Arista Networks (NYSE:ANET) Stock Moved Up to Buy by Wall Street Zen

Wall Street Zen upgraded shares of Arista Networks (NYSE:ANET) from a hold rating to a buy rating in a report published on Saturday,Wall Street Zen reports.

A number of other research firms also recently weighed in on ANET. UBS Group restated a “buy” rating and issued a $291.00 target price (up from $259.00) on shares of Arista Networks in a report on Wednesday. Sanford C. Bernstein initiated coverage on shares of Arista Networks in a report on Wednesday, September 30th. They issued an “outperform” rating and a $250.00 price target for the company. TD Cowen dropped their price target on Arista Networks from $250.00 to $205.00 and set a “buy” rating for the company in a research report on Monday, October 19th. Truist Financial lifted their price target on Arista Networks from $234.00 to $240.00 and gave the stock a “buy” rating in a research report on Wednesday. Finally, Weiss Ratings cut Arista Networks from a “buy (b)” rating to a “hold (c+)” rating in a research note on Wednesday. Three equities research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average price target of $240.24.

Arista Networks Trading Up 7.2%

Shares of ANET stock opened at $170.70 on Friday. The stock’s 50-day moving average price is $192.59 and its 200-day moving average price is $165.70. Arista Networks has a 12-month low of $114.52 and a 12-month high of $217.41. The stock has a market capitalization of $215.66 billion, a price-to-earnings ratio of 45.89, a price-to-earnings-growth ratio of 1.71 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 earnings per share for the quarter, topping the consensus estimate of $1.08 by $0.12. The company had revenue of $3.66 billion for the quarter, compared to analysts’ expectations of $3.33 billion. Arista Networks had a net margin of 39.97% and a return on equity of 32.20%. Arista Networks’s quarterly revenue was up 58.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.75 earnings per share. As a group, research analysts predict that Arista Networks will post 3.85 EPS for the current fiscal year.

Insider Buying and Selling at Arista Networks

In other news, major shareholder Andreas Bechtolsheim sold 300,000 shares of the stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $198.95, for a total value of $59,685,000.00. Following the sale, the insider owned 180,543,048 shares of the company’s stock, valued at approximately $35,919,039,399.60. This represents a 0.17% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed 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 dated Wednesday, August 12th. The stock was sold at an average price of $208.13, for a total transaction of $119,364,428.17. Following the completion of the sale, the chief executive officer owned 25,000 shares of the company’s stock, valued at $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 have sold 2,380,998 shares of company stock worth $482,687,801 over the last quarter. Insiders own 2.70% of the company’s stock.

Institutional Trading of Arista Networks

Several institutional investors have recently added to or reduced their stakes in the company. State Street Corp raised its stake in Arista Networks by 159.4% in the second quarter. State Street Corp now owns 121,303,125 shares of the technology company’s stock worth $20,606,975,000 after buying an additional 74,541,134 shares in the last quarter. Jupiter Topco LLC bought a new stake in Arista Networks during the 2nd quarter valued at $1,101,860,000. Envestnet Asset Management Inc. boosted its position in Arista Networks by 199.0% during the 2nd quarter. Envestnet Asset Management Inc. now owns 9,630,196 shares of the technology company’s stock valued at $1,635,978,000 after acquiring an additional 6,409,612 shares in the last quarter. Alyeska Investment Group L.P. purchased a new position in shares of Arista Networks in the 2nd quarter valued at $537,736,000. Finally, Massachusetts Financial Services Co. MA increased its holdings in shares of Arista Networks by 34.6% in the 2nd quarter. Massachusetts Financial Services Co. MA now owns 9,725,196 shares of the technology company’s stock valued at $1,712,788,000 after acquiring an additional 2,497,275 shares during the period. Institutional investors own 82.47% of the company’s stock.

Trending Headlines about Arista Networks

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 estimates, while EPS of $1.20 also beat expectations. The company raised its outlook, citing demand for AI data-center networking, Ethernet adoption, and growth across hyperscale and enterprise customers. Read More.
• Positive Sentiment: Analyst support offers another tailwind: Melius Research initiated coverage with a “strong-buy” rating, while other recent reports cited buy ratings and bullish price targets. Read More.
• Neutral Sentiment: The recent selloff has left investors debating whether the pullback creates a buying opportunity. ANET has declined substantially over the past month despite its strong results, leaving sentiment divided. Read More.
• Negative Sentiment: Valuation and customer concentration remain risks: Arista’s premium forward earnings multiple leaves less room for disappointment, while reliance on a limited number of large customers could make growth more vulnerable to spending changes. Read More.
• Negative Sentiment: Shares have also faced pressure from a broader AI-infrastructure stock selloff and reported insider sales. Those sales included transactions under pre-arranged trading plans, but can still add to near-term investor caution. Read More.

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.

Founded in 2004 and headquartered in Santa Clara, California, Arista serves customers worldwide.