Arista Networks (NYSE:ANET) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.

According to Zacks, “Arista is a dominant name in the data center networking market. Shares of the company have outperformed the industry over the past one year. The company’s robust product portfolio remains a key catalyst. Arista is benefiting from strong demand for 100-gigabit routing and switching products, particularly from cloud titans. Management stated that FlexRoute license (almost 150 customers) has helped the company enter additional layers of the spine for routing and data-center interconnect, where Cisco and Juniper were dominant names. Moreover, ample cash balance provides Arista the flexibility required to pursue any growth strategy, whether by way of acquisitions or otherwise. However, Arista faces stiff competition in the cloud networking solutions, particularly in the 10 Gigabit Ethernet and above. Moreover, ongoing lawsuits with Cisco are the primary headwind.”

ANET has been the subject of several other research reports. UBS Group increased their target price on Arista Networks from $165.00 to $200.00 and gave the company a “neutral” rating in a research note on Friday, November 3rd. Morgan Stanley increased their target price on Arista Networks from $210.00 to $260.00 and gave the company an “overweight” rating in a research note on Thursday, December 21st. BidaskClub upgraded Arista Networks from a “buy” rating to a “strong-buy” rating in a research note on Tuesday, October 31st. Loop Capital assumed coverage on Arista Networks in a research note on Monday, January 29th. They set a “hold” rating and a $250.00 target price for the company. Finally, Goldman Sachs Group assumed coverage on Arista Networks in a research report on Wednesday, February 7th. They issued a “buy” rating and a $320.00 price objective for the company. Fifteen equities research analysts have rated the stock with a hold rating, eighteen have given a buy rating and one has issued a strong buy rating to the company’s stock. Arista Networks has a consensus rating of “Buy” and an average price target of $230.17.

Shares of Arista Networks (NYSE:ANET) traded up $4.08 during trading hours on Wednesday, reaching $296.66. The company had a trading volume of 662,106 shares, compared to its average volume of 862,709. Arista Networks has a 1 year low of $99.51 and a 1 year high of $299.00. The company has a market cap of $20,800.06, a P/E ratio of 61.28, a price-to-earnings-growth ratio of 2.19 and a beta of 1.47. The company has a debt-to-equity ratio of 0.03, a quick ratio of 3.07 and a current ratio of 3.66.

In other news, insider Ita M. Brennan sold 3,500 shares of the stock in a transaction that occurred on Friday, December 1st. The stock was sold at an average price of $229.97, for a total value of $804,895.00. Following the completion of the transaction, the insider now directly owns 17,677 shares of the company’s stock, valued at approximately $4,065,179.69. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, SVP Marc Taxay sold 2,000 shares of the stock in a transaction that occurred on Friday, December 1st. The stock was sold at an average price of $230.09, for a total value of $460,180.00. Following the completion of the transaction, the senior vice president now directly owns 12,335 shares of the company’s stock, valued at $2,838,160.15. The disclosure for this sale can be found here. Over the last three months, insiders sold 385,683 shares of company stock valued at $92,010,804. 28.09% of the stock is currently owned by insiders.

Several institutional investors and hedge funds have recently modified their holdings of the company. Jackson Square Partners LLC raised its holdings in shares of Arista Networks by 380.2% in the 4th quarter. Jackson Square Partners LLC now owns 1,272,515 shares of the technology company’s stock worth $299,779,000 after buying an additional 1,007,491 shares in the last quarter. State Street Corp raised its holdings in shares of Arista Networks by 44.7% in the 2nd quarter. State Street Corp now owns 1,063,294 shares of the technology company’s stock worth $159,278,000 after buying an additional 328,534 shares in the last quarter. First Trust Advisors LP raised its holdings in shares of Arista Networks by 18.5% in the 4th quarter. First Trust Advisors LP now owns 904,279 shares of the technology company’s stock worth $213,030,000 after buying an additional 140,944 shares in the last quarter. Renaissance Technologies LLC raised its holdings in shares of Arista Networks by 22.2% in the 4th quarter. Renaissance Technologies LLC now owns 826,200 shares of the technology company’s stock worth $194,636,000 after buying an additional 150,000 shares in the last quarter. Finally, Eaton Vance Management raised its holdings in shares of Arista Networks by 0.9% in the 4th quarter. Eaton Vance Management now owns 738,194 shares of the technology company’s stock worth $173,904,000 after buying an additional 6,374 shares in the last quarter. 58.15% of the stock is owned by institutional investors and hedge funds.

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About Arista Networks

Arista Networks, Inc is a supplier of cloud networking solutions that use software innovations to address the needs of Internet companies, cloud service providers and data centers for enterprise support. It develops, markets and sells cloud networking solutions, which consist of its Gigabit Ethernet switches and related software.

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