HBK Sorce Advisory LLC Makes New Investment in Cisco Systems, Inc. $CSCO

Key Points

• HBK Sorce Advisory initiated a Cisco position in the second quarter, purchasing 55,221 shares valued at approximately $6.7 million. Institutional investors and hedge funds collectively own 73.33% of Cisco’s stock.
• Cisco reported strong quarterly results, with revenue rising 17.6% year over year to $17.25 billion and EPS of $1.22, topping estimates. AI infrastructure orders surged 4.5 times to $9.3 billion, supporting management’s expectation of roughly 15% revenue growth in fiscal 2027.
• Despite the optimistic outlook and multiple analyst price-target increases, shares have faced pressure as investors assess Cisco’s premium valuation and margin risk from lower-margin AI hardware. The stock carries a consensus “Moderate Buy” rating and a $129.43 price target.

HBK Sorce Advisory LLC bought a new position in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 55,221 shares of the network equipment provider's stock, valued at approximately $6,709,000.

A number of other institutional investors have also modified their holdings of CSCO. MidAtlantic Capital Management Inc. acquired a new position in Cisco Systems in the fourth quarter worth about $25,000. Intesa Sanpaolo Wealth Management acquired a new stake in Cisco Systems during the fourth quarter valued at approximately $25,000. Networth Advisors LLC raised its stake in Cisco Systems by 276.4% during 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 in the last quarter. Financial Life Planners bought a new position in Cisco Systems during the 1st quarter worth approximately $27,000. Finally, Manning & Napier Advisors LLC grew its position in shares of Cisco Systems by 137.0% in 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 in the last quarter. Institutional investors and hedge funds own 73.33% of the company's stock.

Key Stories Impacting Cisco Systems

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

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on CSCO shares. Weiss Ratings upgraded Cisco Systems from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, May 29th. Rosenblatt Securities raised their price objective on Cisco Systems from $150.00 to $165.00 and gave the stock a "buy" rating in a research note on Thursday. KeyCorp lifted their price objective on shares of Cisco Systems from $130.00 to $135.00 and gave the stock an "overweight" rating in a report on Thursday. Argus increased their target price on shares of Cisco Systems from $100.00 to $150.00 and gave the stock a "buy" rating in a report on Tuesday, May 19th. Finally, UBS Group raised their price target on shares of Cisco Systems from $132.00 to $138.00 and gave the stock a "buy" rating in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $129.43.

Cisco Systems Price Performance

Shares of Cisco Systems stock opened at $111.68 on Monday. The stock has a market capitalization of $440.18 billion, a price-to-earnings ratio of 33.44, a PEG ratio of 2.38 and a beta of 1.02. Cisco Systems, Inc. has a twelve month low of $65.75 and a twelve month high of $130.37. 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 business's 50 day simple moving average is $117.03 and its 200-day simple moving average is $99.24.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.17 by $0.05. The business had revenue of $17.25 billion during the quarter, compared to analyst estimates of $16.84 billion. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%.The business's revenue for the quarter was up 17.6% compared to the same quarter last year. During the same quarter in the previous year, the firm 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. Equities research analysts forecast that Cisco Systems, Inc. will post 4.09 earnings per share for the current year.

Cisco Systems Dividend Announcement

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

Insider Activity

In related news, EVP Thimaya K. Subaiya sold 7,127 shares of Cisco Systems stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $119.91, for a total value of $854,598.57. Following the sale, the executive vice president directly owned 140,857 shares in the company, valued at $16,890,162.87. This trade represents a 4.82% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,400 shares of the business's stock in a transaction dated 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. The trade was a 3.25% 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. Over the last quarter, insiders sold 31,134 shares of company stock valued at $3,739,000. 0.01% of the stock is currently owned by company insiders.

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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