Cisco Systems, Inc. (NASDAQ:CSCO) has seen a giant increase in one indicator we track. Here’s what it is.
At the moment, there are dozens of metrics market participants can use to analyze the equity markets. A duo of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best money managers can outclass their index-focused peers by a superb amount (see just how much).
Equally as key, positive insider trading activity is another way to look at the financial markets. There are many reasons for an insider to downsize shares of his or her company, but just one, very simple reason why they would behave bullishly. Many empirical studies have demonstrated the impressive potential of this tactic if shareholders understand where to look (learn more here).
What’s more, it’s important to discuss the recent info about Cisco Systems, Inc. (NASDAQ:CSCO).
How are hedge funds trading Cisco Systems, Inc. (NASDAQ:CSCO)?
At Q2’s end, a total of 76 of the hedge funds we track were bullish in this stock, a change of 25% from one quarter earlier. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their holdings significantly.
When using filings from the hedgies we track, Donald Yacktman’s Yacktman Asset Management had the biggest position in Cisco Systems, Inc. (NASDAQ:CSCO), worth close to $1.2858 billion, comprising 6.1% of its total 13F portfolio. On Yacktman Asset Management’s heels is Matt McLennan of First Eagle Investment Management, with a $1.0475 billion position; the fund has 3.2% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include Ken Fisher’s Fisher Asset Management, Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC and Kerr Neilson’s Platinum Asset Management.
As one would understandably expect, specific money managers were leading the bulls’ herd. Yacktman Asset Management, managed by Donald Yacktman, initiated the largest position in Cisco Systems, Inc. (NASDAQ:CSCO). Yacktman Asset Management had 1.2858 billion invested in the company at the end of the quarter. Matt McLennan’s First Eagle Investment Management also initiated a $1.0475 billion position during the quarter. The other funds with new positions in the stock are Ken Fisher’s Fisher Asset Management, Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC, and Kerr Neilson’s Platinum Asset Management.
What do corporate executives and insiders think about Cisco Systems, Inc. (NASDAQ:CSCO)?
Insider buying made by high-level executives is at its handiest when the company we’re looking at has experienced transactions within the past six months. Over the last 180-day time period, Cisco Systems, Inc. (NASDAQ:CSCO) has experienced zero unique insiders purchasing, and 14 insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Cisco Systems, Inc. (NASDAQ:CSCO). These stocks are Finisar Corporation (NASDAQ:FNSR), Riverbed Technology, Inc. (NASDAQ:RVBD), Aruba Networks, Inc. (NASDAQ:ARUN), Palo Alto Networks Inc (NYSE:PANW), and Juniper Networks, Inc. (NYSE:JNPR). This group of stocks are in the networking & communication devices industry and their market caps are similar to CSCO’s market cap.