SBI Securities Reduces Stake in Cisco Systems by 3.4%

SBI Securities Co. Ltd. has reduced its investment in Cisco Systems, Inc. (NASDAQ: CSCO) by 3.4% during the second quarter of 2023. According to HoldingsChannel, the firm sold 946 shares, leaving it with a total of 26,952 shares valued at approximately $1.87 million based on its latest filing with the Securities and Exchange Commission.

Other institutional investors have also adjusted their stakes in Cisco. Postrock Partners LLC increased its holdings by 4.5%, acquiring an additional 150 shares to reach a total of 3,480 shares, now valued at $241,000. Similarly, Mount Vernon Associates Inc. MD raised its position by 0.4%, owning 41,379 shares worth $2.87 million after acquiring 150 more shares. Lion Street Advisors LLC and Boyd Watterson Asset Management LLC also reported marginal increases in their investments, owning 20,694 shares valued at $1.44 million and 10,445 shares valued at $725,000, respectively.

As of now, institutional investors collectively own 73.33% of Cisco’s stock, indicating strong confidence in the company’s future prospects.

Analysts Adjust Price Targets for Cisco

Recent evaluations by analysts have resulted in revised price targets for Cisco Systems. Wells Fargo & Company upgraded its target from $75.00 to $83.00, assigning an “overweight” rating in a note published on August 14, 2023. Morgan Stanley followed suit, raising its price target from $73.00 to $77.00. Additionally, UBS Group elevated Cisco from a “neutral” rating to a “buy” rating, with a price objective now set at $88.00.

Overall, analysts have provided a positive outlook on Cisco, with one rating it as a Strong Buy, fifteen as a Buy, and nine as Hold. MarketBeat.com data reflects an average rating of “Moderate Buy” and a consensus price target of $75.50.

Cisco’s Financial Performance and Future Outlook

On November 12, 2023, Cisco Systems announced its quarterly earnings, reporting earnings per share (EPS) of $1.00, exceeding the consensus estimate of $0.98 by $0.02. The company’s revenue for the quarter reached $14.88 billion, surpassing analysts’ expectations of $14.77 billion and reflecting a year-over-year increase of 7.5%.

Cisco has set its guidance for fiscal year 2026 at an EPS range of $4.080 to $4.140, with second-quarter 2026 expectations between $1.010 and $1.030. Analysts anticipate the company will post $3.04 in earnings per share for the current year.

In addition to its earnings report, Cisco Systems declared a quarterly dividend of $0.41, scheduled for payment on January 21, 2026 to investors on record as of January 2, 2026. This dividend represents an annualized amount of $1.64, yielding 2.2%.

Insider Transactions and Company Overview

Recent insider trading activity indicates ongoing changes within Cisco. Executive Vice President Deborah L. Stahlkopf sold 2,718 shares on September 11, 2023, at an average price of $68.08, totaling approximately $185,041. Following this transaction, she retained 157,184 shares valued at around $10.7 million. Senior Vice President Maria Victoria Wong also sold 428 shares on the same day for approximately $29,211, reducing her holdings to 30,619 shares valued at about $2.09 million.

Cisco Systems, Inc. operates at the forefront of the communications and information technology sector, designing and manufacturing Internet Protocol-based networking products. Its extensive portfolio includes solutions for campus and data center switching, enterprise routing, and wireless connectivity, catering to a global market encompassing the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China.

As the company continues to evolve, the recent adjustments in investment and analyst ratings suggest a cautiously optimistic outlook for Cisco Systems in the coming quarters.