Palouse Capital Management Inc. Trims Position in Cisco Systems, Inc. $CSCO

Key Points

• Palouse Capital Management cut its Cisco stake by 82.1% in the second quarter, selling 27,697 shares and retaining 6,053 shares valued at approximately $711,000. Institutional investors collectively own 73.33% of Cisco.
• Cisco reported quarterly earnings of $1.06 per share on $15.84 billion in revenue, exceeding analyst expectations, while revenue increased 12% year over year. The company also maintains a quarterly dividend of $0.42 per share, equivalent to a 1.4% yield.
• Analysts remain generally positive, citing resilient AI infrastructure and networking demand; Cisco has a consensus “Moderate Buy” rating and a $123.14 price target. However, risks include cautious IT spending, deployment delays and a recent downgrade from Zacks Research.

Palouse Capital Management Inc. lessened its holdings in shares of Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 82.1% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 6,053 shares of the network equipment provider's stock after selling 27,697 shares during the quarter. Palouse Capital Management Inc.'s holdings in Cisco Systems were worth $711,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also added to or reduced their stakes in the company. Intesa Sanpaolo Wealth Management purchased a new stake in shares of Cisco Systems in the 4th quarter worth about $25,000. MidAtlantic Capital Management Inc. bought a new stake in shares of Cisco Systems during the 4th quarter valued at about $25,000. Networth Advisors LLC increased its position in shares of Cisco Systems by 276.4% during the first quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider's stock valued at $26,000 after buying an additional 246 shares during the period. Manning & Napier Advisors LLC raised its stake in Cisco Systems by 137.0% in the first 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 in the last quarter. Finally, Financial Life Planners bought a new position in Cisco Systems in the first quarter worth about $27,000. Institutional investors own 73.33% of the company's stock.

Cisco Systems Price Performance

Shares of NASDAQ CSCO opened at $120.88 on Friday. Cisco Systems, Inc. has a fifty-two week low of $65.75 and a fifty-two week high of $130.37. The company has a 50 day simple moving average of $117.72 and a two-hundred day simple moving average of $97.37. The company has a market capitalization of $476.44 billion, a price-to-earnings ratio of 39.25, a P/E/G ratio of 2.74 and a beta of 1.02. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.81 and a current ratio of 0.92.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its quarterly earnings data on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share for the quarter, beating the consensus estimate of $1.03 by $0.03. The firm had revenue of $15.84 billion during the quarter, compared to analysts' expectations of $15.56 billion. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The firm's quarterly revenue was up 12.0% on a year-over-year basis. During the same period in the previous year, the company earned $0.96 earnings per share. 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. Analysts expect that Cisco Systems, Inc. will post 3.54 EPS for the current fiscal year.

Cisco Systems Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 22nd. Stockholders of record on Monday, July 6th were issued a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend was Monday, July 6th. Cisco Systems's dividend payout ratio is presently 54.55%.

Analysts Set New Price Targets

CSCO has been the topic of several research reports. JPMorgan Chase & Co. lifted their price objective on Cisco Systems from $95.00 to $96.00 in a research report on Monday, May 11th. The Goldman Sachs Group increased their target price on Cisco Systems from $116.00 to $125.00 and gave the stock a "neutral" rating in a research report on Wednesday, June 3rd. Citic Securities raised their target price on Cisco Systems from $90.00 to $130.00 in a research note on Friday, May 15th. UBS Group lifted their price target on Cisco Systems from $95.00 to $132.00 and gave the company a "buy" rating in a research report on Thursday, May 14th. Finally, HSBC raised Cisco Systems from a "hold" rating to a "buy" rating and upped their price target for the stock from $77.00 to $137.00 in a research note on Friday, May 15th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $123.14.

Key Headlines Impacting Cisco Systems

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

• Positive Sentiment: Analysts expect continued strength in AI infrastructure demand, supported by checks with hyperscale cloud and “neocloud” customers. UBS believes Cisco could exceed consensus revenue and earnings estimates for the July quarter as AI networking orders and campus-networking spending remain resilient. Cisco Systems to report amid expectations of continued AI infrastructure strength
• Positive Sentiment: Recent coverage highlights Cisco’s potential to participate in the AI networking boom through demand for high-speed connectivity, data-center infrastructure and related networking products. The company has been one of the Dow Jones’ strongest performers this year, reflecting optimism about its AI growth trajectory. Can Cisco Systems Lead the AI Networking Boom?
• Positive Sentiment: Cisco is participating in Chainguard’s Athena Coalition alongside major technology and financial companies to help automate the remediation of open-source software vulnerabilities. The initiative reinforces Cisco’s cybersecurity ecosystem exposure, though it is unlikely to have an immediate material effect on revenue. Apiiro Joins Chainguard’s Athena Coalition
• Neutral Sentiment: Cisco’s August 12 earnings announcement is the next major catalyst. Investor focus will be on AI-related orders, product demand, margins and management’s outlook after the company previously reported revenue growth and an earnings beat. Cisco Schedules Conference Call for Q4 Fiscal Year 2026 Financial Results
• Negative Sentiment: Zacks Research downgraded CSCO from “strong buy” to “hold,” potentially pressuring the shares after their substantial yearly advance. Broader networking-stock commentary also points to cautious IT spending, higher costs and deployment delays as risks to near-term results. What’s in Store for These Networking Stocks This Earnings Season?

Insider Activity

In related news, EVP Thimaya K. Subaiya sold 7,127 shares of the company's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $119.91, for a total transaction of $854,598.57. Following the completion of the sale, the executive vice president owned 140,857 shares in the company, valued at approximately $16,890,162.87. This represents a 4.82% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Deborah L. Stahlkopf sold 6,586 shares of the stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $117.31, for a total value of $772,603.66. Following the completion of the transaction, the executive vice president directly owned 177,223 shares in the company, valued at approximately $20,790,030.13. This represents a 3.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 47,650 shares of company stock worth $5,668,823. Insiders own 0.01% of the company's stock.

Cisco Systems Company Profile

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.

Want to see what other hedge funds are holding CSCO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cisco Systems, Inc. (NASDAQ:CSCO - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source