Cisco Systems, Inc. $CSCO Stock Sold by Inscription Capital LLC

Key Points

• Inscription Capital cut its Cisco stake by 23.5% in the third quarter, selling 10,571 shares and retaining 34,495 shares valued at about $3.7 million. Institutional investors collectively own 73.33% of the company.
• Cisco’s latest reported quarter beat estimates, with EPS of $1.22 versus $1.17 expected and revenue of $17.25 billion, up 17.6% year over year. The company also declared a quarterly dividend of $0.42 per share.
• Morgan Stanley downgraded Cisco to Equal Weight and lowered its price target to $120, citing concern that AI-related sales could bring a less profitable product mix and pressure margins. Cisco shares also faced broader weakness in AI infrastructure stocks.

Inscription Capital LLC decreased its stake in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 23.5% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 34,495 shares of the network equipment provider's stock after selling 10,571 shares during the period. Inscription Capital LLC's holdings in Cisco Systems were worth $3,713,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. Quest 10 Wealth Builders Inc. raised its stake in Cisco Systems by 48.8% during the 3rd quarter. Quest 10 Wealth Builders Inc. now owns 1,183 shares of the network equipment provider's stock valued at $127,000 after purchasing an additional 388 shares during the last quarter. TFB Advisors LLC bought a new stake in Cisco Systems in the 3rd quarter valued at $241,000. Chicago Partners Investment Group LLC boosted its holdings in Cisco Systems by 11.8% in the 3rd quarter. Chicago Partners Investment Group LLC now owns 48,505 shares of the network equipment provider's stock valued at $5,166,000 after purchasing an additional 5,103 shares during the period. Richardson Financial Services Inc. grew its position in Cisco Systems by 10.7% in the 3rd quarter. Richardson Financial Services Inc. now owns 5,744 shares of the network equipment provider's stock worth $618,000 after purchasing an additional 555 shares during the last quarter. Finally, Verity Asset Management Inc. grew its position in Cisco Systems by 5.0% in the 3rd quarter. Verity Asset Management Inc. now owns 5,936 shares of the network equipment provider's stock worth $639,000 after purchasing an additional 281 shares during the last quarter. Institutional investors own 73.33% of the company's stock.

Cisco Systems Stock Performance

Shares of NASDAQ CSCO opened at $95.72 on Friday. The business has a fifty day simple moving average of $109.18 and a 200 day simple moving average of $101.53. 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 $377.38 billion, a price-to-earnings ratio of 28.66, a PEG ratio of 2.16 and a beta of 1.01. Cisco Systems, Inc. has a one year low of $70.54 and a one year high of $130.37.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, topping 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 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 quarterly 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. Sell-side analysts expect that Cisco Systems, Inc. will post 4.42 EPS for the current year.

Cisco Systems Dividend Announcement

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

Trending Headlines about Cisco Systems

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 Ratings Changes

Several research analysts have recently issued reports on the stock. KeyCorp boosted their price objective on shares of Cisco Systems from $130.00 to $135.00 and gave the stock an "overweight" rating in a report on Thursday, August 13th. Weiss Ratings reiterated a "buy (b)" rating on shares of Cisco Systems in a research note on Wednesday, August 26th. UBS Group increased their target price on shares of Cisco Systems from $132.00 to $138.00 and gave the company a "buy" rating in a research note on Thursday, August 13th. Sanford C. Bernstein initiated coverage on Cisco Systems in a research report on Wednesday, September 30th. They set a "market perform" rating and a $110.00 target price on the stock. Finally, HSBC lowered Cisco Systems from a "buy" rating to a "hold" rating and lowered their price target for the company from $137.00 to $120.00 in a research note on Friday, August 14th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $127.87.

Insider Activity at Cisco Systems

In other news, EVP Deborah Stahlkopf sold 6,487 shares of the firm's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $111.53, for a total transaction of $723,495.11. Following the completion of the transaction, the executive vice president directly owned 167,116 shares of the company's stock, valued at approximately $18,638,447.48. This trade represents a 3.74% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through 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 Cisco Systems stock in a transaction dated 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 sale, the chief executive officer owned 602,710 shares in the company, valued at approximately $67,226,273.40. This trade represents a 3.46% 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. Insiders sold 44,869 shares of company stock worth $5,005,620 in the last ninety days. Company insiders own 0.01% of the company's stock.

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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