Legato Capital Management LLC Grows Stake in Cisco Systems, Inc. $CSCO

Key Points

• Legato Capital Management increased its Cisco stake by 128.6% in the fourth quarter, ending with 53,337 shares worth about $4.1 million.
• Cisco reported better-than-expected fiscal Q3 results, with EPS of $1.06 and revenue of $15.84 billion, both topping analyst estimates. The company also said revenue rose 12% year over year and issued upbeat guidance for Q4 FY2026 and FY2026.
• The stock has drawn mixed signals: analysts remain broadly constructive with a consensus Moderate Buy rating and an average target of $118.14, but some recent insider sales and the stock’s sharp rally have added caution.

Legato Capital Management LLC raised its stake in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 128.6% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 53,337 shares of the network equipment provider's stock after acquiring an additional 30,000 shares during the quarter. Legato Capital Management LLC's holdings in Cisco Systems were worth $4,109,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in CSCO. Board of the Pension Protection Fund purchased a new position in Cisco Systems in the fourth quarter valued at about $31,000. EQ Wealth Advisors LLC purchased a new position in Cisco Systems in the fourth quarter valued at about $31,000. Anfield Capital Management LLC boosted its stake in Cisco Systems by 248.9% in the fourth quarter. Anfield Capital Management LLC now owns 485 shares of the network equipment provider's stock valued at $37,000 after acquiring an additional 346 shares during the last quarter. Joseph Group Capital Management purchased a new position in Cisco Systems in the fourth quarter valued at about $38,000. Finally, Luken Investment Analytics LLC boosted its stake in Cisco Systems by 418.0% in the fourth quarter. Luken Investment Analytics LLC now owns 518 shares of the network equipment provider's stock valued at $40,000 after acquiring an additional 418 shares during the last quarter. 73.33% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Cisco Systems news, EVP Thimaya K. Subaiya sold 1,744 shares of the stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of $77.07, for a total value of $134,410.08. Following the sale, the executive vice president directly owned 156,693 shares in the company, valued at $12,076,329.51. This represents a 1.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Jeetendra I. Patel sold 7,169 shares of the stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $117.28, for a total transaction of $840,780.32. Following the completion of the sale, the insider owned 246,737 shares in the company, valued at $28,937,315.36. This represents a 2.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 32,103 shares of company stock worth $3,160,587. Company insiders own 0.01% of the company's stock.

Cisco Systems Stock Performance

Shares of CSCO stock opened at $120.41 on Friday. The stock has a market capitalization of $474.59 billion, a P/E ratio of 39.09, a PEG ratio of 3.59 and a beta of 0.92. The company has a current ratio of 0.92, a quick ratio of 0.81 and a debt-to-equity ratio of 0.40. The firm's 50 day moving average is $89.34 and its 200 day moving average is $81.52. Cisco Systems, Inc. has a 12 month low of $62.30 and a 12 month high of $120.79.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.03 by $0.03. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The business had revenue of $15.84 billion for the quarter, compared to analysts' expectations of $15.56 billion. During the same period in the prior year, the company posted $0.96 EPS. The business's revenue for the quarter was up 12.0% compared to the same quarter last year. Cisco Systems has set its Q4 2026 guidance at 1.160-1.180 EPS and its FY 2026 guidance at 4.270-4.290 EPS. On average, sell-side analysts anticipate that Cisco Systems, Inc. will post 3.44 earnings per share for the current year.

Cisco Systems Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 22nd. Shareholders of record on Monday, July 6th will be paid a $0.42 dividend. The ex-dividend date is Monday, July 6th. This represents a $1.68 annualized dividend and a yield of 1.4%. Cisco Systems's dividend payout ratio is currently 54.55%.

Analyst Ratings Changes

A number of analysts recently commented on CSCO shares. Erste Group Bank cut shares of Cisco Systems from a "buy" rating to a "hold" rating in a research note on Wednesday, February 18th. The Goldman Sachs Group upped their price target on shares of Cisco Systems from $75.00 to $116.00 and gave the company a "neutral" rating in a research note on Thursday, May 14th. KeyCorp upped their price target on shares of Cisco Systems from $87.00 to $125.00 and gave the company an "overweight" rating in a research note on Thursday, May 14th. Argus upped their price target on shares of Cisco Systems from $100.00 to $150.00 and gave the company a "buy" rating in a research note on Tuesday. Finally, Citigroup upped their price target on shares of Cisco Systems from $90.00 to $112.00 and gave the company a "buy" rating in a research note on Thursday, May 14th. Two analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $118.14.

Cisco Systems News Summary

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

• Positive Sentiment: Cisco is being viewed as an AI networking winner, with multiple reports citing surging hyperscaler orders and stronger campus upgrade activity that could support revenue growth and the company’s AI outlook. Cisco Gains From AI Networking Boom : More Upside Ahead?
• Positive Sentiment: Another bullish article said Cisco has climbed sharply over the past month because investors are rewarding its exposure to AI networking demand, even though margin pressure remains a concern. Cisco Rises 33% in a Month: Here's Why You Should Buy the Stock
• Positive Sentiment: Coverage also emphasized Cisco’s strong recent financial results, pointing to solid top- and bottom-line growth that reinforces its role as a core tech holding for long-term investors. Impressive Financial Results Assert Cisco Systems, Inc. (CSCO) as a Top Tech Stock in Ken Fisher’s Portfolio
• Neutral Sentiment: Wall Street commentary remained broadly constructive, with articles noting bullish analyst views on Cisco, but these pieces did not add a new catalyst beyond reinforcing existing optimism. Should You Invest in Cisco (CSCO) Based on Bullish Wall Street Views?
• Neutral Sentiment: Cisco was also mentioned as part of a broader AI optics alliance focused on standardizing optical connectivity for AI infrastructure, which supports the company’s strategic positioning but is not a direct company-specific development. 3M Joins AI Optics Alliance As Shares Screen Undervalued
• Negative Sentiment: Recent insider selling by a Cisco executive could create some caution, even though it is not necessarily a sign of deteriorating fundamentals. Cisco Systems NASDAQ: CSCO EVP Sells $772,603.66 in Stock
• Negative Sentiment: Another report flagged additional insider selling, which may weigh on sentiment at the margin after the stock’s recent strong run. Insider Selling: Cisco Systems NASDAQ: CSCO Insider Sells $840,780.32 in Stock

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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