Convergence Investment Partners LLC Purchases 33,330 Shares of Cisco Systems, Inc. $CSCO

Key Points

• Convergence Investment Partners LLC more than doubled its Cisco position in the fourth quarter, buying 33,330 additional shares and bringing its stake to 63,931 shares valued at about $4.93 million.
• Cisco reported better-than-expected quarterly results, with EPS of $1.06 and revenue of $15.84 billion, both topping analyst estimates, and it raised guidance for fiscal 2026.
• Wall Street sentiment remains upbeat: several analysts raised price targets after the earnings beat, and the stock has been buoyed by optimism around Cisco’s role in AI infrastructure.

Convergence Investment Partners LLC grew its position in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 108.9% during the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 63,931 shares of the network equipment provider's stock after buying an additional 33,330 shares during the period. Cisco Systems accounts for about 1.0% of Convergence Investment Partners LLC's portfolio, making the stock its 23rd largest position. Convergence Investment Partners LLC's holdings in Cisco Systems were worth $4,925,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of the company. Cairn Investment Group Inc. boosted its holdings in shares of Cisco Systems by 0.5% in the 4th quarter. Cairn Investment Group Inc. now owns 24,146 shares of the network equipment provider's stock valued at $1,860,000 after buying an additional 130 shares in the last quarter. Juncture Wealth Strategies LLC boosted its holdings in shares of Cisco Systems by 0.9% in the 4th quarter. Juncture Wealth Strategies LLC now owns 15,042 shares of the network equipment provider's stock valued at $1,159,000 after buying an additional 132 shares in the last quarter. Northstar Advisory Group LLC boosted its holdings in shares of Cisco Systems by 1.6% in the 4th quarter. Northstar Advisory Group LLC now owns 8,203 shares of the network equipment provider's stock valued at $632,000 after buying an additional 133 shares in the last quarter. Roman Butler Fullerton & Co. boosted its holdings in shares of Cisco Systems by 0.8% in the 4th quarter. Roman Butler Fullerton & Co. now owns 15,917 shares of the network equipment provider's stock valued at $1,183,000 after buying an additional 133 shares in the last quarter. Finally, MMA Asset Management LLC boosted its holdings in shares of Cisco Systems by 2.3% in the 4th quarter. MMA Asset Management LLC now owns 6,167 shares of the network equipment provider's stock valued at $475,000 after buying an additional 139 shares in the last quarter. 73.33% of the stock is currently owned by institutional investors.

Cisco Systems Stock Up 2.3%

CSCO stock opened at $118.21 on Friday. Cisco Systems, Inc. has a 52 week low of $62.30 and a 52 week high of $119.36. The company has a quick ratio of 0.85, a current ratio of 0.92 and a debt-to-equity ratio of 0.40. The stock has a market capitalization of $466.92 billion, a PE ratio of 38.38, a price-to-earnings-growth ratio of 4.34 and a beta of 0.92. The firm has a 50 day moving average of $85.41 and a 200 day moving average of $79.95.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its quarterly earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.03 by $0.03. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The company had revenue of $15.84 billion during the quarter, compared to analyst estimates of $15.56 billion. During the same period last year, the firm posted $0.96 EPS. Cisco Systems's revenue for the quarter was up 12.0% compared to the same quarter last year. Cisco Systems has set its Q4 2026 guidance at 1.160-1.180 EPS and its FY 2026 guidance at 4.270-4.290 EPS. Sell-side analysts forecast that Cisco Systems, Inc. will post 3.42 earnings per share for the current year.

Cisco Systems Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 22nd. Shareholders of record on Monday, July 6th will be given a dividend of $0.42 per share. The ex-dividend date of this dividend is Monday, July 6th. This represents a $1.68 dividend on an annualized basis and a yield of 1.4%. Cisco Systems's dividend payout ratio (DPR) is currently 54.55%.

Analysts Set New Price Targets

A number of analysts recently commented on the stock. Barclays lifted their target price on shares of Cisco Systems from $76.00 to $121.00 and gave the stock an "equal weight" rating in a research note on Thursday. HSBC upgraded shares of Cisco Systems from a "hold" rating to a "buy" rating and lifted their target price for the stock from $77.00 to $137.00 in a research note on Friday. UBS Group lifted their target price on shares of Cisco Systems from $95.00 to $132.00 and gave the stock a "buy" rating in a research note on Thursday. Zacks Research cut shares of Cisco Systems from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. Finally, DZ Bank upgraded shares of Cisco Systems to a "strong-buy" rating in a research note on Friday, February 13th. Three analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have given a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $114.55.

Trending Headlines about Cisco Systems

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

• Positive Sentiment: Cisco reported stronger-than-expected Q3 earnings and revenue, with EPS of $1.06 topping estimates and sales of $15.84 billion above forecasts. Article title
• Positive Sentiment: The company raised full-year guidance and pointed to roughly $9 billion in fiscal 2026 hyperscaler AI infrastructure orders, reinforcing the view that Cisco is becoming a key AI infrastructure beneficiary. Article title
• Positive Sentiment: Multiple firms raised price targets after the earnings beat, including HSBC, Evercore, Piper Sandler, KeyCorp, Morgan Stanley, UBS, BNP Paribas, Wells Fargo and Citigroup, signaling broad Wall Street optimism. Article title
• Positive Sentiment: Cisco’s CEO said AI will force a “multi-billion dollar infrastructure reset,” which supports the bullish narrative that the company is at the center of a long upgrade cycle. Article title
• Neutral Sentiment: Cisco also announced plans to cut about 4,000 jobs as it reshapes spending toward AI, which may improve efficiency but adds some execution risk. Article title
• Neutral Sentiment: Some commentary warns that the stock’s rapid rally has pushed valuation higher, and options activity shows elevated volatility expectations heading into the next phase. Article title

Insider Buying and Selling at Cisco Systems

In other Cisco Systems news, EVP Deborah L. Stahlkopf sold 7,981 shares of the firm's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $79.50, for a total transaction of $634,489.50. Following the completion of the transaction, the executive vice president directly owned 187,097 shares of the company's stock, valued at approximately $14,874,211.50. This trade represents a 4.09% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Oliver Tuszik sold 3,132 shares of the firm's stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $79.74, for a total transaction of $249,745.68. Following the transaction, the executive vice president directly owned 188,613 shares of the company's stock, valued at $15,040,000.62. This represents a 1.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 15,587 shares of company stock valued at $1,230,765. 0.01% of the stock is owned by corporate insiders.

Cisco Systems Company Profile

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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