Migdal Insurance & Financial Holdings Ltd. Acquires 401,888 Shares of Cisco Systems, Inc. $CSCO

Key Points

• Migdal Insurance & Financial Holdings increased its Cisco stake by 988.7% in the third quarter, buying 401,888 shares to reach 442,536 shares valued at about $47.6 million. Institutional investors and hedge funds collectively own 73.33% of Cisco.
• Cisco beat quarterly expectations, reporting $18.52 billion in revenue and $1.40 adjusted EPS, and set fiscal 2027 EPS guidance of $5.47–$5.53. The company also raised its revenue outlook and AI revenue target amid strong networking demand, though product orders missed expectations.
• CSCO fell 6.2% in Friday trading to $95.64. Analysts’ average price target is $125.64 with a “Moderate Buy” consensus; Cisco declared a quarterly dividend of $0.42 per share.

Migdal Insurance & Financial Holdings Ltd. boosted its holdings in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 988.7% during the 3rd quarter, according to its most recent disclosure with the SEC. The firm owned 442,536 shares of the network equipment provider's stock after buying an additional 401,888 shares during the period. Migdal Insurance & Financial Holdings Ltd.'s holdings in Cisco Systems were worth $47,629,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the business. Bridgewater Advisors Inc. purchased a new position in Cisco Systems in the 2nd quarter worth approximately $6,442,000. Beacon Pointe Advisors LLC acquired a new stake in Cisco Systems in the second quarter valued at approximately $60,009,000. Western Wealth Management LLC raised its stake in shares of Cisco Systems by 60.5% during the first quarter. Western Wealth Management LLC now owns 76,372 shares of the network equipment provider's stock valued at $5,926,000 after purchasing an additional 28,792 shares during the period. ABN AMRO Bank N.V. purchased a new stake in shares of Cisco Systems during the second quarter valued at approximately $19,114,000. Finally, Envestnet Portfolio Solutions Inc. lifted its position in shares of Cisco Systems by 24.6% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 363,506 shares of the network equipment provider's stock worth $47,287,000 after purchasing an additional 71,774 shares in the last quarter. 73.33% of the stock is owned by institutional investors and hedge funds.

Cisco Systems Stock Down 6.2%

Shares of CSCO traded down $6.37 during trading on Friday, reaching $95.64. The company's stock had a trading volume of 28,551,419 shares, compared to its average volume of 19,473,690. The company has a fifty day moving average of $107.76 and a two-hundred day moving average of $102.21. Cisco Systems, Inc. has a twelve month low of $72.80 and a twelve month high of $130.37. The company has a market cap of $377.07 billion, a price-to-earnings ratio of 25.44, a P/E/G ratio of 2.09 and a beta of 1.01. The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its earnings results on Thursday, November 12th. The network equipment provider reported $1.40 EPS for the quarter, beating the consensus estimate of $1.33 by $0.07. Cisco Systems had a return on equity of 33.06% and a net margin of 22.34%. The company had revenue of $18.52 billion during the quarter, compared to analysts' expectations of $18.12 billion. During the same period in the prior year, the business posted $1.00 EPS. Cisco Systems has set its Q2 2027 guidance at 1.340-1.360 EPS and its FY 2027 guidance at 5.470-5.530 EPS. On average, sell-side analysts predict that Cisco Systems, Inc. will post 4.48 EPS for the current fiscal year.

Cisco Systems Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, January 20th. Investors of record on Monday, January 4th will be issued a $0.42 dividend. The ex-dividend date of this dividend is Monday, January 4th. This represents a $1.68 annualized dividend and a yield of 1.8%. Cisco Systems's dividend payout ratio is currently 50.30%.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on CSCO. Citigroup decreased their target price on shares of Cisco Systems from $139.00 to $120.00 and set a "buy" rating for the company in a research note on Friday. KeyCorp raised their price target on shares of Cisco Systems from $130.00 to $135.00 and gave the company an "overweight" rating in a report on Thursday, August 13th. Freedom Capital raised shares of Cisco Systems from a "hold" rating to a "strong-buy" rating in a research note on Sunday, August 16th. HSBC lowered shares of Cisco Systems from a "buy" rating to a "hold" rating and cut their price objective for the stock from $137.00 to $120.00 in a report on Friday, August 14th. Finally, UBS Group upped their price objective on shares of Cisco Systems from $132.00 to $138.00 and gave the company a "buy" rating in a research report on Thursday, August 13th. Three equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $125.64.

Insiders Place Their Bets

In other Cisco Systems news, EVP Thimaya Subaiya sold 5,832 shares of the stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $111.47, for a total transaction of $650,093.04. Following the transaction, the executive vice president directly owned 128,382 shares in the company, valued at $14,310,741.54. This represents a 4.35% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 680 shares of the firm's stock in a transaction on Monday, September 14th. The stock was sold at an average price of $110.18, for a total transaction of $74,922.40. Following the transaction, the executive vice president directly owned 163,337 shares of the company's stock, valued at approximately $17,996,470.66. This represents a 0.41% 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. Insiders have sold a total of 6,824 shares of company stock worth $759,392 over the last quarter. 0.01% of the stock is currently owned by insiders.

Cisco Systems News Summary

These are some of the CSCO news items that stood out recently:

• Positive Sentiment: Cisco reported revenue of $18.5 billion and adjusted EPS of $1.40, beating estimates. It raised fiscal 2027 revenue guidance to $74.8–$75.8 billion and EPS guidance to $5.47–$5.53, and lifted its AI revenue target to $9 billion. Strong AI-infrastructure and networking demand underpin the outlook. Reuters: Cisco raises annual revenue forecast
• Neutral Sentiment: Several analysts lowered price targets after the results, but kept positive or neutral ratings. Citigroup cut its target to $120 and Wells Fargo to $130, both retaining Buy or Overweight; other firms also trimmed targets. The revisions reflect caution about near-term execution, even as analysts see potential upside. Benzinga: Analyst cuts Cisco price target
• Negative Sentiment: Fiscal Q1 product orders rose 21%, but missed expectations and slowed from the prior period, raising questions about the pace of demand growth. Yahoo Finance: Cisco down on expectations miss

Cisco Systems Profile

Cisco Systems, Inc. develops networking, cybersecurity, collaboration and observability technologies for businesses, governments and other organizations. Its products include routers, switches, wireless systems and data center infrastructure, along with security software and services that help organizations connect and protect their networks. The company also provides collaboration tools through its Webex platform and observability capabilities through its software offerings, including technology from Splunk, which Cisco acquired in 2024.

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