Motley Fool Asset Management LLC Buys 273,992 Shares of Cisco Systems, Inc. $CSCO

Key Points

• Motley Fool Asset Management initiated a Cisco Systems stake of 273,992 shares valued at approximately $29.5 million, making CSCO its 18th-largest holding. Institutional investors collectively own 73.33% of the company.
• Analysts remain broadly positive, with an average rating of “Moderate Buy” and an average price target of $128.52; several firms recently raised their targets to between $135 and $138.
• Cisco reported quarterly EPS and revenue above expectations, with revenue up 17.6% year over year, and maintains a $0.42 quarterly dividend. However, its valuation and recent ETF selling may create near-term pressure despite optimism around AI security and networking demand.

Motley Fool Asset Management LLC acquired a new stake in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 273,992 shares of the network equipment provider's stock, valued at approximately $29,490,000. Cisco Systems accounts for about 1.1% of Motley Fool Asset Management LLC's holdings, making the stock its 18th biggest position.

A number of other hedge funds have also recently added to or reduced their stakes in CSCO. Bridgewater Advisors Inc. acquired a new position in shares of Cisco Systems during the second quarter valued at approximately $6,442,000. Beacon Pointe Advisors LLC acquired a new stake in shares of Cisco Systems in the second quarter worth approximately $60,009,000. Western Wealth Management LLC increased its position 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 worth $5,926,000 after purchasing an additional 28,792 shares in the last quarter. ABN AMRO Bank N.V. acquired a new position in Cisco Systems in the 2nd quarter valued at $19,114,000. Finally, USS Investment Management Ltd raised its stake in Cisco Systems by 1.8% in the 1st quarter. USS Investment Management Ltd now owns 686,466 shares of the network equipment provider's stock valued at $53,253,000 after purchasing an additional 12,251 shares during the last quarter. 73.33% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms recently weighed in on CSCO. Morgan Stanley 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 report on Thursday, August 13th. KeyCorp increased their price objective 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. UBS Group raised their target price on shares of Cisco Systems from $132.00 to $138.00 and gave the stock a "buy" rating in a research note on Thursday, August 13th. Wall Street Zen upgraded Cisco Systems from a "hold" rating to a "buy" rating in a report on Sunday, October 11th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Cisco Systems in a research report on Wednesday, August 26th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $128.52.

Cisco Systems Price Performance

Shares of CSCO opened at $110.29 on Thursday. The firm has a 50-day simple moving average of $110.14 and a two-hundred day simple moving average of $100.68. The stock has a market cap of $434.83 billion, a PE ratio of 33.02, a P/E/G ratio of 2.22 and a beta of 0.99. Cisco Systems, Inc. has a 1-year low of $70.54 and a 1-year high of $130.37. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.93 and a quick ratio of 0.79.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.05. The firm had revenue of $17.25 billion for the quarter, compared to the consensus estimate of $16.84 billion. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%. The company's quarterly revenue was up 17.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.99 EPS. 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, analysts forecast that Cisco Systems, Inc. will post 4.42 EPS for the current year.

Cisco Systems Dividend Announcement

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

Insider Transactions at Cisco Systems

In other Cisco Systems news, EVP Deborah L. Stahlkopf sold 6,487 shares of the company's stock in a transaction on Friday, August 14th. The shares were sold at an average price of $111.53, for a total value of $723,495.11. Following the completion of the transaction, the executive vice president owned 167,116 shares in the company, valued at $18,638,447.48. This represents a 3.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 5,832 shares of the company's 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 completion of the transaction, the executive vice president owned 128,382 shares of the company's stock, valued at $14,310,741.54. This represents a 4.35% decrease in their position. 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 44,869 shares of company stock valued at $5,005,620 over the last ninety days. Company insiders own 0.01% of the company's stock.

Key Cisco Systems News

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

• Positive Sentiment: Cisco is emphasizing AI security and “quantum-safe” technology as enterprises build out AI infrastructure. The strategy could create additional demand for Cisco’s networking, cybersecurity and observability products. What Is Cisco Signaling With Its AI Security And Quantum Safe Push?
• Positive Sentiment: Cisco President and Chief Product Officer Jeetu Patel said AI-agent safety will be a major technology issue, highlighting security risks that could increase demand for Cisco’s security and infrastructure solutions. AI Agent Safety Will Be the Issue of Our Time
• Positive Sentiment: Cisco open-sourced Project Quarry, a tool designed to detect rogue AI agents. The initiative could strengthen Cisco’s credibility in securing enterprise AI deployments and support future software and security opportunities. Cisco Open Sources Project Quarry to Detect Rogue AI Agents
• Positive Sentiment: Analyst consensus price targets reportedly moved higher, while Cisco’s partner awards and channel activity point to continued customer and reseller engagement. Cisco Systems Consensus Price Target Rises
• Neutral Sentiment: NTT DATA’s global AI Factory expansion may broaden demand for secure networking and AI infrastructure, although the announcement does not identify a specific Cisco contract or near-term revenue contribution. NTT DATA Expands AI Factory Footprint
• Negative Sentiment: Exchange-traded funds were net sellers of Cisco, creating near-term technical pressure independent of the company’s operating outlook. ETFs Are Net Sellers of Cisco
• Negative Sentiment: Investors are questioning whether Cisco’s strong multi-year advance and AI-related optimism are fully supported by future cash flow. A relatively elevated valuation leaves less room for execution disappointments. Can Cisco Stay Cheap as AI Cash Flow Builds?

Cisco Systems Profile

Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration and observability solutions for businesses, government organizations and service providers. Its offerings include routers, switches, wireless networking equipment, data-center infrastructure, security software and services, as well as technologies that support cloud and hybrid IT environments.

The company also provides collaboration tools through its Webex portfolio, cloud-managed networking through Cisco Meraki and security and observability capabilities that include technologies from Splunk, which Cisco acquired in 2024.

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