Trifecta Capital Advisors LLC Acquires Shares of 11,535 Cisco Systems, Inc. $CSCO

Key Points

• Trifecta Capital Advisors acquired 11,535 Cisco shares in the second quarter, valued at approximately $1.36 million. Institutional investors collectively own 73.33% of Cisco’s stock.
• Cisco reported strong fiscal fourth-quarter results, with revenue up 17.6% year over year to $17.25 billion and adjusted EPS of $1.22, beating estimates. Management expects about 15% revenue growth in fiscal 2027, driven by accelerating AI infrastructure demand.
• Despite the upbeat outlook, Cisco shares have faced pressure as investors weigh elevated expectations, lower-margin AI hardware sales and potential gross-margin compression. The company declared a quarterly dividend of $0.42 per share, yielding approximately 1.5%.

Trifecta Capital Advisors LLC bought a new position in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The firm bought 11,535 shares of the network equipment provider's stock, valued at approximately $1,355,000.

Several other hedge funds also recently added to or reduced their stakes in CSCO. Intesa Sanpaolo Wealth Management bought a new stake in Cisco Systems in the fourth quarter worth about $25,000. MidAtlantic Capital Management Inc. purchased a new stake in shares of Cisco Systems in the fourth quarter worth approximately $25,000. Networth Advisors LLC lifted its stake in shares of Cisco Systems by 276.4% during the 1st quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider's stock worth $26,000 after acquiring an additional 246 shares during the last quarter. Manning & Napier Advisors LLC grew its position in Cisco Systems by 137.0% in the 1st quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider's stock valued at $27,000 after acquiring an additional 200 shares during the last quarter. Finally, Financial Life Planners purchased a new stake in Cisco Systems in the first quarter worth $27,000. 73.33% of the stock is currently owned by institutional investors.

Cisco Systems News Roundup

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

Cisco Systems Price Performance

NASDAQ CSCO opened at $111.68 on Friday. The company has a market cap of $440.18 billion, a PE ratio of 33.44, a P/E/G ratio of 2.56 and a beta of 1.02. The firm's 50 day moving average price is $117.03 and its 200-day moving average price is $99.09. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.81 and a current ratio of 0.93. Cisco Systems, Inc. has a 52-week low of $65.75 and a 52-week high of $130.37.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, topping analysts' consensus estimates of $1.17 by $0.05. The company had revenue of $17.25 billion during the quarter, compared to the consensus estimate of $16.84 billion. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. Cisco Systems's revenue for the quarter was up 17.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.99 earnings per share. 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. Sell-side analysts forecast that Cisco Systems, Inc. will post 4 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 21st. Stockholders of record on Friday, October 2nd will be given a $0.42 dividend. This represents a $1.68 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, October 2nd. Cisco Systems's payout ratio is presently 54.55%.

Insider Buying and Selling

In related news, EVP Oliver Tuszik sold 2,607 shares of the firm's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $121.12, for a total transaction of $315,759.84. Following the sale, the executive vice president owned 172,727 shares of the company's stock, valued at $20,920,694.24. This trade represents a 1.49% decrease in their ownership of the stock. The sale 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, EVP Thimaya K. Subaiya sold 7,127 shares of the business'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 transaction, the executive vice president owned 140,857 shares of the company's stock, valued at $16,890,162.87. This represents a 4.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 31,134 shares of company stock worth $3,739,000 in the last three months. 0.01% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

CSCO has been the subject of a number of recent analyst reports. Barclays boosted their target price on shares of Cisco Systems from $121.00 to $123.00 and gave the company an "equal weight" rating in a research note on Thursday. Evercore lifted their price objective on shares of Cisco Systems from $110.00 to $150.00 and gave the company an "outperform" rating in a report on Thursday, May 14th. Wells Fargo & Company boosted their price objective on shares of Cisco Systems from $130.00 to $150.00 and gave the company an "overweight" rating in a research report on Thursday. Citigroup raised their target price on shares of Cisco Systems from $90.00 to $112.00 and gave the stock a "buy" rating in a research report on Thursday, May 14th. Finally, New Street Research boosted their price target on Cisco Systems from $82.00 to $122.00 and gave the company a "neutral" rating in a report on Thursday, May 14th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat.com, Cisco Systems currently has a consensus rating of "Moderate Buy" and an average price target of $129.43.

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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