5 Tech Stocks to Buy According to Billionaire David Harding

2. Cisco Systems, Inc. (NASDAQ:CSCO)

Winton Capital Management’s Stake Value: $10,394,000

Percentage of Winton Capital Management’s 13F Portfolio: 0.58%

Number of Hedge Fund Holders: 63

Winton Capital Management increased its position in Cisco Systems, Inc. (NASDAQ:CSCO) by 18% in Q3 2021.

On November 17, Cisco Systems, Inc. (NASDAQ:CSCO) posted its Q3 results, announcing earnings per share of $0.82, exceeding estimates by $0.02. The $12.90 billion revenue missed estimates by $81.63 million. 

Citi analyst Jim Suva raised the price target on Cisco Systems, Inc. (NASDAQ:CSCO) on December 22 to $65 from $55 and kept a Neutral rating on the shares. The analyst stated that he was less confident about Cisco Systems, Inc. (NASDAQ:CSCO)’s ability to gain market share and return to prior growth rates with the company’s sales “on the decline.”

Of the 63 hedge funds that were long Cisco Systems, Inc. (NASDAQ:CSCO) as of September 2021, billionaire Ken Fisher’s Fisher Asset Management is the largest company stakeholder, holding 22.8 million shares worth $1.24 billion.

Here is what ClearBridge Investments has to say about Cisco Systems, Inc. (NASDAQ:CSCO) in its Q1 2021 investor letter:

“Also in IT, we added Cisco Systems, which provides IT and networking services in the form of network security, software development and cloud computing. Cisco continues to derive over 50% of its sales from on-premise deployments of its products of enterprise and small and midsize customers, while recurring revenues from software are becoming a larger part of the mix. Return-to-office enterprise spending should offer upside to its core campus business. Cisco was an early technology leader in sustainability over two decades ago, through its Internet-connecting capabilities which supported live concerts in partnership with the United Nations Development Program to raise awareness and funds to fight poverty. Cisco has very strong environmental standards (including driving lower energy consumption in IT departments through new product innovations and a longstanding goal to reduce emissions and reliance on non-renewable energy sources). Its data privacy and supply chain management policies are best in class.”