Cisco Systems, Inc. $CSCO Stock: Retirement Systems of Alabama Trims Holdings

Key Points

• Retirement Systems of Alabama reduced its Cisco stake by 6.8% in the third quarter, selling 143,791 shares and retaining about 1.97 million shares valued at roughly $211.9 million.
• Cisco reported quarterly earnings of $1.22 per share and revenue of $17.25 billion, beating analyst estimates; revenue grew 17.6% year over year. The company also declared a quarterly dividend of $0.42 per share.
• Analyst views were mixed: Cisco had a “Moderate Buy” consensus and an average price target of $127.87, while HSBC and Morgan Stanley lowered their ratings and cut price targets to $120.

Retirement Systems of Alabama cut its stake in shares of Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 6.8% in the 3rd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 1,969,076 shares of the network equipment provider's stock after selling 143,791 shares during the period. Cisco Systems comprises approximately 0.6% of Retirement Systems of Alabama's investment portfolio, making the stock its 27th biggest position. Retirement Systems of Alabama's holdings in Cisco Systems were worth $211,932,000 as of its most recent filing with the SEC.

A number of other large investors also recently modified their holdings of the company. Palacios Wealth Management LLC lifted its holdings in Cisco Systems by 24.1% during the 3rd quarter. Palacios Wealth Management LLC now owns 6,482 shares of the network equipment provider's stock worth $698,000 after buying an additional 1,259 shares during the period. Clear Wave Wealth Management LLC grew its position in shares of Cisco Systems by 5.7% in the 3rd quarter. Clear Wave Wealth Management LLC now owns 5,963 shares of the network equipment provider's stock valued at $642,000 after buying an additional 323 shares during the last quarter. Kohmann Bosshard Financial Services LLC grew its position in shares of Cisco Systems by 17.1% in the 3rd quarter. Kohmann Bosshard Financial Services LLC now owns 7,345 shares of the network equipment provider's stock valued at $790,000 after buying an additional 1,073 shares during the last quarter. Fulcrum Asset Management LLP increased its stake in shares of Cisco Systems by 24.1% in the third quarter. Fulcrum Asset Management LLP now owns 25,836 shares of the network equipment provider's stock valued at $2,763,000 after buying an additional 5,024 shares during the period. Finally, Allspring Global Investments Holdings LLC increased its stake in shares of Cisco Systems by 12.2% in the third quarter. Allspring Global Investments Holdings LLC now owns 914,587 shares of the network equipment provider's stock valued at $99,470,000 after buying an additional 99,089 shares during the period. 73.33% of the stock is currently owned by institutional investors.

Insider Activity

In other news, CEO Charles Robbins sold 21,628 shares of Cisco Systems stock in a transaction on 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 sale, the chief executive officer owned 602,710 shares in the company, valued at $67,226,273.40. The trade was a 3.46% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,760 shares of the business's stock in a transaction on Friday, August 14th. The shares were sold at an average price of $112.46, for a total transaction of $310,389.60. Following the transaction, the executive vice president owned 165,276 shares in the company, valued at $18,586,938.96. The trade was a 1.64% 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. Company insiders own 0.01% of the company's stock.

Cisco Systems Stock Performance

CSCO stock opened at $98.65 on Tuesday. The stock has a 50-day moving average price of $108.59 and a 200-day moving average price of $101.75. Cisco Systems, Inc. has a 1-year low of $71.10 and a 1-year high of $130.37. 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 cap of $388.94 billion, a PE ratio of 29.54, a price-to-earnings-growth ratio of 2.16 and a beta of 1.01.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last announced its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 EPS 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 company had revenue of $17.25 billion for the quarter, compared to analyst estimates of $16.84 billion. During the same quarter in the prior year, the company earned $0.99 EPS. The firm's revenue for the quarter 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, equities research analysts expect that Cisco Systems, Inc. will post 4.42 earnings per share for the current year.

Cisco Systems Dividend Announcement

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. The ex-dividend date of this dividend was Friday, October 2nd. This represents a $1.68 annualized dividend and a yield of 1.7%. Cisco Systems's payout ratio is 50.30%.

Analysts Set New Price Targets

Several brokerages recently commented on CSCO. HSBC cut Cisco Systems from a "buy" rating to a "hold" rating and reduced their target price for the company from $137.00 to $120.00 in a report on Friday, August 14th. Weiss Ratings restated a "buy (b)" rating on shares of Cisco Systems in a report on Wednesday, August 26th. Sanford C. Bernstein initiated coverage on shares of Cisco Systems in a report on Wednesday, September 30th. They set a "market perform" rating and a $110.00 price target for the company. 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, Morgan Stanley lowered shares of Cisco Systems from an "overweight" rating to an "equal weight" rating and reduced their price objective for the company from $135.00 to $120.00 in a research note on Thursday, November 5th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Cisco Systems has a consensus rating of "Moderate Buy" and an average target price of $127.87.

More Cisco Systems News

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

• Positive Sentiment: Cisco is expanding its AI-security tools: AI Defense will use Anthropic’s Claude Mythos for adversarial testing of AI applications and agents, alongside new Splunk Agent Observability and Cisco IQ capabilities. The launch could strengthen Cisco’s position as businesses seek ways to secure and monitor AI agents. Cisco AI security announcement
• Positive Sentiment: One analysis suggests Cisco shares could be undervalued by about 15%, offering a potential valuation argument for investors. Cisco valuation analysis
• Neutral Sentiment: The November 12 earnings report is the main near-term catalyst. Investors will look for evidence that AI infrastructure demand supports Cisco’s growth and its stated $7.5 billion AI target; options trading points to expectations of a potentially large post-earnings move. Cisco earnings and options outlook
• Negative Sentiment: Risk appetite remains a headwind: reports cite a roughly 20% decline in CSCO and a $145 billion loss in market value from its peak, while ETFs were net sellers of $64.1 million in shares on November 5. ETF flows for Cisco
• Negative Sentiment: A Morgan Stanley analyst reportedly moved Cisco to Equal-weight, adding to caution ahead of results. Investors may also be wary if earnings fail to reassure the market about AI-related demand. Cisco earnings expectations and AI concerns

Cisco Systems Profile

Cisco Systems, Inc develops networking, cybersecurity, collaboration and observability technologies for businesses, governments and other organizations. Its products include routers, switches, wireless systems and data center infrastructure, along with security software and services that help organizations connect and protect their networks.

The company also provides collaboration tools through its Webex platform and observability capabilities through its software offerings, including technology from Splunk, which Cisco acquired in 2024.

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