Johnson Financial Group Inc. Trims Position in Cisco Systems, Inc. $CSCO

Key Points

• Johnson Financial Group cut its Cisco position by 9.2% in the second quarter, selling 10,249 shares and retaining 101,495 shares valued at approximately $11.9 million. Institutional investors collectively own 73.33% of Cisco.
• Cisco recently exceeded quarterly expectations with $1.22 in adjusted EPS and $17.25 billion in revenue, up 17.6% year over year. Strong AI infrastructure demand and upbeat fiscal 2027 guidance are supporting the growth outlook.
• Analysts maintain a consensus “Moderate Buy” rating with a $129.43 target price, but margin pressure, questions about the durability of AI-driven growth, and insider stock sales remain key risks. Cisco also declared a quarterly dividend of $0.42 per share, implying a 1.5% annualized yield.

Johnson Financial Group Inc. reduced its position in shares of Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 9.2% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 101,495 shares of the network equipment provider's stock after selling 10,249 shares during the period. Cisco Systems accounts for about 0.4% of Johnson Financial Group Inc.'s holdings, making the stock its 21st biggest holding. Johnson Financial Group Inc.'s holdings in Cisco Systems were worth $11,922,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in CSCO. Vanguard Group Inc. grew its holdings in shares of Cisco Systems by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 398,943,293 shares of the network equipment provider's stock worth $30,730,602,000 after purchasing an additional 4,049,893 shares during the period. BlackRock Inc. acquired a new stake in shares of Cisco Systems during the second quarter valued at about $42,129,647,000. State Street Corp increased its holdings in Cisco Systems by 0.5% in the 4th quarter. State Street Corp now owns 195,521,161 shares of the network equipment provider's stock valued at $15,060,995,000 after purchasing an additional 1,057,962 shares during the last quarter. Morgan Stanley raised its position in Cisco Systems by 0.3% in the fourth quarter. Morgan Stanley now owns 75,326,258 shares of the network equipment provider's stock valued at $5,802,382,000 after purchasing an additional 206,352 shares during the period. Finally, Invesco Ltd. lifted its stake in Cisco Systems by 11.6% during the fourth quarter. Invesco Ltd. now owns 59,836,782 shares of the network equipment provider's stock worth $4,609,227,000 after purchasing an additional 6,224,062 shares in the last quarter. Institutional investors and hedge funds own 73.33% of the company's stock.

Insiders Place Their Bets

In related news, EVP Oliver Tuszik sold 2,760 shares of the business's stock in a transaction on Friday, August 14th. The shares were sold at an average price of $112.46, for a total transaction of $310,389.60. Following the completion of the transaction, the executive vice president owned 165,276 shares in the company, valued at approximately $18,586,938.96. The trade was a 1.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,628 shares of the stock in a transaction on Friday, August 14th. The shares were sold at an average price of $111.54, for a total value of $2,412,387.12. Following the completion of the transaction, the chief executive officer directly owned 602,710 shares in the company, valued at $67,226,273.40. This trade represents a 3.46% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 69,179 shares of company stock worth $7,985,229. 0.01% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

CSCO has been the topic of several research reports. Citic Securities increased their target price on Cisco Systems from $90.00 to $130.00 in a research note on Friday, May 15th. BNP Paribas Exane raised their price objective on shares of Cisco Systems from $87.00 to $132.00 and gave the company an "outperform" rating in a research note on Thursday, May 14th. Argus upped their target price on shares of Cisco Systems from $100.00 to $150.00 and gave the stock a "buy" rating in a research note on Tuesday, May 19th. New Street Research raised their price target on shares of Cisco Systems from $82.00 to $122.00 and gave the company a "neutral" rating in a research report on Thursday, May 14th. Finally, KeyCorp boosted their price target on shares of Cisco Systems from $130.00 to $135.00 and gave the stock an "overweight" rating in a research note on Thursday, August 13th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $129.43.

Cisco Systems Stock Performance

Shares of CSCO opened at $110.55 on Thursday. Cisco Systems, Inc. has a 1 year low of $66.13 and a 1 year high of $130.37. The stock has a market capitalization of $435.73 billion, a PE ratio of 33.10, a PEG ratio of 2.38 and a beta of 1.02. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.79 and a current ratio of 0.93. The stock has a 50-day simple moving average of $116.47 and a 200-day simple moving average of $99.94.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share for the quarter, topping analysts' consensus estimates of $1.17 by $0.05. The firm had revenue of $17.25 billion for the quarter, compared to analyst estimates of $16.84 billion. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The business's quarterly revenue was up 17.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.99 earnings per share. 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, analysts predict that Cisco Systems, Inc. will post 4.09 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

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

Key Stories Impacting Cisco Systems

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

• Positive Sentiment: Cisco reported approximately $17.3 billion in quarterly revenue, up 18% year over year, and adjusted EPS of $1.22, exceeding the $1.17 consensus estimate. Management’s fiscal 2027 outlook was also optimistic, reinforcing expectations for continued growth. Strong AI Infrastructure Orders Drive Confidence in Cisco Systems
• Positive Sentiment: AI infrastructure demand remains a major growth driver. Cisco recorded $4 billion of AI infrastructure orders in the latest quarter, $9.3 billion for fiscal 2026, and expects $7.5 billion of AI infrastructure revenue in fiscal 2027. Bank of America reiterated its Buy rating and $150 price target, indicating substantial potential upside if execution continues. BofA makes bold call on Cisco stock after earnings
• Neutral Sentiment: Analysts questioned how sustainable the AI-led growth surge will be and whether Cisco can convert strong orders into durable, profitable recurring revenue. A recent Freedom Capital upgrade to Strong Buy provides a counterpoint to the more cautious views. What Kept Coming Up When Analysts Grilled CSCO
• Negative Sentiment: Gross-margin pressure was the key earnings concern. Margins fell to about 66.3% and are expected to remain around 65%–66% in the next quarter, partly because of higher memory costs, hardware pricing, and an unfavorable product mix. Soft recurring growth and a premium valuation have led some analysts to recommend holding the stock despite strong revenue growth. Cisco: Buy The AI Pullback, But Watch The Margin Pressure
• Negative Sentiment: HSBC downgraded Cisco to Hold, while CEO Charles Robbins and other executives disclosed share sales. The transactions were conducted under pre-arranged Rule 10b5-1 plans, making them a modest negative signal rather than clear evidence of deteriorating management confidence.

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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