Davis Capital Management Purchases 10,458 Shares of Cisco Systems, Inc. $CSCO

Davis Capital Management raised its position in Cisco Systems, Inc. (NASDAQ:CSCO) by 38.3% in the 3rd quarter, HoldingsChannel.com reports. The fund owned 37,765 shares of the network equipment provider’s stock after acquiring an additional 10,458 shares during the quarter. Cisco Systems comprises approximately 2.5% of Davis Capital Management’s holdings, making the stock its 7th largest position. Davis Capital Management’s holdings in Cisco Systems were worth $4,065,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Cozad Asset Management Inc. grew its stake in shares of Cisco Systems by 0.3% in the first quarter. Cozad Asset Management Inc. now owns 26,203 shares of the network equipment provider’s stock worth $2,033,000 after acquiring an additional 87 shares in the last quarter. Dogwood Wealth Management LLC lifted its position in shares of Cisco Systems by 3.9% during the 2nd quarter. Dogwood Wealth Management LLC now owns 2,413 shares of the network equipment provider’s stock worth $283,000 after purchasing an additional 90 shares during the last quarter. August Group Capital Ltd increased its holdings in Cisco Systems by 2.0% in the second quarter. August Group Capital Ltd now owns 4,723 shares of the network equipment provider’s stock valued at $555,000 after buying an additional 91 shares during the last quarter. Financial Insights Inc. boosted its position in shares of Cisco Systems by 1.5% during the 1st quarter. Financial Insights Inc. now owns 6,220 shares of the network equipment provider’s stock worth $483,000 after acquiring an additional 92 shares in the last quarter. Finally, CPA Asset Management Group LLC lifted its stake in Cisco Systems by 1.8% during the second quarter. CPA Asset Management Group LLC now owns 5,335 shares of the network equipment provider’s stock worth $627,000 after purchasing an additional 93 shares during the last quarter. Hedge funds and other institutional investors own 73.33% of the company’s stock.

Insider Transactions at Cisco Systems

In related news, EVP Oliver Tuszik sold 680 shares of the firm’s stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $110.18, for a total transaction of $74,922.40. Following the sale, the executive vice president directly owned 163,337 shares in the company, valued at approximately $17,996,470.66. This trade represents a 0.41% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya Subaiya sold 312 shares of the business’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $110.18, for a total transaction of $34,376.16. Following the completion of the transaction, the executive vice president owned 127,661 shares in the company, valued at $14,065,688.98. This represents a 0.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 44,869 shares of company stock worth $5,005,620 in the last quarter. 0.01% of the stock is owned by corporate insiders.

Cisco Systems Price Performance

Shares of CSCO stock traded down $2.50 during midday trading on Thursday, reaching $114.89. 12,955,367 shares of the company traded hands, compared to its average volume of 22,499,215. The firm’s 50 day simple moving average is $112.11 and its two-hundred day simple moving average is $107.43. The firm has a market cap of $452.96 billion, a PE ratio of 34.40, a price-to-earnings-growth ratio of 2.47 and a beta of 0.99. Cisco Systems, Inc. has a 1-year low of $66.81 and a 1-year high of $130.37. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.93 and a quick ratio of 0.79.

Cisco Systems (NASDAQ:CSCO) last issued its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share for the quarter, topping analysts’ consensus estimates of $1.17 by $0.05. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The business had revenue of $17.25 billion during the quarter, compared to analysts’ expectations of $16.84 billion. During the same period last year, the company posted $0.99 EPS. The company’s revenue was up 17.6% on a year-over-year basis. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. On average, equities research analysts expect that Cisco Systems, Inc. will post 4.41 EPS for the current fiscal year.

Cisco Systems Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd will be paid a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a yield of 1.5%. The ex-dividend date is Friday, October 2nd. Cisco Systems’s payout ratio is currently 50.30%.

Wall Street Analyst Weigh In

Several brokerages have commented on CSCO. Rosenblatt Securities increased their price target on shares of Cisco Systems from $150.00 to $165.00 and gave the company a “buy” rating in a research note on Thursday, August 13th. Morgan Stanley increased their target price on shares of Cisco Systems from $130.00 to $135.00 and gave the company an “overweight” rating in a research report on Thursday, August 13th. Freedom Capital raised shares of Cisco Systems from a “hold” rating to a “strong-buy” rating in a research report on Sunday, August 16th. Wells Fargo & Company raised their price target on Cisco Systems from $130.00 to $150.00 and gave the stock an “overweight” rating in a research note on Thursday, August 13th. Finally, Wall Street Zen lowered Cisco Systems from a “buy” rating to a “hold” rating in a research report on Saturday, October 3rd. Three analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $128.52.

Key Headlines Impacting Cisco Systems

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

• Positive Sentiment: AI infrastructure demand remains a key catalyst. Cisco is reportedly seeing substantial AI infrastructure orders and has delivered its fifth consecutive earnings beat, supporting the view that networking demand could propel the company into a new growth phase. Cisco Could Be Entering a New Growth Phase
• Positive Sentiment: New agentic AI products expand Cisco’s growth story. At WebexOne 2026, Cisco introduced AI capabilities across Webex, workplace management and customer experience, including Claude-powered agents that can analyze data, create content and execute tasks using enterprise context. A Google Meet partnership for Cisco devices and RoomOS 27 are also intended to strengthen its collaboration business. Cisco Unveils New Agentic Collaboration Experiences
• Positive Sentiment: Channel and security developments add incremental support. Supermicro servers are entering Cisco’s AI Factory channel, potentially broadening the company’s AI infrastructure reach, while Cisco also added a FIPS-validated post-quantum security application. Cisco Stock and Supermicro AI Factory Channel
• Neutral Sentiment: Valuation is limiting enthusiasm. Analysts see further upside if AI orders translate into durable revenue and profit growth, but the recent rally may already reflect much of that opportunity, leaving less room for error. The Case for Waiting on Cisco Stock
• Negative Sentiment: Investors remain concerned about execution and competitive pressure. Cisco must demonstrate that AI demand can produce sustained growth without margin deterioration, while competition from networking specialists such as Arista adds uncertainty to the broader AI networking opportunity.

About Cisco Systems

Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration, observability and data center solutions. Its products and services help businesses, governments, educational institutions and other organizations connect users and devices, manage infrastructure, protect digital environments and support cloud-based operations.

Cisco’s portfolio includes routers and switches, wireless networking equipment, network management software, firewalls, identity and access tools, endpoint security products, collaboration applications and observability platforms.