Arista Networks (NYSE:ANET) Trading Down 1.8% – Should You Sell?

Arista Networks, Inc. (NYSE:ANET) shares fell 1.8% during mid-day trading on Wednesday . The stock traded as low as $184.08 and last traded at $185.7770. 4,225,679 shares were traded during trading, a decline of 50% from the average daily volume of 8,382,116 shares. The stock had previously closed at $189.26.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. KeyCorp reaffirmed an “overweight” rating and set a $250.00 target price (up from $200.00) on shares of Arista Networks in a research report on Wednesday, August 5th. Wolfe Research restated an “outperform” rating and issued a $175.00 price objective on shares of Arista Networks in a research note on Wednesday, June 10th. UBS Group reaffirmed a “buy” rating and set a $259.00 price objective (up from $187.00) on shares of Arista Networks in a report on Wednesday, August 5th. Erste Group Bank upgraded shares of Arista Networks from a “hold” rating to a “buy” rating in a report on Wednesday, July 15th. Finally, Weiss Ratings lowered shares of Arista Networks from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, August 12th. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, Arista Networks has an average rating of “Buy” and an average price target of $225.76.

Arista Networks Stock Performance

The firm has a 50 day moving average price of $181.23 and a two-hundred day moving average price of $159.22. The company has a market capitalization of $234.31 billion, a P/E ratio of 58.60, a price-to-earnings-growth ratio of 2.64 and a beta of 1.62.

Arista Networks (NYSE:ANET) last announced its earnings results on Tuesday, August 4th. The technology company reported $1.02 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.89 by $0.13. Arista Networks had a net margin of 38.37% and a return on equity of 30.65%. The business had revenue of $3.04 billion during the quarter, compared to analysts’ expectations of $2.83 billion. During the same quarter last year, the company posted $0.73 EPS. The firm’s revenue for the quarter was up 37.7% on a year-over-year basis. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. On average, equities analysts expect that Arista Networks, Inc. will post 3.7 earnings per share for the current year.

Insider Buying and Selling at Arista Networks

In other Arista Networks news, CEO Jayshree Ullal sold 767,029 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $201.22, for a total value of $154,341,575.38. Following the transaction, the chief executive officer directly owned 16,387,981 shares in the company, valued at approximately $3,297,589,536.82. This trade represents a 4.47% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Andreas Bechtolsheim sold 300,000 shares of the firm’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $203.30, for a total transaction of $60,990,000.00. Following the completion of the transaction, the insider directly owned 181,143,048 shares in the company, valued at $36,826,381,658.40. This trade represents a 0.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 4,242,082 shares of company stock worth $800,487,376. Company insiders own 2.70% of the company’s stock.

Institutional Investors Weigh In On Arista Networks

Hedge funds have recently modified their holdings of the business. Main Street Group LTD bought a new stake in shares of Arista Networks during the first quarter worth $26,000. Sankala Group LLC acquired a new position in shares of Arista Networks during the 4th quarter worth approximately $27,000. Prosperity Bancshares Inc bought a new stake in Arista Networks during the fourth quarter worth $28,000. ABS Investment Management LLC acquired a new stake in Arista Networks in the second quarter valued at $29,000. Finally, Hilton Head Capital Partners LLC raised its stake in Arista Networks by 184.9% in the first quarter. Hilton Head Capital Partners LLC now owns 245 shares of the technology company’s stock valued at $30,000 after buying an additional 159 shares during the period. Institutional investors and hedge funds own 82.47% of the company’s stock.

Arista Networks Company Profile

Arista Networks, Inc is a technology company that designs and sells cloud networking solutions for large-scale data centers and enterprise environments. The company is best known for its high-performance switching and routing platforms, which are used to build scalable, low-latency networks for cloud service providers, internet companies, financial services, telecommunications, and enterprise IT. Arista’s offerings emphasize programmability, automation and telemetry to support modern, software-driven network architectures.

Central to Arista’s product portfolio is its Extensible Operating System (EOS), a modular network operating system that provides consistent programmability, stateful control and advanced visibility across the company’s hardware platforms.