Harbor Island Capital LLC Sells 32,322 Shares of Cisco Systems, Inc. $CSCO

Key Points

• Harbor Island Capital cut its Cisco stake by 15.7% in the third quarter, selling 32,322 shares and retaining 173,629 shares valued at approximately $18.7 million. Cisco remains the fund’s sixth-largest holding and represents about 4.8% of its portfolio.
• Cisco reported quarterly results above expectations, with earnings of $1.22 per share and revenue of $17.25 billion; revenue increased 17.6% year over year. Institutional investors own 73.33% of the company.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $128.52. Cisco also pays a quarterly dividend of $0.42 per share, representing a 1.6% yield.

Harbor Island Capital LLC lessened its position in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 15.7% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 173,629 shares of the network equipment provider's stock after selling 32,322 shares during the quarter. Cisco Systems accounts for approximately 4.8% of Harbor Island Capital LLC's portfolio, making the stock its 6th largest holding. Harbor Island Capital LLC's holdings in Cisco Systems were worth $18,688,000 at the end of the most recent reporting period.

Other large investors have also added to or reduced their stakes in the company. Bridgewater Advisors Inc. purchased a new stake in Cisco Systems in the second quarter worth approximately $6,442,000. Beacon Pointe Advisors LLC bought a new stake in shares of Cisco Systems in the 2nd quarter worth approximately $60,009,000. Western Wealth Management LLC grew its holdings in shares of Cisco Systems by 60.5% during the 1st quarter. Western Wealth Management LLC now owns 76,372 shares of the network equipment provider's stock valued at $5,926,000 after purchasing an additional 28,792 shares during the last quarter. ABN AMRO Bank N.V. purchased a new position in Cisco Systems in the 2nd quarter worth $19,114,000. Finally, USS Investment Management Ltd lifted its stake in Cisco Systems by 1.8% in the first quarter. USS Investment Management Ltd now owns 686,466 shares of the network equipment provider's stock worth $53,253,000 after purchasing an additional 12,251 shares during the last quarter. Hedge funds and other institutional investors own 73.33% of the company's stock.

Cisco Systems Stock Up 1.5%

Shares of NASDAQ CSCO opened at $106.50 on Friday. The firm's fifty day moving average is $110.18 and its 200 day moving average is $109.86. Cisco Systems, Inc. has a 52 week low of $70.06 and a 52 week high of $130.37. The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39. The company has a market cap of $419.89 billion, a price-to-earnings ratio of 31.89, a PEG ratio of 2.22 and a beta of 0.99.

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

Cisco Systems Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 21st. Stockholders of record on Friday, October 2nd were issued a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date was Friday, October 2nd. Cisco Systems's dividend payout ratio is currently 50.30%.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on CSCO. UBS Group upped their price target 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. Piper Sandler reduced their price objective on Cisco Systems from $132.00 to $125.00 and set a "neutral" rating on the stock in a research note on Tuesday, September 22nd. Wall Street Zen upgraded Cisco Systems from a "hold" rating to a "buy" rating in a report on Sunday, October 11th. Weiss Ratings reissued a "buy (b)" rating on shares of Cisco Systems in a research note on Wednesday, August 26th. Finally, Barclays increased their target price on Cisco Systems from $121.00 to $123.00 and gave the company an "equal weight" rating in a report on Thursday, August 13th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $128.52.

Insider Activity at Cisco Systems

In related news, insider Jeetendra Patel sold 7,170 shares of the firm's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $111.57, for a total value of $799,956.90. Following the sale, the insider directly owned 230,593 shares of the company's stock, valued at $25,727,261.01. This trade represents a 3.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya Subaiya sold 312 shares of the business's stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $110.18, for a total value of $34,376.16. Following the transaction, the executive vice president owned 127,661 shares in the company, valued at approximately $14,065,688.98. This represents a 0.24% 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. Insiders sold a total of 44,869 shares of company stock valued at $5,005,620 in the last quarter. 0.01% of the stock is currently owned by company insiders.

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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