SWS Partners Takes Position in Cisco Systems, Inc. $CSCO

Key Points

• SWS Partners bought 26,634 Cisco shares during the second quarter, valued at approximately $3.13 million. Institutional investors collectively own 73.33% of CSCO.
• Cisco exceeded quarterly expectations with $1.22 EPS and $17.25 billion in revenue, up 17.6% year over year, as AI infrastructure demand accelerated. Management also issued upbeat fiscal 2027 guidance, though investors remain concerned about margin pressure from lower-margin AI hardware.
• Cisco declared a quarterly dividend of $0.42 per share, equal to a 1.5% annualized yield. Analysts maintain a consensus “Moderate Buy” rating with a $129.43 price target, while insiders have recently sold shares under pre-arranged trading plans.

SWS Partners bought a new stake in shares of Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 26,634 shares of the network equipment provider's stock, valued at approximately $3,128,000.

Several other institutional investors and hedge funds have also bought and sold shares of the stock. Cozad Asset Management Inc. lifted its position in Cisco Systems by 0.3% in the first quarter. Cozad Asset Management Inc. now owns 26,203 shares of the network equipment provider's stock valued at $2,033,000 after purchasing an additional 87 shares during the last quarter. Dogwood Wealth Management LLC boosted its stake in shares of Cisco Systems by 3.9% during the second quarter. Dogwood Wealth Management LLC now owns 2,413 shares of the network equipment provider's stock valued at $283,000 after purchasing an additional 90 shares during the period. Financial Insights Inc. grew its holdings in shares of Cisco Systems by 1.5% in the first quarter. Financial Insights Inc. now owns 6,220 shares of the network equipment provider's stock worth $483,000 after purchasing an additional 92 shares during the last quarter. CPA Asset Management Group LLC increased its stake in shares of Cisco Systems by 1.8% in the second quarter. CPA Asset Management Group LLC now owns 5,335 shares of the network equipment provider's stock worth $627,000 after buying an additional 93 shares during the period. Finally, Southern Financial Group LLC increased its stake in shares of Cisco Systems by 1.1% in the first quarter. Southern Financial Group LLC now owns 9,159 shares of the network equipment provider's stock worth $711,000 after buying an additional 102 shares during the period. 73.33% of the stock is currently owned by institutional investors.

Cisco Systems Stock Performance

Shares of CSCO stock opened at $111.68 on Friday. The firm has a market capitalization of $440.18 billion, a price-to-earnings ratio of 33.44, a PEG ratio of 2.56 and a beta of 1.02. The stock has a fifty day moving average of $117.03 and a 200 day moving average of $99.09. Cisco Systems, Inc. has a 52 week low of $65.75 and a 52 week high of $130.37. The company has a quick ratio of 0.81, a current ratio of 0.93 and a debt-to-equity ratio of 0.39.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (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 business had revenue of $17.25 billion for the quarter, compared to the consensus estimate of $16.84 billion. During the same period in the previous year, the firm earned $0.99 EPS. The company's quarterly revenue was up 17.6% compared to the same quarter last year. 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, research analysts expect that Cisco Systems, Inc. will post 4 earnings per share for the current year.

Cisco Systems Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 21st. Investors of record on Friday, October 2nd will be given a dividend of $0.42 per share. The ex-dividend date is Friday, October 2nd. This represents a $1.68 annualized dividend and a dividend yield of 1.5%. Cisco Systems's payout ratio is currently 54.55%.

Insider Activity at Cisco Systems

In related news, CEO Charles Robbins sold 21,400 shares of the stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $120.03, for a total value 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. This represents a 3.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 7,127 shares of the firm's stock in a transaction dated 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 of the company's stock, valued at $16,890,162.87. This trade represents a 4.82% decrease in their ownership of the stock. 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 31,134 shares of company stock worth $3,739,000 over the last 90 days. 0.01% of the stock is owned by company insiders.

Analyst Ratings Changes

Several brokerages have weighed in on CSCO. CICC Research increased their price target on shares of Cisco Systems from $96.00 to $125.00 and gave the company an "outperform" rating in a research report on Monday, May 18th. New Street Research boosted their price objective on shares of Cisco Systems from $82.00 to $122.00 and gave the company a "neutral" rating in a research report on Thursday, May 14th. BNP Paribas Exane upped their price objective on shares of Cisco Systems from $87.00 to $132.00 and gave the company an "outperform" rating in a research note on Thursday, May 14th. Zacks Research lowered shares of Cisco Systems from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 4th. Finally, JPMorgan Chase & Co. raised their target price on Cisco Systems from $95.00 to $96.00 in a research note on Monday, May 11th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $129.43.

Key Headlines Impacting Cisco Systems

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

• Positive Sentiment: AI demand is accelerating. Cisco reported fiscal Q4 revenue of approximately $17.3 billion, up 18% year over year, and adjusted EPS of $1.22 versus the $1.17 consensus estimate. AI infrastructure orders increased 4.5 times to $9.3 billion for fiscal 2026, while management expects approximately $7.5 billion of hyperscaler AI infrastructure revenue in fiscal 2027. Chuck Robbins Says AI Is Fueling a Networking Supercycle
• Positive Sentiment: Fiscal 2027 guidance exceeded expectations. Management forecast roughly 15% revenue growth, supported by hyperscaler spending, data-center switching and broader networking upgrades. Several firms—including UBS, Truist, Wells Fargo, KeyCorp, Morgan Stanley and Rosenblatt—raised their price targets and maintained bullish ratings, suggesting long-term upside if the AI networking cycle continues. Cisco Just Gave Investors Three Big Reasons to Be Bullish
• Neutral Sentiment: The market is demanding faster growth. Despite the earnings beat and upbeat outlook, Cisco’s shares have decreased because expectations were already elevated after a substantial rally. Investors are questioning whether the company’s AI momentum can remain strong beyond the current infrastructure buildout and whether Cisco’s premium valuation is justified. Cisco Shares Slide Despite Earnings Beat and Strong Guidance
• Negative Sentiment: Margin pressure is the primary concern. AI infrastructure growth is arriving mainly through lower-margin hardware, creating mix-related gross-margin compression and raising questions about how profitably Cisco can scale orders. HSBC downgraded CSCO to Hold from Buy and reduced its price target to $120 from $137, citing a lack of near-term catalysts even after the strong quarter. Cisco Beat on Every Line, Then Fell on What AI Costs to Ship

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.

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.

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