Independent Advisor Alliance Cuts Holdings in Cisco Systems, Inc. $CSCO

Key Points

• Independent Advisor Alliance reduced its Cisco Systems stake by 15.7% in the fourth quarter, selling 18,507 shares and leaving it with 99,597 shares worth about $7.67 million.
• Cisco reported quarterly earnings that beat analyst expectations, with EPS of $1.04 versus $1.02 estimated and revenue of $15.35 billion, up 9.7% year over year.
• Wall Street remains mostly constructive on the stock, with a Moderate Buy consensus and an average price target of $90.29, even as some analysts recently downgraded the shares to hold.

Independent Advisor Alliance cut its position in shares of Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 15.7% during the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 99,597 shares of the network equipment provider's stock after selling 18,507 shares during the quarter. Independent Advisor Alliance's holdings in Cisco Systems were worth $7,672,000 as of its most recent SEC filing.

Several other large investors also recently modified their holdings of the stock. Arrowstreet Capital Limited Partnership lifted its holdings in Cisco Systems by 110.2% during the third quarter. Arrowstreet Capital Limited Partnership now owns 18,406,442 shares of the network equipment provider's stock valued at $1,259,369,000 after purchasing an additional 9,648,265 shares during the last quarter. Wellington Management Group LLP grew its stake in Cisco Systems by 19.5% in the 3rd quarter. Wellington Management Group LLP now owns 33,748,414 shares of the network equipment provider's stock worth $2,309,066,000 after buying an additional 5,498,375 shares in the last quarter. Invesco Ltd. grew its stake in Cisco Systems by 10.5% in the 3rd quarter. Invesco Ltd. now owns 53,612,720 shares of the network equipment provider's stock worth $3,668,182,000 after buying an additional 5,081,469 shares in the last quarter. Vanguard Group Inc. lifted its stake in shares of Cisco Systems by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 398,943,293 shares of the network equipment provider's stock valued at $30,730,602,000 after acquiring an additional 4,049,893 shares during the last quarter. Finally, Danske Bank A S purchased a new stake in Cisco Systems during the 3rd quarter valued at $233,956,000. Hedge funds and other institutional investors own 73.33% of the company's stock.

Cisco Systems Stock Up 0.6%

Cisco Systems stock opened at $99.29 on Wednesday. The stock has a market cap of $392.18 billion, a PE ratio of 34.84, a price-to-earnings-growth ratio of 3.70 and a beta of 0.92. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.85 and a current ratio of 0.96. Cisco Systems, Inc. has a one year low of $60.85 and a one year high of $99.93. The stock has a fifty day moving average of $83.48 and a 200 day moving average of $79.14.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its quarterly earnings data on Wednesday, February 11th. The network equipment provider reported $1.04 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.02 by $0.02. The company had revenue of $15.35 billion for the quarter, compared to the consensus estimate of $15.11 billion. Cisco Systems had a net margin of 19.22% and a return on equity of 27.88%. The firm's revenue was up 9.7% compared to the same quarter last year. During the same quarter last year, the firm posted $0.94 earnings per share. As a group, sell-side analysts predict that Cisco Systems, Inc. will post 3.42 EPS for the current year.

Wall Street Analyst Weigh In

Several research analysts have commented on the stock. Zacks Research lowered shares of Cisco Systems from a "strong-buy" rating to a "hold" rating in a report on Monday, April 13th. Citigroup boosted their price target on Cisco Systems from $85.00 to $90.00 and gave the stock a "buy" rating in a research note on Thursday, February 12th. Erste Group Bank downgraded Cisco Systems from a "buy" rating to a "hold" rating in a report on Wednesday, February 18th. HSBC increased their price objective on Cisco Systems from $74.00 to $77.00 and gave the company a "hold" rating in a research report on Friday, February 13th. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Cisco Systems in a research report on Friday, April 24th. Three research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $90.29.

Cisco Systems News Roundup

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

• Positive Sentiment: Investors are betting Cisco will benefit from strong AI infrastructure demand, hyperscaler spending, and solid product orders, which could support another earnings beat and upbeat guidance. The Zacks Analyst Blog Cisco, Arista Networks, Dell and Hewlett
• Positive Sentiment: The company is approaching earnings with shares at or near all-time highs, reflecting strong momentum and continued investor confidence in the networking business. Cisco Q3 Preview: Stock Hits New Highs, Expert Asks 'Can It Return To Those Parabolic '90s Like Returns?'
• Positive Sentiment: AT&T’s launch of a Cisco-powered post-quantum security SD-WAN service highlights Cisco’s role in next-generation enterprise networking and cybersecurity. Can AT&T's Cisco-Powered Quantum Security Network Drive Profits?
• Neutral Sentiment: JPMorgan raised its price target to $96, but that still sits below Cisco’s recent trading range, suggesting the market may already be pricing in a strong earnings outlook. JPMorgan Adjusts Price Target on Cisco Systems to 96 From 95
• Negative Sentiment: Some reports note the stock is the most overbought it has been since 2018, raising the risk of a pullback if earnings or guidance disappoint. Cisco stock at its most overbought since 2018 — and a top pro sees 25% upside
• Negative Sentiment: Traders are also bracing for a sizable post-earnings move, which signals elevated uncertainty around the upcoming results and forward outlook. How Much Is Cisco Stock Expected to Move After Earnings This Week?

Insider Buying and Selling

In related 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 value of $634,489.50. Following the transaction, the executive vice president 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Jeetendra I. Patel sold 11,248 shares of the firm's stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $76.00, for a total transaction of $854,848.00. Following the completion of the transaction, the insider directly owned 262,776 shares in the company, valued at approximately $19,970,976. The trade was a 4.10% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 46,431 shares of company stock valued at $3,574,820 in the last 90 days. 0.01% of the stock is owned by insiders.

Cisco Systems 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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