First Interstate Bank has reduced its stake in Cisco Systems, Inc. (NASDAQ: CSCO) by 0.2% during the second quarter, as reported in its latest filing with the Securities and Exchange Commission. The bank now holds 142,358 shares of the networking equipment provider after selling 278 shares during this period. This adjustment means that Cisco Systems comprises approximately 0.6% of First Interstate Bank’s investment portfolio, ranking it as the bank’s 27th largest holding, valued at approximately $9,877,000.
Several institutional investors have also made significant changes to their positions in Cisco Systems. Kingstone Capital Partners Texas LLC established a new position during the second quarter, valued at around $904,542,000. Notably, Goldman Sachs Group Inc. increased its stake by 37.4% in the first quarter, acquiring an additional 12,775,066 shares, bringing its total to 46,973,293 shares worth approximately $2,898,722,000. Other notable changes include Nuveen LLC, which acquired a new stake worth $750,495,000, and Pacer Advisors Inc., which boosted its stake by an impressive 1,144.2%.
Market Overview and Analyst Ratings
Currently, institutional investors and hedge funds own 73.33% of Cisco Systems’ stock. Recent commentary from brokerages reflects varying perspectives on the company. KeyCorp initiated coverage with an “overweight” rating and a target price of $77.00. Conversely, Wall Street Zen downgraded Cisco from a “strong-buy” to a “buy” rating. UBS Group raised its target price from $70.00 to $74.00, maintaining a “neutral” rating.
Overall, Cisco Systems has received mixed ratings from analysts: one has given it a Strong Buy rating, thirteen have assigned a Buy rating, and ten have rated it as Hold. According to MarketBeat, the stock currently holds a consensus rating of “Moderate Buy” with a target price of $74.72.
Shares of Cisco Systems opened at $70.13 recently, contributing to a market capitalization of $277.24 billion. The company has a price-to-earnings (P/E) ratio of 26.77 and a P/E growth (P/E/G) ratio of 2.95. Cisco’s stock has experienced fluctuations, with a 52-week low of $52.11 and a high of $72.55.
Recent Earnings and Dividends
Cisco Systems announced its quarterly earnings on August 13, 2023, reporting earnings per share (EPS) of $0.99, surpassing the consensus estimate of $0.98. The company generated revenue of $14.67 billion, exceeding analyst expectations of $14.63 billion. This represents a year-over-year revenue increase of 7.6%. The firm has projected EPS guidance for Q1 2026 in the range of 0.970-0.990 and annual guidance for FY 2026 at 4.000-4.060.
Additionally, Cisco Systems declared a quarterly dividend of $0.41 per share, scheduled for payment on October 22, 2023. Shareholders of record on October 3, 2023, will receive this dividend, which represents an annualized total of $1.64 and a yield of 2.3%. The company maintains a payout ratio of 62.60%.
In insider trading news, Jeetendra I. Patel, an insider, sold 9,061 shares at an average price of $66.60 on August 15, 2023, resulting in total proceeds of approximately $603,462.60. Following this transaction, Patel owns 237,405 shares valued at around $15,811,173. Similarly, CEO Charles Robbins sold 30,557 shares at an average price of $66.63, totaling around $2,036,012.91, thereby reducing his ownership stake to 639,000 shares worth approximately $42,576,570.
The insider activity indicates a total of 82,965 shares sold by insiders over the last 90 days, valued at approximately $5,559,996. Presently, insiders own a mere 0.01% of the company’s stock.
Cisco Systems, Inc. remains a key player in the Internet Protocol-based networking and communications technology sector, with a diverse portfolio that includes products for campus switching, data center switching, enterprise routing, and wireless access. With a strong market position and ongoing updates in its investment landscape, Cisco’s future developments will continue to attract attention from investors and analysts alike.
