Cisco Attracts Significant Investment Despite Gross-Margin Concerns
Cisco Systems, Inc. (NASDAQ:CSCO) has continued to attract significant investment from institutional investors, according to its latest Form 13F filing with the SEC.
Bank of New York Mellon Corp purchased a new stake in Cisco Systems in the second quarter, acquiring approximately $4.7 billion worth of shares. The firm now holds about 0.8% of Bank of New York Mellon Corp's holdings, making it their 19th largest holding.
This is not an isolated instance of investment in Cisco Systems. Cozad Asset Management Inc., Dogwood Wealth Management LLC, Financial Insights Inc., and CPA Asset Management Group LLC have all increased their stakes in the network equipment provider during recent quarters.
Despite this positive sentiment from institutional investors, some analysts remain cautious about the company's prospects. Gross-margin pressure was a key concern after Cisco Systems reported its quarterly earnings data, with margins falling to 66.3% and expected to remain around 65%-66% in the next quarter due to higher memory costs, hardware pricing, and an unfavorable product mix.