Primecap Management Co. CA Trims Stock Holdings in Cisco Systems, Inc. $CSCO

Primecap Management Co. CA lowered its holdings in shares of Cisco Systems, Inc. (NASDAQ:CSCO) by 4.6% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 5,248,560 shares of the network equipment provider’s stock after selling 250,800 shares during the period. Primecap Management Co. CA’s holdings in Cisco Systems were worth $359,106,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Benchmark Financial Wealth Advisors LLC grew its holdings in shares of Cisco Systems by 1.4% in the 3rd quarter. Benchmark Financial Wealth Advisors LLC now owns 10,449 shares of the network equipment provider’s stock worth $715,000 after acquiring an additional 142 shares during the period. Yoder Wealth Management Inc. increased its position in Cisco Systems by 3.8% during the 3rd quarter. Yoder Wealth Management Inc. now owns 3,945 shares of the network equipment provider’s stock worth $270,000 after purchasing an additional 143 shares in the last quarter. Wynn Capital LLC raised its position in shares of Cisco Systems by 0.3% in the third quarter. Wynn Capital LLC now owns 48,456 shares of the network equipment provider’s stock valued at $3,315,000 after buying an additional 150 shares during the last quarter. Old North State Trust LLC lifted its stake in shares of Cisco Systems by 0.6% during the 2nd quarter. Old North State Trust LLC now owns 24,534 shares of the network equipment provider’s stock worth $1,702,000 after purchasing an additional 151 shares during the period. Finally, Cordatus Wealth Management LLC boosted its stake in Cisco Systems by 0.4% in the 2nd quarter. Cordatus Wealth Management LLC now owns 36,370 shares of the network equipment provider’s stock worth $2,523,000 after buying an additional 152 shares during the last quarter. 73.33% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Cisco Systems

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

• Positive Sentiment: Networking revenue acceleration — Cisco reported networking revenue growth (~21% year-over-year in fiscal Q2) driven by AI and campus demand, supporting upside to future top-line and margins. Read More.
• Positive Sentiment: Analyst upgrades and bullish price targets — Multiple firms have raised targets or maintained buy/strong-buy views (Zacks rank upgrade and several banks raising targets), supporting demand for CSCO shares. Read More.
• Positive Sentiment: Dividend increase — Cisco raised its quarterly dividend to $0.42 (annualized $1.68), boosting yield and appealing to income-focused investors. Read More.
• Positive Sentiment: Talent and go‑to‑market partnerships — Cisco Networking Academy’s global partnership with Indeed (and other regional AI/security initiatives) strengthens hiring/training and helps commercial adoption of Cisco’s AI/security stack. Read More.
• Neutral Sentiment: Market performance context — Cisco has outpaced the Dow over the past year, keeping it in investors’ rotation but analysts remain cautiously optimistic on sustainability. Read More.
• Neutral Sentiment: Security thought leadership — Cisco distributed Splunk’s CISO report on AI risk/governance, which supports positioning in security but is not an immediate earnings driver. Read More.
• Neutral Sentiment: Competitive landscape — Analyst pieces comparing Cisco vs. Ciena highlight strong optical/AI demand across peers; competition could influence share gains but Cisco retains a large AI order pipeline. Read More.
• Negative Sentiment: Insider selling — SVP Maria Victoria Wong sold 2,179 shares (disclosed Feb. 24), which can create short-term perception pressure despite the small size relative to outstanding shares. Read More.
• Negative Sentiment: Analyst downgrade on margins — Erste Group cut CSCO to Hold citing gross-margin concerns; if margins disappoint, multiple expansion could be capped. Read More.

Insider Buying and Selling

In related news, Director Kristina M. Johnson sold 13,481 shares of the stock in a transaction on Thursday, December 18th. The stock was sold at an average price of $77.13, for a total value of $1,039,789.53. Following the completion of the transaction, the director owned 61,630 shares in the company, valued at $4,753,521.90. This trade represents a 17.95% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Charles Robbins sold 19,545 shares of the business’s stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $76.00, for a total value of $1,485,420.00. Following the sale, the chief executive officer owned 671,095 shares in the company, valued at approximately $51,003,220. The trade was a 2.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 75,677 shares of company stock valued at $5,811,211 in the last three months. Insiders own 0.01% of the company’s stock.

Cisco Systems Stock Performance

CSCO stock opened at $79.12 on Thursday. The company has a 50-day simple moving average of $77.78 and a 200 day simple moving average of $73.62. The company has a quick ratio of 0.85, a current ratio of 0.96 and a debt-to-equity ratio of 0.45. The company has a market capitalization of $312.52 billion, a P/E ratio of 27.76, a PEG ratio of 2.95 and a beta of 0.87. Cisco Systems, Inc. has a fifty-two week low of $52.11 and a fifty-two week high of $88.18.

Cisco Systems (NASDAQ:CSCO) last announced its earnings results on Wednesday, February 11th. The network equipment provider reported $1.04 EPS for the quarter, topping the consensus estimate of $1.02 by $0.02. Cisco Systems had a return on equity of 27.88% and a net margin of 19.22%.The firm had revenue of $15.35 billion for the quarter, compared to analysts’ expectations of $15.11 billion. During the same quarter in the previous year, the company earned $0.94 earnings per share. The firm’s quarterly revenue was up 9.7% compared to the same quarter last year. Sell-side analysts predict that Cisco Systems, Inc. will post 3.04 earnings per share for the current fiscal year.

Cisco Systems Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 22nd. Investors of record on Thursday, April 2nd will be issued a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date is Thursday, April 2nd. This is an increase from Cisco Systems’s previous quarterly dividend of $0.41. Cisco Systems’s payout ratio is presently 57.54%.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the stock. Rosenblatt Securities reiterated a “buy” rating and issued a $100.00 price target on shares of Cisco Systems in a report on Thursday, February 12th. Citigroup increased their price objective on shares of Cisco Systems from $85.00 to $90.00 and gave the company a “buy” rating in a research report on Thursday, February 12th. BNP Paribas Exane boosted their price target on Cisco Systems from $86.00 to $87.00 and gave the stock an “outperform” rating in a research note on Thursday, February 12th. Zacks Research upgraded shares of Cisco Systems from a “hold” rating to a “strong-buy” rating in a research note on Monday, January 26th. Finally, JPMorgan Chase & Co. increased their target price on Cisco Systems from $90.00 to $95.00 and gave the stock an “overweight” rating in a report on Monday, February 9th. Three research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $89.55.

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.