First Interstate Bank has decreased its investment in Cisco Systems, Inc. by 0.2% during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission, the institutional investor now holds 142,358 shares of Cisco, having sold 278 shares in this period. This adjustment means that Cisco Systems now represents approximately 0.6% of First Interstate Bank’s total investment portfolio, making it the bank’s 27th largest holding. As of the end of the last reporting period, these holdings were valued at $9,877,000.
Several other major investors have also adjusted their positions in Cisco Systems. Notably, Kingstone Capital Partners Texas LLC acquired a new stake in Cisco, valued at approximately $904,542,000. Meanwhile, Goldman Sachs Group Inc. increased its stake by 37.4% in the first quarter, now owning 46,973,293 shares worth $2,898,722,000 after acquiring an additional 12,775,066 shares. Other significant movements include Nuveen LLC, which established a new stake worth $750,495,000, and Pacer Advisors Inc., which boosted its stake by an astonishing 1,144.2%, now holding 8,120,886 shares valued at $501,140,000.
As it stands, institutional investors and hedge funds own approximately 73.33% of Cisco’s stock.
Analyst Ratings and Market Performance
Recent commentary from various brokerages has reflected a positive outlook on Cisco Systems. KeyCorp initiated coverage with an “overweight” rating and a target price of $77.00. Conversely, Wall Street Zen downgraded the stock from “strong-buy” to “buy.” Furthermore, UBS Group raised its target price from $70.00 to $74.00 while maintaining a “neutral” rating. In addition, JPMorgan Chase & Co. increased its target price from $73.00 to $78.00 and assigned an “overweight” rating. Overall, the stock has garnered one “Strong Buy,” thirteen “Buy,” and ten “Hold” ratings, leading to a consensus rating of “Moderate Buy” with a target price of $74.72.
On the trading front, shares of Cisco Systems opened at $70.13 on Monday, with a market capitalization of approximately $277.24 billion. The company’s price-to-earnings (P/E) ratio stands at 26.77, with a P/E/G ratio of 2.95 and a beta of 0.97. Over the past year, Cisco’s stock has experienced a low of $52.11 and a high of $72.55.
Cisco recently reported its quarterly earnings on August 13, 2023, revealing earnings per share (EPS) of $0.99, exceeding analyst expectations of $0.98. The company’s revenue for this quarter reached $14.67 billion, surpassing estimates of $14.63 billion. Cisco Systems enjoyed a net margin of 18.45% and a return on equity of 27.06%, with revenue increasing by 7.6% year-over-year. The firm has set guidance for Q1 2026 at EPS between $0.970 and $0.990, with FY 2026 guidance at $4.000 to $4.060.
Dividend Announcement and Insider Activity
In other news, Cisco Systems has declared a quarterly dividend of $0.41 per share, scheduled for payment on October 22, 2023. Shareholders on record as of October 3, 2023 will receive this dividend, representing an annualized dividend of $1.64 and a yield of 2.3%. The payout ratio currently stands at 62.60%.
Insider trading activity has also been notable. On August 15, 2023, insider Jeetendra I. Patel sold 9,061 shares at an average price of $66.60, totaling approximately $603,462.60. Following this transaction, Patel retains 237,405 shares valued at around $15,811,173. Additionally, CEO Charles Robbins sold 30,557 shares on the same day for about $2,036,012.91, reducing his ownership by 4.56% to 639,000 shares valued at $42,576,570. Over the past 90 days, insiders have sold a total of 82,965 shares valued at $5,559,996, with insiders holding just 0.01% of the stock.
Company Overview
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol-based networking products alongside various communications and information technology solutions. Its operations extend across the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company’s product portfolio includes campus and data center switching, enterprise routing, wireless products, and computing solutions, all aimed at providing secure and reliable connectivity.
This update underscores the dynamic nature of investment in Cisco Systems and reflects broader trends in institutional interest, market performance, and insider trading.
