SVB Wealth LLC Cuts Stake in Cisco Systems, Inc. $CSCO

Key Points

• SVB Wealth LLC cut its Cisco Systems stake by 9.0% in the first quarter, selling 15,473 shares and leaving it with 155,625 shares valued at about $12.1 million.
• Wall Street sentiment remains constructive, with multiple analysts raising price targets and Cisco currently holding a Moderate Buy consensus rating and an average target price of $122.90.
• Cisco reported better-than-expected quarterly results, with EPS of $1.06 on revenue of $15.84 billion, and it also announced a quarterly dividend of $0.42 per share payable July 22.

SVB Wealth LLC reduced its position in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 9.0% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 155,625 shares of the network equipment provider's stock after selling 15,473 shares during the quarter. Cisco Systems accounts for approximately 0.8% of SVB Wealth LLC's investment portfolio, making the stock its 26th largest holding. SVB Wealth LLC's holdings in Cisco Systems were worth $12,075,000 at the end of the most recent quarter.

Other hedge funds also recently added to or reduced their stakes in the company. MidAtlantic Capital Management Inc. purchased a new position in Cisco Systems during the 4th quarter valued at about $25,000. Intesa Sanpaolo Wealth Management purchased a new stake in shares of Cisco Systems in the 4th quarter worth approximately $25,000. Jessup Wealth Management Inc bought a new position in shares of Cisco Systems during the fourth quarter valued at approximately $29,000. Board of the Pension Protection Fund bought a new position in shares of Cisco Systems during the fourth quarter valued at approximately $31,000. Finally, EQ Wealth Advisors LLC purchased a new position in Cisco Systems during the fourth quarter valued at approximately $31,000. 73.33% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the company. CICC Research upped their target price on Cisco Systems from $96.00 to $125.00 and gave the stock an "outperform" rating in a report on Monday, May 18th. Weiss Ratings upgraded Cisco Systems from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, May 29th. Evercore boosted their price target on Cisco Systems from $110.00 to $150.00 and gave the stock an "outperform" rating in a research report on Thursday, May 14th. Zacks Research cut Cisco Systems from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. Finally, BNP Paribas Exane raised their price objective on Cisco Systems from $87.00 to $132.00 and gave the company an "outperform" rating in a research report on Thursday, May 14th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $122.90.

Insider Buying and Selling

In other news, EVP Oliver Tuszik sold 2,607 shares of the company's stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $121.12, for a total transaction of $315,759.84. Following the transaction, the executive vice president owned 172,727 shares in the company, valued at $20,920,694.24. This represents a 1.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,400 shares of the stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $120.03, for a total transaction of $2,568,642.00. Following the completion of the transaction, the chief executive officer directly owned 637,085 shares of the company's stock, valued at $76,469,312.55. The trade was a 3.25% 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. Insiders sold a total of 47,650 shares of company stock valued at $5,668,823 in the last 90 days. 0.01% of the stock is owned by insiders.

Cisco Systems Price Performance

Shares of CSCO opened at $121.53 on Tuesday. The company has a market cap of $479.00 billion, a price-to-earnings ratio of 39.46, a price-to-earnings-growth ratio of 3.05 and a beta of 1.01. Cisco Systems, Inc. has a twelve month low of $65.75 and a twelve month high of $130.37. The company has a quick ratio of 0.81, a current ratio of 0.92 and a debt-to-equity ratio of 0.40. The company has a 50 day moving average of $106.91 and a two-hundred day moving average of $88.40.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its quarterly earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.03 by $0.03. Cisco Systems had a return on equity of 28.44% and a net margin of 20.14%.The business had revenue of $15.84 billion for the quarter, compared to the consensus estimate of $15.56 billion. During the same period in the prior year, the firm posted $0.96 earnings per share. The business's quarterly revenue was up 12.0% on a year-over-year basis. 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. As a group, analysts predict that Cisco Systems, Inc. will post 3.54 earnings per share for the current fiscal year.

Cisco Systems Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 22nd. Investors of record on Monday, July 6th will be given a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Monday, July 6th. Cisco Systems's dividend payout ratio is currently 54.55%.

Cisco Systems 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.

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