Form 4: Cisco Executive Sells Shares Under Pre-Arranged 10b5-1 Plan

Cisco's EVP & Chief Customer and Partner Officer, Jeffery S. Sharritts, sold 12,989 shares of common stock at an average price of $48.6652 per share, under a pre-arranged 10b5-1 trading plan.

Summary

• Jeffery S. Sharritts, an EVP & Chief Customer and Partner Officer at Cisco Systems, Inc., sold 12,989 shares of Cisco common stock on February 16, 2024.
• The sale was executed under a pre-arranged Rule 10b5-1 trading plan adopted on June 13, 2023.
• The shares were sold at a weighted average price of $48.6652, with individual transaction prices ranging from $48.40 to $49.07.
• Following the transaction, Mr. Sharritts beneficially owns 250,134 shares of Cisco common stock, which includes 6,699 dividend equivalents accrued on unvested restricted stock units.

Sentiment

Score: 5

Explanation: The document reflects a routine transaction under a pre-arranged trading plan, with no indication of positive or negative sentiment.

Risks

• Executive stock sales can sometimes be perceived negatively by the market, although this sale was pre-planned under a 10b5-1 plan.

Industry Context

Executive stock sales are a common occurrence, especially under pre-arranged trading plans like 10b5-1, and are generally not indicative of company performance or outlook.

Comparison to Industry Standards

• Sales by executives under 10b5-1 plans are a common practice across the technology industry, including companies like Microsoft (MSFT), Apple (AAPL), and Oracle (ORCL).
• These plans allow executives to diversify their holdings while avoiding accusations of insider trading.
• The volume of shares sold by Mr. Sharritts is not unusual for an executive of his level at a company the size of Cisco.

Stakeholder Impact

• The sale is unlikely to have a significant impact on stakeholders, as it was a pre-planned transaction.

Key Dates

Keywords

Cisco, Jeffery S. Sharritts, stock sale, Rule 10b5-1, executive, insider trading, CSCO