Royal London Asset Management Ltd. Increases Stock Position in Cisco Systems, Inc. $CSCO

Key Points

• Royal London Asset Management increased its Cisco position by 5.1% in the second quarter, bringing its holdings to 3.30 million shares valued at approximately $387.3 million. Institutional investors now own 73.33% of Cisco.
• Cisco reported quarterly EPS of $1.22 and revenue of $17.25 billion, exceeding analyst expectations, with revenue up 17.6% year over year. The company also announced a quarterly dividend of $0.42 per share.
• Analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and an average price target of $129.43, though Cisco’s valuation remains a concern with a P/E ratio above 32. Insiders sold 53,611 shares worth about $6.1 million during the last quarter.

Royal London Asset Management Ltd. lifted its holdings in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 5.1% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 3,297,324 shares of the network equipment provider's stock after buying an additional 159,777 shares during the quarter. Cisco Systems makes up about 0.7% of Royal London Asset Management Ltd.'s holdings, making the stock its 19th biggest holding. Royal London Asset Management Ltd. owned 0.08% of Cisco Systems worth $387,304,000 at the end of the most recent quarter.

Other institutional investors also recently modified their holdings of the company. Mufg Securities Americas Inc. lifted its position in Cisco Systems by 8.8% during the 2nd quarter. Mufg Securities Americas Inc. now owns 118,965 shares of the network equipment provider's stock valued at $13,974,000 after acquiring an additional 9,659 shares during the period. Nissay Asset Management Corp Japan boosted its stake in Cisco Systems by 5.0% during the second quarter. Nissay Asset Management Corp Japan now owns 1,185,467 shares of the network equipment provider's stock worth $139,245,000 after acquiring an additional 56,899 shares in the last quarter. Navellier & Associates Inc. grew its holdings in Cisco Systems by 4.7% in the second quarter. Navellier & Associates Inc. now owns 58,206 shares of the network equipment provider's stock worth $6,837,000 after purchasing an additional 2,622 shares during the period. Lincoln Capital Corp grew its holdings in Cisco Systems by 27.1% in the second quarter. Lincoln Capital Corp now owns 4,687 shares of the network equipment provider's stock worth $551,000 after purchasing an additional 1,000 shares during the period. Finally, Field & Main Bank increased its stake in shares of Cisco Systems by 3.5% during the second quarter. Field & Main Bank now owns 27,460 shares of the network equipment provider's stock valued at $3,225,000 after purchasing an additional 918 shares in the last quarter. 73.33% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other news, EVP Deborah L. Stahlkopf sold 6,487 shares of the business's stock in a transaction on Friday, August 14th. The stock was 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. The trade was a 3.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeetendra I. Patel sold 7,170 shares of the company's stock in a transaction 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 transaction, the insider directly owned 230,593 shares in the company, valued at approximately $25,727,261.01. The trade was a 3.02% decrease in their ownership of the stock. 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. In the last quarter, insiders have sold 53,611 shares of company stock worth $6,066,680. 0.01% of the stock is owned by corporate insiders.

More Cisco Systems News

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

• Positive Sentiment: Cisco launched a Sovereign Critical Infrastructure portfolio in Canada and expanded its Secure AI Factory with NVIDIA and Supermicro. The offerings target enterprises, neocloud providers and sovereign-cloud customers seeking integrated AI compute, cooling and networking infrastructure. Cisco Unveils Sovereign and AI Infrastructure Offerings
• Positive Sentiment: Morgan Stanley maintained a $135 price target, citing Cisco’s potential supply advantage through TSMC as shortages continue to affect the AI infrastructure market. This supports the view that Cisco may be positioned to benefit from strong AI networking demand. Morgan Stanley Reveals Cisco’s Supply Edge
• Positive Sentiment: Cisco’s NVIDIA partnership is also linked to the industry’s shift toward liquid-cooled, high-density AI systems, potentially expanding the company’s role in the broader AI infrastructure buildout. NVIDIA’s AI Chips and Liquid Cooling
• Positive Sentiment: Analysts comparing Cisco with Hewlett Packard Enterprise highlighted Cisco’s strong hyperscaler AI orders, networking growth and expanding security business as long-term competitive advantages. HPE vs. CSCO
• Neutral Sentiment: Cisco gave all approximately 90,000 employees access to personal AI agents, demonstrating broad internal adoption of AI, though the immediate financial impact is unclear. Cisco Gives Employees AI Agents
• Negative Sentiment: A growth-stock analysis questioned whether Cisco can sustain enough growth to support its premium valuation, reviving concerns that enthusiasm surrounding AI networking may have outpaced underlying fundamentals. With a P/E ratio above 30, the stock may be particularly sensitive to any slowdown in growth expectations. Growth Stock Analysis

Cisco Systems Stock Down 2.0%

Shares of Cisco Systems stock opened at $109.93 on Friday. The company has a 50-day simple moving average of $115.21 and a two-hundred day simple moving average of $101.24. The stock has a market capitalization of $433.28 billion, a PE ratio of 32.91, a price-to-earnings-growth ratio of 2.16 and a beta of 1.02. Cisco Systems, Inc. has a 52-week low of $66.13 and a 52-week high of $130.37. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.79 and a current ratio of 0.93.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, beating analysts' consensus estimates of $1.17 by $0.05. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The firm had revenue of $17.25 billion for the quarter, compared to analysts' expectations of $16.84 billion. During the same quarter in the prior year, the company posted $0.99 earnings per share. The business's revenue for the quarter 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. On average, analysts anticipate that Cisco Systems, Inc. will post 4.44 EPS for the current fiscal year.

Cisco Systems Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 21st. Shareholders 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 dividend on an annualized basis and a dividend yield of 1.5%. Cisco Systems's dividend payout ratio (DPR) is presently 50.30%.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on CSCO shares. Citigroup lifted their target price on shares of Cisco Systems from $90.00 to $112.00 and gave the company a "buy" rating in a report on Thursday, May 14th. Rosenblatt Securities upped their price target on Cisco Systems from $150.00 to $165.00 and gave the stock a "buy" rating in a research note on Thursday, August 13th. Truist Financial raised their price objective on Cisco Systems from $125.00 to $140.00 and gave the company a "buy" rating in a research report on Thursday, August 13th. UBS Group lifted their price objective on Cisco Systems from $132.00 to $138.00 and gave the company a "buy" rating in a research note on Thursday, August 13th. Finally, Wall Street Zen raised Cisco Systems from a "hold" rating to a "buy" rating in a report on Saturday, August 15th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Cisco Systems currently has a consensus rating of "Moderate Buy" and an average target price of $129.43.

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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