Wellington Management Group LLP Sells 9,781,118 Shares of Cisco Systems, Inc. $CSCO

Key Points

• Wellington Management Group LLP reduced its stake in Cisco Systems by 22.8%, selling 9,781,118 shares during the first quarter, leaving them with around 33.2 million shares valued at over $2 billion.
• Cisco announced a quarterly dividend of $0.41 per share to be paid on October 22nd, representing an annual yield of 2.5% and a payout ratio of 62.60%.
• The company recently exceeded earnings expectations, reporting $0.99 EPS for the quarter, along with a revenue of $14.67 billion, up 7.6% year-over-year.

Wellington Management Group LLP lowered its position in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 22.8% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 33,210,159 shares of the network equipment provider's stock after selling 9,781,118 shares during the quarter. Wellington Management Group LLP owned approximately 0.83% of Cisco Systems worth $2,049,399,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently bought and sold shares of the company. Navigoe LLC purchased a new position in Cisco Systems during the 4th quarter valued at about $26,000. Mpwm Advisory Solutions LLC bought a new stake in shares of Cisco Systems in the 4th quarter valued at about $26,000. JDM Financial Group LLC boosted its holdings in shares of Cisco Systems by 160.4% in the 4th quarter. JDM Financial Group LLC now owns 487 shares of the network equipment provider's stock valued at $29,000 after buying an additional 300 shares in the last quarter. Pandora Wealth Inc. bought a new stake in shares of Cisco Systems in the 1st quarter valued at about $31,000. Finally, Fairway Wealth LLC boosted its holdings in shares of Cisco Systems by 224.7% in the 1st quarter. Fairway Wealth LLC now owns 578 shares of the network equipment provider's stock valued at $36,000 after buying an additional 400 shares in the last quarter. Institutional investors own 73.33% of the company's stock.

Cisco Systems Stock Performance

CSCO opened at $66.20 on Monday. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.01 and a quick ratio of 0.92. The firm has a fifty day moving average price of $67.98 and a 200 day moving average price of $63.38. Cisco Systems, Inc. has a 1 year low of $47.85 and a 1 year high of $72.55. The stock has a market cap of $262.15 billion, a P/E ratio of 25.27, a P/E/G ratio of 2.83 and a beta of 0.91.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its earnings results on Wednesday, August 13th. The network equipment provider reported $0.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.98 by $0.01. Cisco Systems had a net margin of 18.45% and a return on equity of 27.02%. The firm had revenue of $14.67 billion during the quarter, compared to analysts' expectations of $14.63 billion. During the same period in the previous year, the business posted $0.87 EPS. The business's revenue was up 7.6% compared to the same quarter last year. Equities research analysts anticipate that Cisco Systems, Inc. will post 3.04 earnings per share for the current year.

Cisco Systems Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 22nd. Shareholders of record on Friday, October 3rd will be given a dividend of $0.41 per share. The ex-dividend date is Friday, October 3rd. This represents a $1.64 dividend on an annualized basis and a yield of 2.5%. Cisco Systems's dividend payout ratio is currently 62.60%.

Insider Activity at Cisco Systems

In related news, CFO Richard Scott Herren sold 15,678 shares of Cisco Systems stock in a transaction dated Tuesday, June 17th. The stock was sold at an average price of $65.52, for a total value of $1,027,222.56. Following the sale, the chief financial officer directly owned 309,543 shares in the company, valued at approximately $20,281,257.36. The trade was a 4.82% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Thimaya K. Subaiya sold 8,726 shares of Cisco Systems stock in a transaction dated Tuesday, June 17th. The stock was sold at an average price of $65.54, for a total value of $571,902.04. Following the completion of the sale, the executive vice president owned 174,669 shares in the company, valued at approximately $11,447,806.26. The trade was a 4.76% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 77,731 shares of company stock valued at $5,021,519 in the last three months. Company insiders own 0.01% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on CSCO. Wolfe Research began coverage on shares of Cisco Systems in a report on Tuesday, July 8th. They issued a "peer perform" rating on the stock. Citigroup increased their price objective on Cisco Systems from $68.00 to $71.00 and gave the company a "buy" rating in a report on Thursday, May 15th. Bank of America increased their price objective on Cisco Systems from $76.00 to $85.00 and gave the company a "buy" rating in a report on Thursday. New Street Research reiterated a "neutral" rating and set a $70.00 price objective on shares of Cisco Systems in a report on Friday, May 16th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Cisco Systems from $73.00 to $78.00 and gave the stock an "overweight" rating in a research note on Thursday, July 17th. Ten equities research analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $74.53.

About Cisco Systems

Cisco Systems, Inc designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization.

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