Clearstead Trust LLC Purchases New Holdings in Cisco Systems, Inc. $CSCO

Key Points

• Clearstead Trust LLC purchased 22,287 Cisco shares worth approximately $2.6 million in the second quarter. Institutional investors and hedge funds collectively own 73.33% of the company.
• Cisco exceeded quarterly expectations with $1.22 in EPS and $17.25 billion in revenue, while revenue rose 17.6% year over year. Management’s upbeat fiscal 2027 outlook is supported by accelerating AI infrastructure demand, though analysts remain concerned about margin pressure from lower-margin hardware.
• CSCO recently traded at $111.68, below its 50-day average, while analysts maintain a “Moderate Buy” consensus and an average price target of $129.43. Cisco also declared a quarterly dividend of $0.42 per share, representing a 1.5% annualized yield.

Clearstead Trust LLC purchased a new stake in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 22,287 shares of the network equipment provider's stock, valued at approximately $2,618,000.

Other institutional investors have also recently made changes to their positions in the company. Intesa Sanpaolo Wealth Management bought a new position in Cisco Systems during the fourth quarter worth about $25,000. MidAtlantic Capital Management Inc. bought a new stake in Cisco Systems in the fourth quarter valued at approximately $25,000. Networth Advisors LLC lifted its position in shares of Cisco Systems by 276.4% in the first quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider's stock valued at $26,000 after buying an additional 246 shares during the last quarter. Manning & Napier Advisors LLC boosted its stake in shares of Cisco Systems by 137.0% during the 1st quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider's stock worth $27,000 after acquiring an additional 200 shares during the period. Finally, Financial Life Planners bought a new position in shares of Cisco Systems during the 1st quarter worth approximately $27,000. Institutional investors and hedge funds own 73.33% of the company's stock.

Cisco Systems Stock Down 1.6%

CSCO stock opened at $111.68 on Friday. The firm has a 50-day moving average price of $117.03 and a 200-day moving average price of $99.09. Cisco Systems, Inc. has a 12 month low of $65.75 and a 12 month high of $130.37. The company has a current ratio of 0.93, a quick ratio of 0.81 and a debt-to-equity ratio of 0.39. The stock has a market capitalization of $440.18 billion, a P/E ratio of 33.44, a price-to-earnings-growth ratio of 2.52 and a beta of 1.02.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share for the quarter, topping analysts' consensus estimates of $1.17 by $0.05. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The firm had revenue of $17.25 billion for the quarter, compared to analyst estimates of $16.84 billion. During the same period in the previous year, the firm posted $0.99 EPS. The company'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 anticipate that Cisco Systems, Inc. will post 4.09 EPS for the current fiscal year.

Cisco Systems Announces Dividend

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

Insider Transactions at Cisco Systems

In related news, CEO Charles Robbins sold 21,400 shares of the stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $120.03, for a total transaction of $2,568,642.00. Following the transaction, the chief executive officer directly owned 637,085 shares of the company's stock, valued at $76,469,312.55. This represents a 3.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,607 shares of the business's stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $121.12, for a total value of $315,759.84. Following the completion of the sale, the executive vice president directly owned 172,727 shares of the company's stock, valued at $20,920,694.24. The trade was a 1.49% 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. In the last ninety days, insiders sold 31,134 shares of company stock valued at $3,739,000. Corporate insiders own 0.01% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on CSCO shares. KeyCorp increased their price target on Cisco Systems from $130.00 to $135.00 and gave the company an "overweight" rating in a research note on Thursday. BNP Paribas Exane upped their price objective on shares of Cisco Systems from $87.00 to $132.00 and gave the company an "outperform" rating in a report on Thursday, May 14th. UBS Group lifted their target price on shares of Cisco Systems from $132.00 to $138.00 and gave the stock a "buy" rating in a report on Thursday. Zacks Research cut shares of Cisco Systems from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 4th. Finally, Rosenblatt Securities boosted their price objective on Cisco Systems from $150.00 to $165.00 and gave the stock a "buy" rating in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $129.43.

Key Cisco Systems News

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

• Positive Sentiment: AI demand is accelerating. Cisco reported fiscal Q4 revenue of approximately $17.3 billion, up 18% year over year, and adjusted EPS of $1.22 versus the $1.17 consensus estimate. AI infrastructure orders increased 4.5 times to $9.3 billion for fiscal 2026, while management expects approximately $7.5 billion of hyperscaler AI infrastructure revenue in fiscal 2027. Chuck Robbins Says AI Is Fueling a Networking Supercycle
• Positive Sentiment: Fiscal 2027 guidance exceeded expectations. Management forecast roughly 15% revenue growth, supported by hyperscaler spending, data-center switching and broader networking upgrades. Several firms—including UBS, Truist, Wells Fargo, KeyCorp, Morgan Stanley and Rosenblatt—raised their price targets and maintained bullish ratings, suggesting long-term upside if the AI networking cycle continues. Cisco Just Gave Investors Three Big Reasons to Be Bullish
• Neutral Sentiment: The market is demanding faster growth. Despite the earnings beat and upbeat outlook, Cisco’s shares have decreased because expectations were already elevated after a substantial rally. Investors are questioning whether the company’s AI momentum can remain strong beyond the current infrastructure buildout and whether Cisco’s premium valuation is justified. Cisco Shares Slide Despite Earnings Beat and Strong Guidance
• Negative Sentiment: Margin pressure is the primary concern. AI infrastructure growth is arriving mainly through lower-margin hardware, creating mix-related gross-margin compression and raising questions about how profitably Cisco can scale orders. HSBC downgraded CSCO to Hold from Buy and reduced its price target to $120 from $137, citing a lack of near-term catalysts even after the strong quarter. Cisco Beat on Every Line, Then Fell on What AI Costs to Ship

About Cisco Systems

Cisco Systems, Inc is a global technology company that designs, manufactures and sells networking hardware, software and telecommunications equipment. Its core business focuses on enabling enterprise and service-provider networks through products such as routers, switches, network security appliances and wireless systems. Over time Cisco has broadened its portfolio to emphasize software-defined networking, cybersecurity, cloud infrastructure and edge computing solutions that help organizations build and manage modern IT environments.

In addition to hardware, Cisco offers a growing range of software platforms and subscription services for network management, security, analytics and collaboration.

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