Cisco Systems, Inc. $CSCO Stake Lessened by Dodge & Cox

Key Points

• Dodge & Cox has reduced its holdings in Cisco Systems, Inc. by 8.5%, selling 2,015,954 shares, and now owns approximately 0.55% of the company, valued at $1.34 billion.
• Cisco reported $0.99 earnings per share (EPS) for the quarter, surpassing expectations, with a revenue increase of 7.6% year-over-year, totaling $14.67 billion.
• The firm announced a new dividend of $0.41 per share, with an ex-dividend date of October 3rd, reflecting a 2.4% dividend yield.

Dodge & Cox lowered its stake in shares of Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 8.5% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 21,722,716 shares of the network equipment provider's stock after selling 2,015,954 shares during the quarter. Dodge & Cox owned approximately 0.55% of Cisco Systems worth $1,340,509,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the stock. Legacy Financial Group Inc. boosted its position in Cisco Systems by 3.4% during the 4th quarter. Legacy Financial Group Inc. now owns 5,100 shares of the network equipment provider's stock valued at $302,000 after purchasing an additional 169 shares during the period. Capital Advantage Inc. boosted its position in Cisco Systems by 1.0% during the 4th quarter. Capital Advantage Inc. now owns 17,361 shares of the network equipment provider's stock valued at $1,028,000 after purchasing an additional 172 shares during the period. Avalon Trust Co raised its stake in Cisco Systems by 5.4% during the 1st quarter. Avalon Trust Co now owns 3,433 shares of the network equipment provider's stock valued at $212,000 after acquiring an additional 177 shares in the last quarter. Rossmore Private Capital raised its stake in Cisco Systems by 0.3% during the 1st quarter. Rossmore Private Capital now owns 69,220 shares of the network equipment provider's stock valued at $4,272,000 after acquiring an additional 181 shares in the last quarter. Finally, GSG Advisors LLC raised its stake in Cisco Systems by 4.8% during the 1st quarter. GSG Advisors LLC now owns 4,023 shares of the network equipment provider's stock valued at $234,000 after acquiring an additional 183 shares in the last quarter. Institutional investors and hedge funds own 73.33% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on CSCO. New Street Research reaffirmed a "neutral" rating and set a $70.00 target price on shares of Cisco Systems in a research note on Friday, May 16th. Bank of America lifted their target price on Cisco Systems from $76.00 to $85.00 and gave the company a "buy" rating in a research note on Thursday, August 14th. Hsbc Global Res downgraded Cisco Systems from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 15th. Barclays lifted their target price on Cisco Systems from $66.00 to $71.00 and gave the company an "equal weight" rating in a research note on Thursday, August 14th. Finally, Morgan Stanley lifted their target price on Cisco Systems from $67.00 to $70.00 and gave the company an "overweight" rating in a research note on Friday, July 18th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and ten have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $74.53.

Cisco Systems Price Performance

Shares of CSCO stock traded up $0.30 during mid-day trading on Friday, hitting $67.32. 16,826,733 shares of the stock traded hands, compared to its average volume of 22,719,050. Cisco Systems, Inc. has a twelve month low of $47.85 and a twelve month high of $72.55. The firm has a market cap of $266.59 billion, a price-to-earnings ratio of 25.69, a price-to-earnings-growth ratio of 2.75 and a beta of 0.91. The company's 50-day simple moving average is $68.20 and its 200-day simple moving average is $63.57. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.92 and a current ratio of 1.01.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its quarterly earnings results on Wednesday, August 13th. The network equipment provider reported $0.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.98 by $0.01. The company had revenue of $14.67 billion for the quarter, compared to analysts' expectations of $14.63 billion. Cisco Systems had a return on equity of 27.02% and a net margin of 18.45%.The firm's revenue for the quarter was up 7.6% on a year-over-year basis. During the same period last year, the firm earned $0.87 EPS. Cisco Systems has set its Q1 2026 guidance at 0.970-0.990 EPS. FY 2026 guidance at 4.000-4.060 EPS. As a group, equities research analysts expect that Cisco Systems, Inc. will post 3.04 earnings per share for the current year.

Cisco Systems Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 22nd. Stockholders of record on Friday, October 3rd will be paid a dividend of $0.41 per share. The ex-dividend date of this dividend is Friday, October 3rd. This represents a $1.64 annualized dividend and a dividend yield of 2.4%. Cisco Systems's dividend payout ratio (DPR) is currently 62.60%.

Insider Buying and Selling at Cisco Systems

In other news, EVP Deborah L. Stahlkopf sold 9,783 shares of the firm's stock in a transaction on Friday, August 15th. The stock was sold at an average price of $66.60, for a total transaction of $651,547.80. Following the completion of the sale, the executive vice president directly owned 161,662 shares of the company's stock, valued at $10,766,689.20. This trade represents a 5.71% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Charles Robbins sold 30,557 shares of the firm's stock in a transaction on Friday, August 15th. The stock was sold at an average price of $66.63, for a total value of $2,036,012.91. Following the sale, the chief executive officer directly owned 639,000 shares of the company's stock, valued at approximately $42,576,570. This represents a 4.56% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 135,118 shares of company stock worth $8,847,167. 0.01% of the stock is owned by insiders.

About Cisco Systems

Cisco Systems, Inc designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization.