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5 big investors betting on CSCO stocks. And why you should too.


Source: various photographs / Shutterstock.com

As an investor, do you prefer to follow the minnows or the whales? If you love keeping up with the flow of smart money, you’ll definitely want to check out Cisco Systems (NASDAQ:CSCO). It turns out that a number of institutions have long positions in CSCO shares. Dive into Cisco and you will no doubt understand why these financial giants claim their rights.

California-headquartered software and hardware provider Cisco was part of the wreckage of Big Tech in 2022. Cisco shares are still down 22% year-to-date, which is certainly frustrating for some stakeholders.

Still, it seems some institutional investors haven’t given up on Cisco. In fact, at least five of them held millions of Cisco shares as of September 29, 2022. You’ll probably recognize these famous names from the US banking industry, so let’s reveal them now.

5 investors are betting big on CSCO stocks

Without further ado, here are a handful of notable and high-profile Cisco shareholders, as revealed by regulatory filings.

  • Avant-garde: A huge position of 377.76 million CSCO shares, which is equivalent to 9.19% of the shares outstanding.
  • black rock (NYSE:noir): 343.86 million shares, representing 8.37% of Cisco’s outstanding shares.
  • State Street (NYSE:STT): 182.32 million CSCO shares, which corresponds to 4.44% of the outstanding shares.
  • Bank of America (NYSE:BAC): 63.77 million Cisco shares, or 1.55% of shares outstanding.
  • Morgan Stanley (NYSE:MRS): a position consisting of 52.63 million shares, or 1.28% of Cisco’s outstanding shares.

Large investors are likely drawn to Cisco’s value and dividends

There are two good news here. First, you don’t have to be a billionaire to invest like these huge banking institutions do. Second, we can guess why these big banks might find CSCO shares so attractive.

For one thing, Cisco shares are trading at a very reasonable valuation, especially for a technology company. Indeed, Cisco’s 12-month price-to-earnings (P/E) ratio of 17.94x indicates an opportunity to buy low and sell high.

Additionally, Cisco offers a generous forward annual dividend yield of 3.15%. That means investors big and small can sit back and collect quarterly dividend distributions from Cisco. Even better, you can reinvest those cash payments for maximum potential return.

You would also invest in a growing revenue business. Certainly, the big banks like the fact that Cisco grew software revenue 5% and software subscription revenue 11% year-over-year in the third quarter of 2022. The company’s total grew 6%, which isn’t bad in a tough year for tech companies.

What you can do now

Are you ready to swim with the financial whales? You’re encouraged to get started, because the sooner you establish your stake in Cisco stock, the sooner you can start receiving those big dividends.

So feel free to conduct your own due diligence and discover the many reasons to own CSCO stock now. You’ll be in good company, investing in Cisco alongside some of the biggest names in banking.

As of the date of publication, David Moadel had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

David Moadel has delivered compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga and (of course) InvestorPlace.com. He is also the Chief Analyst and Market Researcher for Portfolio Wealth Global and hosts the popular YouTube financial channel Looking at the Markets.

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Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
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