Arista Networks (NYSE:ANET) Shares Climb 5.1% – What’s Next?

Arista Networks, Inc. (NYSE:ANET) shares were up 5.1% during trading on Thursday. The stock traded as high as $207.17 and last traded at $206.6690. 9,251,722 shares changed hands during mid-day trading, an increase of 17% from the average session volume of 7,940,643 shares. The stock had previously closed at $196.68.

Key Arista Networks News

Here’s some of the latest news about ANET:

• Positive Sentiment: Analysts see potential upside: the average price target cited by Zacks implies about 27% appreciation, and the publication says upward earnings-estimate revisions add support to the bullish case. Article: Wall Street Analysts Think Arista Networks Could Surge 27.15%
• Positive Sentiment: Arista reported third-quarter revenue growth of 58.5% year over year and forecast fourth-quarter revenue of $3.9 billion to $4.0 billion. Management also projected approximately $18.5 billion in fiscal 2027 revenue, reinforcing the growth case. Article: Arista Networks: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Co-founder share sales totaling about $668 million since May have attracted attention. The report cautions that SEC-filing details may make the sales less bearish than they first appear. Article: Arista’s Co-founder Has Sold About $668 Million of Stock Since May

Analysts Set New Price Targets

ANET has been the subject of a number of recent analyst reports. Citigroup restated a “buy” rating and issued a $248.00 target price (up from $215.00) on shares of Arista Networks in a report on Thursday, October 8th. Weiss Ratings cut Arista Networks from a “buy (b)” rating to a “hold (c+)” rating in a report on Wednesday, November 4th. Barclays decreased their price objective on shares of Arista Networks from $289.00 to $236.00 and set an “overweight” rating for the company in a research note on Wednesday, November 4th. Deutsche Bank initiated coverage on Arista Networks in a research report on Monday, August 31st. They issued a “buy” rating and a $220.00 target price for the company. Finally, Wall Street Zen upgraded Arista Networks from a “hold” rating to a “buy” rating in a report on Saturday, November 7th. Four equities research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Buy” and a consensus target price of $240.24.

Arista Networks Stock Performance

The business’s fifty day simple moving average is $192.35 and its 200 day simple moving average is $166.53. The stock has a market cap of $261.11 billion, a price-to-earnings ratio of 55.56, a price-to-earnings-growth ratio of 1.65 and a beta of 1.61.

Arista Networks (NYSE:ANET) last announced its earnings results on Tuesday, November 3rd. The technology company reported $1.20 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.08 by $0.12. The business had revenue of $3.66 billion for the quarter, compared to analyst estimates of $3.33 billion. Arista Networks had a return on equity of 32.20% and a net margin of 39.97%. The company’s revenue for the quarter was up 58.5% compared to the same quarter last year. During the same period in the previous year, the company earned $0.75 earnings per share. As a group, analysts forecast that Arista Networks, Inc. will post 4.01 EPS for the current fiscal year.

Insider Buying and Selling at Arista Networks

In related news, CEO Jayshree Ullal sold 460,374 shares of the company’s stock in a transaction on Tuesday, October 6th. The shares were sold at an average price of $212.09, for a total value of $97,640,721.66. Following the sale, the chief executive officer directly owned 4,811,207 shares of the company’s stock, valued at $1,020,408,892.63. This represents a 8.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Kenneth Duda sold 26,000 shares of the stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $185.42, for a total transaction of $4,820,920.00. Following the transaction, the insider owned 452,400 shares in the company, valued at $83,884,008. This trade represents a 5.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 2,067,489 shares of company stock valued at $406,340,373 in the last three months. Corporate insiders own 2.70% of the company’s stock.

Institutional Investors Weigh In On Arista Networks

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Cura Wealth Advisors LLC raised its stake in Arista Networks by 3.1% during the second quarter. Cura Wealth Advisors LLC now owns 1,748 shares of the technology company’s stock valued at $297,000 after buying an additional 52 shares in the last quarter. Affinity Capital Advisors LLC grew its position in shares of Arista Networks by 1.4% in the 3rd quarter. Affinity Capital Advisors LLC now owns 3,770 shares of the technology company’s stock worth $817,000 after acquiring an additional 53 shares in the last quarter. Global Assets Advisory LLC grew its position in shares of Arista Networks by 0.9% in the 3rd quarter. Global Assets Advisory LLC now owns 6,352 shares of the technology company’s stock worth $1,318,000 after acquiring an additional 57 shares in the last quarter. Madison Wealth Partners Inc increased its holdings in shares of Arista Networks by 2.8% in the 2nd quarter. Madison Wealth Partners Inc now owns 2,179 shares of the technology company’s stock valued at $370,000 after acquiring an additional 60 shares during the last quarter. Finally, Richardson Financial Services Inc. increased its holdings in shares of Arista Networks by 3.2% in the 3rd quarter. Richardson Financial Services Inc. now owns 1,912 shares of the technology company’s stock valued at $389,000 after acquiring an additional 60 shares during the last quarter. Institutional investors own 82.47% of the company’s stock.

Arista Networks Company Profile

Arista Networks, Inc. develops software-driven networking products for large data centers, cloud environments, AI workloads, and enterprise campuses. Its offerings include Ethernet switches and routers, along with software and services for managing, monitoring, and securing networks. The company’s software portfolio includes its Extensible Operating System (EOS), which runs across its networking platforms, and CloudVision, a platform for network automation and management. Arista’s products are used by cloud providers, businesses, and other organizations to connect and manage computing infrastructure.