Cisco Systems, Inc. $CSCO Stock: TD Waterhouse Canada Inc. Lowers Holdings

Key Points

• TD Waterhouse Canada reduced its Cisco position by 20.5% in the third quarter, selling 71,024 shares and retaining 274,599 shares worth approximately $31.9 million. Institutional investors and hedge funds collectively own 73.33% of the company.
• Cisco reported strong quarterly results, with adjusted earnings of $1.22 per share and revenue of $17.25 billion, up 17.6% year over year. Its collaboration with NVIDIA on 400G optical standards for AI data centers could further support networking demand.
• Analysts maintain a generally positive outlook, 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, equivalent to a 1.6% annualized yield.

TD Waterhouse Canada Inc. reduced its position in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 20.5% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 274,599 shares of the network equipment provider's stock after selling 71,024 shares during the quarter. TD Waterhouse Canada Inc.'s holdings in Cisco Systems were worth $31,879,000 at the end of the most recent reporting period.

A number of other large investors have also made changes to their positions in the business. Networth Advisors LLC grew its stake in Cisco Systems by 276.4% during the 1st quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider's stock worth $26,000 after buying an additional 246 shares during the last quarter. Financial Life Planners acquired a new position in Cisco Systems during the 1st quarter valued at about $27,000. Manning & Napier Advisors LLC increased its position in Cisco Systems by 137.0% during the 1st quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider's stock valued at $27,000 after buying an additional 200 shares in the last quarter. Halbert Hargrove Global Advisors LLC raised its stake in Cisco Systems by 142.5% in the third quarter. Halbert Hargrove Global Advisors LLC now owns 257 shares of the network equipment provider's stock valued at $28,000 after buying an additional 151 shares during the last quarter. Finally, Osbon Capital Management LLC purchased a new stake in Cisco Systems in the fourth quarter valued at about $32,000. 73.33% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, EVP Oliver Tuszik sold 2,760 shares of the firm's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $112.46, for a total value of $310,389.60. Following the completion of the transaction, the executive vice president directly owned 165,276 shares in the company, valued at $18,586,938.96. This trade represents a 1.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 5,832 shares of Cisco Systems stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $111.47, for a total value of $650,093.04. Following the sale, the executive vice president directly owned 128,382 shares of the company's stock, valued at $14,310,741.54. This trade represents a 4.35% 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 ninety days, insiders sold 44,869 shares of company stock valued at $5,005,620. Insiders own 0.01% of the company's stock.

Key Stories Impacting Cisco Systems

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

• Positive Sentiment: AI infrastructure collaboration: Cisco and NVIDIA are developing a 400G optical standard for AI data centers, designed to increase bandwidth density and support an open hardware ecosystem. The initiative could strengthen Cisco’s position in large-scale AI networking. Cisco Backs a New 400G Optical Standard for AI Data Centers
• Positive Sentiment: Strong demand and sales momentum: Cisco’s AI infrastructure spending and campus-network upgrades are supporting demand. Analysts also highlighted the company’s 17.6% year-over-year quarterly sales growth—the fastest pace in roughly a decade—as evidence of improving fundamentals. How Rare Is Cisco’s Record Sales Growth?
• Positive Sentiment: Relative valuation appeal: A comparison with Astera Labs argues that Cisco offers greater potential upside at a lower valuation while benefiting from robust networking demand, though Astera has delivered stronger recent stock performance. ALAB vs. CSCO: Which AI Infrastructure Stock Is a Better Buy?
• Neutral Sentiment: Recurring-revenue question: Investors are assessing whether Cisco can sustain software and support renewals after the current equipment-upgrade cycle slows. Recurring revenue would provide stability, but the articles do not offer new renewal data. Can Software Renewals Outlast the Networking Upgrade Cycle?
• Negative Sentiment: Competitive and headline risks: Arista Networks has outperformed Cisco in AI networking, underscoring competitive concerns. Separately, Cisco’s multimillion-dollar donation to a White House ballroom project could create reputational or political controversy, although it has no direct financial impact disclosed. Nvidia and Cisco Confirm Donations to White House Ballroom

Cisco Systems Trading Down 2.2%

NASDAQ:CSCO opened at $107.39 on Friday. Cisco Systems, Inc. has a 12 month low of $68.95 and a 12 month high of $130.37. The firm has a fifty day simple moving average of $111.38 and a 200-day simple moving average of $108.87. 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 company has a market capitalization of $423.39 billion, a P/E ratio of 32.15, a PEG ratio of 2.24 and a beta of 0.99.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share for the quarter, beating analysts' consensus estimates of $1.17 by $0.05. The firm had revenue of $17.25 billion for the quarter, compared to analyst estimates of $16.84 billion. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The business's quarterly revenue was up 17.6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.99 earnings per share. 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, equities research analysts anticipate that Cisco Systems, Inc. will post 4.42 earnings per share for the current year.

Cisco Systems Announces Dividend

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

Analysts Set New Price Targets

Several equities research analysts have weighed in on CSCO shares. Zacks Research raised Cisco Systems from a "hold" rating to a "strong-buy" rating in a report on Wednesday, September 30th. Wells Fargo & Company boosted their price target on Cisco Systems from $130.00 to $150.00 and gave the stock an "overweight" rating in a research note on Thursday, August 13th. Truist Financial upped their price objective on shares of Cisco Systems from $125.00 to $140.00 and gave the company a "buy" rating in a report on Thursday, August 13th. Rosenblatt Securities upped their price objective on shares of Cisco Systems from $150.00 to $165.00 and gave the company a "buy" rating in a report on Thursday, August 13th. Finally, 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. 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. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $128.52.

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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