Inc. has a 1 year low of $66.81 and a 1 year high of $130.37.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last announced its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.17 by $0.05. The business had revenue of $17.25 billion during the quarter, compared to the consensus estimate of $16.84 billion. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The business's revenue was up 17.6% compared to the same quarter last year. During the same quarter last year, the firm earned $0.99 EPS. 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 predict that Cisco Systems, Inc. will post 4.41 earnings per share for the current year.

Cisco Systems Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 21st. Stockholders of record on Friday, October 2nd will be paid a $0.42 dividend. This represents a $1.68 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, October 2nd. Cisco Systems's dividend payout ratio is 50.30%.

About Cisco Systems

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.

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