Cisco Remains a Top Holding for Paralel Advisors Amid AI-Driven Growth
Cisco Systems, Inc., a network equipment provider, remains a significant holding for Paralel Advisors LLC. The fund reduced its holdings in Cisco by 19.4% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission.
Paralel Advisors LLC now owns 1 million shares of Cisco's stock after selling 240,000 shares during the quarter. This makes up 4.5% of Paralel Advisors LLC's portfolio, making it the company's 4th biggest holding.
Cisco Systems has a market cap of $431.94 billion and a price-to-earnings ratio of 32.81. The company reported $1.22 EPS for the quarter, topping analysts' consensus estimates of $1.17 by $0.05. Cisco's revenue increased 18% to $17.25 billion, driven in part by $4 billion in AI infrastructure orders.
Analysts remain cautious about Cisco's near-term earnings growth due to margin pressure and softer recurring revenue growth. Despite this, analysts see additional upside potential, with a consensus target price of $129.43.