Arista Networks (NYSE:ANET) Share Price Breaks Below 200-Day Moving Average – Should You Sell?

Arista Networks, Inc. (NYSE:ANET) passed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $164.87 and traded as low as $163.25. Arista Networks shares last traded at $163.9490, with a volume of 7,077,067 shares changing hands.

Arista Networks News Roundup

Here are the key news stories impacting Arista Networks this week:

• Positive Sentiment: Arista reported third-quarter revenue of $3.66 billion, up 58.5% year over year and above the $3.33 billion consensus. EPS of $1.20 also topped estimates of $1.08. Management raised its 2026 revenue outlook to $13.3 billion. Article: ANET Q3 Earnings Beat Estimates on Strong AI and Enterprise Demand
• Positive Sentiment: Management forecast roughly $18.5 billion in 2027 revenue, implying 38%–40% growth versus Wall Street expectations of about 28%. AI-fabric revenue is projected to double to around $7 billion, reflecting demand for networking infrastructure in AI data centers. Article: Arista Networks gets BofA backing as 2027 growth outlook tops Street
• Positive Sentiment: Analysts responded with bullish ratings and higher targets: Bank of America reiterated Buy with a $240 target, while JPMorgan raised its target to $270 and Piper Sandler to $261. These revisions signal confidence in Arista’s growth prospects.
• Neutral Sentiment: Director Mark Templeton and major shareholder Andreas Bechtolsheim disclosed stock sales under pre-arranged Rule 10b5-1 plans. Bechtolsheim’s sale represented only 0.15% of his holdings, so the transactions may be less indicative of a change in business outlook. Article: Arista Networks insider transactions
• Negative Sentiment: Gross margin pressure is a watch point: a larger hardware mix is expected to weigh on margins, even as operating margins remain strong. Arista’s premium valuation also leaves the stock sensitive to any shortfall against its ambitious growth targets. Article: Arista Revenue Up 58% as Q4 Outlook Slows

Analyst Upgrades and Downgrades

Several analysts have recently commented on ANET shares. Evercore reiterated an “outperform” rating on shares of Arista Networks in a research report on Monday. Rosenblatt Securities restated a “buy” rating and set a $280.00 price objective on shares of Arista Networks in a research report on Wednesday. UBS Group reaffirmed a “buy” rating and issued a $291.00 target price (up from $259.00) on shares of Arista Networks in a research note on Wednesday. Morgan Stanley reaffirmed an “overweight” rating and issued a $230.00 target price (up from $220.00) on shares of Arista Networks in a research note on Wednesday. Finally, Deutsche Bank Aktiengesellschaft initiated coverage on Arista Networks in a report on Monday, August 31st. They set a “buy” rating and a $220.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Arista Networks presently has an average rating of “Buy” and a consensus target price of $240.24.

Arista Networks Stock Up 4.9%

The business’s fifty day moving average is $194.05 and its 200-day moving average is $165.34. The stock has a market capitalization of $224.80 billion, a PE ratio of 47.20, a P/E/G ratio of 1.97 and a beta of 1.61.

Arista Networks (NYSE:ANET) last announced its quarterly earnings results on Tuesday, November 3rd. The technology company reported $1.20 EPS for the quarter, topping the consensus estimate of $1.08 by $0.12. Arista Networks had a return on equity of 33.92% and a net margin of 39.97%. The company had revenue of $3.66 billion during the quarter, compared to analyst estimates of $3.33 billion. During the same period in the prior year, the firm posted $0.75 earnings per share. The firm’s revenue was up 58.5% on a year-over-year basis. As a group, sell-side analysts anticipate that Arista Networks, Inc. will post 3.79 EPS for the current fiscal year.

Insider Buying and Selling at Arista Networks

In related news, major shareholder Andreas Bechtolsheim sold 300,000 shares of the firm’s stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $198.95, for a total transaction of $59,685,000.00. Following the completion of the sale, the insider directly owned 180,543,048 shares of the company’s stock, valued at approximately $35,919,039,399.60. This trade represents a 0.17% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jayshree Ullal sold 573,509 shares of the firm’s stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $208.13, for a total value of $119,364,428.17. Following the sale, the chief executive officer owned 25,000 shares of the company’s stock, valued at approximately $5,203,250. This trade represents a 95.82% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 2,492,846 shares of company stock valued at $504,246,503 over the last 90 days. Insiders own 2.70% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ANET. Davidson Trust Co. acquired a new position in Arista Networks during the 3rd quarter worth about $3,512,000. Deutsche Bank AG increased its position in Arista Networks by 4.3% in the 2nd quarter. Deutsche Bank AG now owns 9,357,496 shares of the technology company’s stock valued at $1,589,651,000 after acquiring an additional 388,354 shares in the last quarter. Ferguson Wellman Capital Management Inc. increased its position in Arista Networks by 2,827.9% in the 3rd quarter. Ferguson Wellman Capital Management Inc. now owns 52,381 shares of the technology company’s stock valued at $10,664,000 after acquiring an additional 50,592 shares in the last quarter. First National Bank of Mount Dora Trust Investment Services acquired a new stake in Arista Networks in the 1st quarter valued at about $5,279,000. Finally, Whitaker Myers Wealth Managers LTD. raised its stake in shares of Arista Networks by 564.1% in the second quarter. Whitaker Myers Wealth Managers LTD. now owns 16,847 shares of the technology company’s stock worth $2,862,000 after acquiring an additional 14,310 shares during the last quarter. Institutional investors and hedge funds own 82.47% of the company’s stock.

Arista Networks Company Profile

Arista Networks, Inc develops and sells cloud networking solutions for data centers, cloud service providers, enterprises and specialized computing environments. The company’s products are designed to support high-performance, scalable and automated networks used for cloud computing, artificial intelligence, data analytics and other demanding applications.

Arista’s portfolio includes data center and campus switches, routing platforms, wireless networking products, network operating software and network management tools.