Rheos Capital Works Inc. Purchases 100,000 Shares of Cisco Systems, Inc. $CSCO

Key Points

• Rheos Capital Works Inc. increased its stake in Cisco Systems, Inc. by 30.8%, acquiring 100,000 additional shares, bringing their total holdings to 425,000 shares worth approximately $29.49 million.
• Cisco reported a quarterly earnings per share of $0.99, exceeding expectations and marking a 7.6% year-over-year revenue growth to $14.67 billion.
• The company announced a quarterly dividend of $0.41, set to be paid on October 22, with a yield of 2.4% and a payout ratio of 62.6%.

Rheos Capital Works Inc. boosted its position in shares of Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 30.8% in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 425,000 shares of the network equipment provider's stock after buying an additional 100,000 shares during the quarter. Cisco Systems makes up about 1.7% of Rheos Capital Works Inc.'s holdings, making the stock its 18th biggest holding. Rheos Capital Works Inc.'s holdings in Cisco Systems were worth $29,487,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Chesapeake Wealth Management increased its position in shares of Cisco Systems by 5.7% in the second quarter. Chesapeake Wealth Management now owns 20,692 shares of the network equipment provider's stock valued at $1,436,000 after acquiring an additional 1,125 shares during the period. Prairie Sky Financial Group LLC bought a new stake in shares of Cisco Systems in the second quarter worth about $200,000. Deroy & Devereaux Private Investment Counsel Inc. increased its holdings in Cisco Systems by 8.3% during the 2nd quarter. Deroy & Devereaux Private Investment Counsel Inc. now owns 6,545 shares of the network equipment provider's stock valued at $454,000 after purchasing an additional 499 shares during the period. IFG Advisors LLC raised its position in Cisco Systems by 3.7% during the 2nd quarter. IFG Advisors LLC now owns 8,305 shares of the network equipment provider's stock valued at $576,000 after purchasing an additional 294 shares during the last quarter. Finally, Mutual Advisors LLC lifted its holdings in Cisco Systems by 0.6% in the 2nd quarter. Mutual Advisors LLC now owns 153,094 shares of the network equipment provider's stock worth $10,516,000 after buying an additional 981 shares during the period. Hedge funds and other institutional investors own 73.33% of the company's stock.

Cisco Systems Stock Up 1.8%

NASDAQ:CSCO opened at $68.66 on Wednesday. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.00 and a quick ratio of 0.91. The firm's 50-day moving average price is $68.24 and its 200-day moving average price is $64.98. The company has a market capitalization of $271.43 billion, a PE ratio of 26.21, a P/E/G ratio of 2.84 and a beta of 0.97. Cisco Systems, Inc. has a 1-year low of $52.11 and a 1-year high of $72.55.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its quarterly earnings data on Wednesday, August 13th. The network equipment provider reported $0.99 EPS for the quarter, topping the consensus estimate of $0.98 by $0.01. The business had revenue of $14.67 billion for the quarter, compared to analyst estimates of $14.63 billion. Cisco Systems had a net margin of 18.45% and a return on equity of 27.06%. Cisco Systems's quarterly revenue was up 7.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.87 earnings per share. Cisco Systems has set its Q1 2026 guidance at 0.970-0.990 EPS. FY 2026 guidance at 4.000-4.060 EPS. On average, equities analysts predict that Cisco Systems, Inc. will post 3.04 EPS for the current fiscal year.

Cisco Systems Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 22nd. Investors of record on Friday, October 3rd will be paid a $0.41 dividend. The ex-dividend date is Friday, October 3rd. This represents a $1.64 annualized dividend and a dividend yield of 2.4%. Cisco Systems's dividend payout ratio is presently 62.60%.

Analysts Set New Price Targets

Several research firms have recently issued reports on CSCO. Weiss Ratings reissued a "buy (b-)" rating on shares of Cisco Systems in a research note on Wednesday, October 8th. CICC Research began coverage on shares of Cisco Systems in a research report on Monday, July 14th. They set an "outperform" rating and a $78.00 price objective on the stock. Wolfe Research began coverage on shares of Cisco Systems in a report on Tuesday, July 8th. They issued a "peer perform" rating for the company. Piper Sandler lifted their target price on shares of Cisco Systems from $64.00 to $70.00 and gave the company a "neutral" rating in a research note on Thursday, August 14th. Finally, Wall Street Zen downgraded shares of Cisco Systems from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 12th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat, Cisco Systems has an average rating of "Moderate Buy" and an average price target of $74.72.

Insider Activity at Cisco Systems

In other Cisco Systems news, CEO Charles Robbins sold 30,557 shares of Cisco Systems stock in a transaction on Friday, August 15th. The stock was sold at an average price of $66.63, for a total transaction of $2,036,012.91. Following the completion of the transaction, the chief executive officer owned 639,000 shares in the company, valued at approximately $42,576,570. The trade was a 4.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Thimaya K. Subaiya sold 7,511 shares of the stock in a transaction on Wednesday, August 20th. The stock was sold at an average price of $66.84, for a total value of $502,035.24. Following the completion of the sale, the executive vice president directly owned 161,467 shares in the company, valued at approximately $10,792,454.28. This represents a 4.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 82,965 shares of company stock worth $5,559,996 over the last quarter. 0.01% of the stock is currently owned by company insiders.

Cisco Systems Profile

Cisco Systems, Inc designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization.

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