Vanguard Group Inc. Boosts Stock Holdings in Cisco Systems, Inc. $CSCO

Key Points

• Vanguard increased its stake in Cisco by 1.0% in Q4, adding 4,049,893 shares to hold 398,943,293 shares — about 10.10% of the company valued at roughly $30.73 billion, making CSCO its 27th-largest holding.
• Cisco unveiled a working prototype of a Universal Quantum Switch (proof-of-concept showed under 4% fidelity degradation), and coupled with a recent revenue/EPS beat and a raised quarterly dividend to $0.42, this has fueled bullish analyst sentiment about its AI/quantum growth potential.

Vanguard Group Inc. grew its position in shares of Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 1.0% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 398,943,293 shares of the network equipment provider's stock after acquiring an additional 4,049,893 shares during the quarter. Cisco Systems accounts for approximately 0.4% of Vanguard Group Inc.'s portfolio, making the stock its 27th largest holding. Vanguard Group Inc. owned about 10.10% of Cisco Systems worth $30,730,602,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently bought and sold shares of the company. Arrowstreet Capital Limited Partnership boosted its position in Cisco Systems by 110.2% in the third quarter. Arrowstreet Capital Limited Partnership now owns 18,406,442 shares of the network equipment provider's stock worth $1,259,369,000 after purchasing an additional 9,648,265 shares during the last quarter. Wellington Management Group LLP boosted its position in Cisco Systems by 19.5% in the third quarter. Wellington Management Group LLP now owns 33,748,414 shares of the network equipment provider's stock worth $2,309,066,000 after purchasing an additional 5,498,375 shares during the last quarter. Invesco Ltd. boosted its position in Cisco Systems by 10.5% in the third quarter. Invesco Ltd. now owns 53,612,720 shares of the network equipment provider's stock worth $3,668,182,000 after purchasing an additional 5,081,469 shares during the last quarter. Danske Bank A S purchased a new position in Cisco Systems in the third quarter valued at approximately $233,956,000. Finally, Legal & General Group Plc grew its holdings in Cisco Systems by 7.2% during the third quarter. Legal & General Group Plc now owns 37,674,954 shares of the network equipment provider's stock valued at $2,577,720,000 after purchasing an additional 2,535,716 shares during the period. 73.33% of the stock is owned by hedge funds and other institutional investors.

Cisco Systems News Roundup

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

• Positive Sentiment: Cisco unveiled a working prototype of a "Universal Quantum Switch" that can route quantum information between different types of quantum systems — a tangible step toward quantum networking that expands Cisco's addressable market beyond traditional routers and switches. Cisco shows switch that can connect quantum computers of different kinds
• Positive Sentiment: The company’s Universal Quantum Switch press release reported proof-of-concept results (under 4% fidelity degradation) and stressed interoperability over standard telecom fiber — a credibility boost for long-term revenue potential in an emerging market. Cisco Introduces Universal Quantum Switch, Advancing the Path to a Quantum Network
• Positive Sentiment: Analysts and trade pieces are positioning Cisco as a beneficiary of the AI-quantum convergence and as a "pick-and-shovel" supplier to AI infrastructure builds — sentiment that supports multiple-year upside if Cisco converts research into commercial products and services. AI Meets Quantum: Best Pick-and-Shovel Stocks for a Multi-Year Shift
• Positive Sentiment: Market commentary ranks Cisco among AI/infra names with multi‑trillion-dollar potential over time, reflecting investor expectations that its transformation into higher‑margin software/subscriptions and AI hardware could materially re-rate valuation. Cisco Systems (CSCO): Can It Hit Trillion Dollar Milestone?
• Neutral Sentiment: Cisco added Qmulos continuous‑compliance products to its Global Price List, easing procurement for joint customers — a modest commercial win that supports software and services momentum but is not material on its own. Qmulos Now Available on Cisco Global Price List (GPL)
• Neutral Sentiment: Reported short‑interest data for April appears inconsistent (shows 0 shares / NaN change) and is not indicating a meaningful short squeeze or cover signal at this time.
• Negative Sentiment: Despite the upbeat product news, Cisco shares pulled back on April 23 (a larger decline than the market), showing that investors still react to near‑term macro/earnings/rotation risk even as the company invests in new growth areas. Cisco Systems (CSCO) Registers a Bigger Fall Than the Market

Cisco Systems Price Performance

Cisco Systems stock opened at $89.01 on Friday. Cisco Systems, Inc. has a one year low of $56.07 and a one year high of $90.45. The business has a fifty day moving average price of $80.55 and a 200-day moving average price of $77.44. The company has a debt-to-equity ratio of 0.45, a current ratio of 0.96 and a quick ratio of 0.85. The firm has a market capitalization of $351.58 billion, a P/E ratio of 31.23, a PEG ratio of 3.34 and a beta of 0.83.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its quarterly earnings data on Wednesday, February 11th. The network equipment provider reported $1.04 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.02 by $0.02. The business had revenue of $15.35 billion for the quarter, compared to analysts' expectations of $15.11 billion. Cisco Systems had a return on equity of 27.88% and a net margin of 19.22%.The firm's quarterly revenue was up 9.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.94 EPS. As a group, equities research analysts forecast that Cisco Systems, Inc. will post 3.4 EPS for the current year.

Cisco Systems Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 22nd. Investors of record on Thursday, April 2nd were issued a dividend of $0.42 per share. This is a positive change from Cisco Systems's previous quarterly dividend of $0.41. The ex-dividend date of this dividend was Thursday, April 2nd. This represents a $1.68 dividend on an annualized basis and a yield of 1.9%. Cisco Systems's payout ratio is currently 58.95%.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on CSCO. Weiss Ratings reissued a "buy (b)" rating on shares of Cisco Systems in a report on Tuesday, January 27th. Truist Financial began coverage on Cisco Systems in a research report on Tuesday, March 31st. They set a "buy" rating and a $94.00 price target on the stock. DZ Bank raised Cisco Systems to a "strong-buy" rating in a research report on Friday, February 13th. UBS Group upped their price target on Cisco Systems from $90.00 to $95.00 and gave the company a "buy" rating in a research report on Thursday, February 12th. Finally, HSBC upped their price target on Cisco Systems from $74.00 to $77.00 and gave the company a "hold" rating in a research report on Friday, February 13th. Three investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and eight have issued a Hold rating to the company's stock. According to data from MarketBeat, Cisco Systems currently has an average rating of "Moderate Buy" and an average price target of $89.81.

Insider Buying and Selling

In related news, EVP Deborah L. Stahlkopf sold 7,981 shares of the stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $79.50, for a total value of $634,489.50. Following the sale, the executive vice president owned 187,097 shares in the company, valued at approximately $14,874,211.50. This trade represents a 4.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, SVP Maria Victoria Wong sold 551 shares of the stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $77.54, for a total value of $42,724.54. Following the completion of the sale, the senior vice president owned 27,957 shares in the company, valued at $2,167,785.78. This trade represents a 1.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 46,431 shares of company stock valued at $3,574,820 in the last ninety days. 0.01% of the stock is owned by insiders.

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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