Vestor Capital LLC Trims Stake in Cisco Systems, Inc. $CSCO

Key Points

• Vestor Capital cut its Cisco stake by 51.2% in the first quarter, selling 9,035 shares and retaining 8,614 shares valued at approximately $668,000. Institutional investors still own 73.33% of Cisco’s outstanding stock.
• Analyst sentiment remains positive overall, with a consensus rating of “Moderate Buy” and an average price target of $123.14, although Wall Street Zen downgraded the shares to “hold.”
• Cisco’s latest quarter beat expectations, with revenue rising 12% year over year to $15.84 billion and EPS of $1.06; however, insider selling and concerns that AI-related gains are already priced into the stock remain potential risks.

Vestor Capital LLC cut its stake in shares of Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 51.2% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 8,614 shares of the network equipment provider's stock after selling 9,035 shares during the period. Vestor Capital LLC's holdings in Cisco Systems were worth $668,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also bought and sold shares of CSCO. Intesa Sanpaolo Wealth Management purchased a new position in Cisco Systems during the fourth quarter valued at approximately $25,000. MidAtlantic Capital Management Inc. purchased a new stake in shares of Cisco Systems in the fourth quarter worth $25,000. Networth Advisors LLC raised its position 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 valued at $26,000 after purchasing an additional 246 shares during the period. Manning & Napier Advisors LLC lifted its stake in shares of Cisco Systems by 137.0% during the 1st quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider's stock valued at $27,000 after buying an additional 200 shares in the last quarter. Finally, Financial Life Planners bought a new position in Cisco Systems in the 1st quarter worth $27,000. Hedge funds and other institutional investors own 73.33% of the company's stock.

Analyst Ratings Changes

A number of research firms have commented on CSCO. Wall Street Zen cut Cisco Systems from a "buy" rating to a "hold" rating in a report on Tuesday. Bank of America boosted their price target on Cisco Systems from $135.00 to $150.00 and gave the stock a "buy" rating in a report on Monday, June 8th. UBS Group increased their price objective on shares of Cisco Systems from $95.00 to $132.00 and gave the company a "buy" rating in a report on Thursday, May 14th. Zacks Research raised shares of Cisco Systems from a "hold" rating to a "strong-buy" rating in a report on Tuesday, June 30th. Finally, Citic Securities upped their target price on shares of Cisco Systems from $90.00 to $130.00 in a research report on Friday, May 15th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $123.14.

Trending Headlines about Cisco Systems

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

• Positive Sentiment: AI-related networking orders have strengthened Cisco’s outlook, prompting a modest increase in estimates of the stock’s fair value. The demand suggests Cisco is gaining from data-center and artificial-intelligence infrastructure spending. Cisco Stock Fair Value Edges Higher After AI Networking Order Strength
• Positive Sentiment: New alliances focused on AI and quantum-safe security could broaden Cisco’s investment story beyond traditional networking, supporting longer-term demand for its security and infrastructure products. Cisco AI and Quantum-Safe Security Alliances
• Neutral Sentiment: Cisco pulled back after six consecutive sessions of gains, a move characterized as profit-taking rather than a clear deterioration in the company’s fundamentals. Cisco Slips After Six Straight Sessions of Gains
• Neutral Sentiment: Palantir’s upcoming earnings are renewing debate about whether exceptionally high valuations can be justified by AI growth. Although the story concerns PLTR, the read-through may influence sentiment toward highly valued AI beneficiaries such as Cisco. Palantir’s Earnings Setup Puts Its AI Growth Story Back on Trial Again
• Negative Sentiment: Analysts argue that much of Cisco’s AI upside may already be reflected in the share price ahead of its quarterly report, increasing the risk of disappointment even if results are solid. Cisco Q4 Preview
• Negative Sentiment: Valuation remains a concern: Cisco’s strong AI-related rally has raised questions about whether expected growth is sufficient to support the current multiple, potentially limiting further upside. Cisco Valuation Concerns
• Negative Sentiment: Concerns that the AI capital-spending boom resembles the late-1990s technology bubble create a risk for Cisco because its networking growth is tied to continued data-center investment. A slowdown or spending reset could pressure orders and the stock’s valuation. AI Capital-Expenditure Boom Concerns

Insider Activity at Cisco Systems

In related news, CEO Charles Robbins sold 21,400 shares of the firm's stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $120.03, for a total value of $2,568,642.00. Following the completion of the sale, the chief executive officer directly owned 637,085 shares in the company, valued at $76,469,312.55. This trade represents a 3.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Deborah L. Stahlkopf sold 6,586 shares of Cisco Systems stock in a transaction on Friday, May 15th. The stock was sold at an average price of $117.31, for a total transaction of $772,603.66. Following the transaction, the executive vice president directly owned 177,223 shares of the company's stock, valued at $20,790,030.13. The trade was a 3.58% 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 have sold a total of 47,650 shares of company stock worth $5,668,823 in the last ninety days. Corporate insiders own 0.01% of the company's stock.

Cisco Systems Trading Up 1.0%

Shares of CSCO opened at $113.56 on Friday. The stock has a market capitalization of $447.59 billion, a PE ratio of 36.87, a P/E/G ratio of 2.87 and a beta of 1.02. The company's fifty day moving average is $117.75 and its 200 day moving average is $95.81. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.81 and a current ratio of 0.92. Cisco Systems, Inc. has a fifty-two week low of $65.75 and a fifty-two week high of $130.37.

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

Cisco Systems Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 22nd. Stockholders of record on Monday, July 6th were given a dividend of $0.42 per share. The ex-dividend date of this dividend was Monday, July 6th. This represents a $1.68 annualized dividend and a dividend yield of 1.5%. Cisco Systems's payout ratio is currently 54.55%.

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.

Want to see what other hedge funds are holding CSCO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cisco Systems, Inc. (NASDAQ:CSCO - Free Report).

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.