MidFirst Bank Acquires New Position in Cisco Systems, Inc. $CSCO

Key Points

• MidFirst Bank acquired 43,469 Cisco shares during the second quarter, valued at approximately $5.1 million. Institutional investors collectively own 73.33% of Cisco’s stock.
• Cisco reported record quarterly revenue of $17.25 billion, up 17.6% year over year, and adjusted EPS of $1.22, beating analyst expectations. Management also issued fiscal 2027 guidance above current-year levels.
• Despite strong results and a “Moderate Buy” analyst consensus with a $129.43 average price target, Cisco faces margin pressure from rising memory costs, an HSBC downgrade to Hold, and continued insider selling under pre-arranged trading plans.

MidFirst Bank acquired a new position in shares of Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 43,469 shares of the network equipment provider's stock, valued at approximately $5,106,000.

Other large investors have also recently bought and sold shares of the company. MidAtlantic Capital Management Inc. bought a new position in shares of Cisco Systems during the fourth quarter valued at approximately $25,000. Intesa Sanpaolo Wealth Management bought a new stake in shares of Cisco Systems in the 4th quarter worth approximately $25,000. Networth Advisors LLC lifted its holdings in shares of Cisco Systems by 276.4% in the 1st quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider's stock worth $26,000 after purchasing an additional 246 shares during the last quarter. Financial Life Planners acquired a new position in Cisco Systems during the 1st quarter valued at approximately $27,000. Finally, Manning & Napier Advisors LLC grew its stake in Cisco Systems by 137.0% during the 1st quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider's stock worth $27,000 after buying an additional 200 shares during the last quarter. Institutional investors own 73.33% of the company's stock.

Cisco Systems News Summary

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

• Positive Sentiment: Cisco reported record quarterly revenue of approximately $17.3 billion, up 18% year over year, while non-GAAP earnings per share reached $1.22 and surpassed consensus estimates. Management also issued an optimistic fiscal 2027 outlook, supporting the growth case. Why Cisco Stock Is Down Today
• Positive Sentiment: Analysts and market commentators characterize the roughly 8% post-earnings decline as an overreaction, arguing that Cisco’s improving AI networking opportunity and strong results may provide support for the shares. Cisco: This 8% Selloff Looks Like An Overreaction
• Neutral Sentiment: The latest quarter benefited from higher hardware prices, a heavier product mix and pricing actions intended to offset rising memory costs. However, those same memory expenses and the hardware mix pressured product margins, creating a key profitability concern for investors. Cisco Grew Faster By Selling Hardware and Charging More for It
• Neutral Sentiment: Several reports highlighted exchange-traded funds that provide exposure to Cisco’s AI-driven growth while reducing the risk of holding the individual stock, indicating continued interest in the company but also investor caution after the selloff. ETFs to Buy as Cisco Shares Sink
• Negative Sentiment: HSBC downgraded Cisco to Hold, which may limit near-term upside and reflects caution regarding the stock’s valuation and post-earnings performance. Cisco Systems Cut to Hold at HSBC
• Negative Sentiment: CEO Charles Robbins and three other insiders sold a combined 38,045 shares for approximately $4.25 million. Because the transactions were executed under pre-arranged Rule 10b5-1 plans and the executives retained substantial holdings, the sales are a modest negative signal rather than a clear change in management’s outlook.

Cisco Systems Stock Up 1.1%

CSCO opened at $112.90 on Tuesday. The stock's 50 day moving average price is $116.81 and its 200 day moving average price is $99.48. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.93 and a quick ratio of 0.79. The stock has a market cap of $444.99 billion, a P/E ratio of 33.80, a P/E/G ratio of 2.38 and a beta of 1.02. Cisco Systems, Inc. has a 12 month low of $65.75 and a 12 month high of $130.37.

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 (EPS) for the quarter, topping analysts' consensus estimates of $1.17 by $0.05. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%.The company had revenue of $17.25 billion during the quarter, compared to analyst estimates of $16.84 billion. During the same quarter in the previous year, the firm posted $0.99 EPS. The firm's quarterly revenue was up 17.6% on a year-over-year basis. 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. As a group, research analysts predict that Cisco Systems, Inc. will post 4.09 earnings per share for the current year.

Cisco Systems Announces Dividend

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

Analyst Upgrades and Downgrades

CSCO has been the topic of several analyst reports. Wall Street Zen raised Cisco Systems from a "hold" rating to a "buy" rating in a research report on Saturday. Zacks Research downgraded shares of Cisco Systems from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 4th. Weiss Ratings upgraded shares of Cisco Systems from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, May 29th. Citic Securities increased their price objective on shares of Cisco Systems from $90.00 to $130.00 in a report on Friday, May 15th. Finally, KeyCorp lifted their price objective on shares of Cisco Systems from $130.00 to $135.00 and gave the company an "overweight" rating in a research report on Thursday, August 13th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $129.43.

Insider Transactions at Cisco Systems

In other news, insider Jeetendra I. Patel sold 7,170 shares of the company's stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $111.57, for a total value of $799,956.90. Following the completion of the sale, the insider directly owned 230,593 shares of the company's stock, valued at approximately $25,727,261.01. This represents a 3.02% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 7,127 shares of the stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $119.91, for a total transaction of $854,598.57. Following the completion of the transaction, the executive vice president owned 140,857 shares of the company's stock, valued at $16,890,162.87. This trade represents a 4.82% 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. Insiders have sold a total of 69,179 shares of company stock worth $7,985,229 over the last ninety days. Insiders own 0.01% of the company's 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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