Arista Networks (NYSE:ANET) Downgraded by Zacks Research to Hold

Zacks Research cut shares of Arista Networks (NYSE:ANET) from a strong-buy rating to a hold rating in a research report released on Monday morning,Zacks reports.

Several other brokerages have also recently commented on ANET. TD Cowen upped their target price on shares of Arista Networks from $210.00 to $250.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. UBS Group reiterated a “buy” rating and issued a $259.00 price objective (up from $187.00) on shares of Arista Networks in a report on Wednesday, August 5th. Piper Sandler restated an “overweight” rating and set a $240.00 target price (up from $181.00) on shares of Arista Networks in a report on Wednesday, August 5th. The Goldman Sachs Group restated a “buy” rating and set a $225.00 target price on shares of Arista Networks in a research report on Wednesday, August 5th. Finally, Erste Group Bank raised Arista Networks from a “hold” rating to a “buy” rating in a research note on Wednesday, July 15th. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average target price of $231.70.

Arista Networks Trading Up 4.2%

Arista Networks stock opened at $215.50 on Monday. The company has a market cap of $271.79 billion, a PE ratio of 67.98, a PEG ratio of 2.43 and a beta of 1.60. Arista Networks has a 1 year low of $114.52 and a 1 year high of $216.07. The company’s 50-day moving average is $195.43 and its two-hundred day moving average is $170.62.

Arista Networks (NYSE:ANET) last issued its quarterly earnings results on Tuesday, August 4th. The technology company reported $1.02 EPS for the quarter, topping the consensus estimate of $0.89 by $0.13. Arista Networks had a net margin of 38.37% and a return on equity of 30.65%. The company had revenue of $3.04 billion during the quarter, compared to analysts’ expectations of $2.83 billion. During the same quarter in the previous year, the company earned $0.73 EPS. Arista Networks’s revenue was up 37.7% on a year-over-year basis. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. Research analysts forecast that Arista Networks will post 3.74 EPS for the current year.

Insider Activity

In other Arista Networks news, major shareholder Andreas Bechtolsheim sold 300,000 shares of the business’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $203.30, for a total value of $60,990,000.00. Following the completion of the transaction, the insider directly owned 181,143,048 shares of the company’s stock, valued at approximately $36,826,381,658.40. The trade was a 0.17% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jayshree Ullal sold 767,029 shares of the stock in a transaction dated 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 completion of the sale, the chief executive officer owned 16,387,981 shares of the company’s stock, valued at $3,297,589,536.82. This trade represents a 4.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 3,387,316 shares of company stock worth $676,926,570. Corporate insiders own 2.70% of the company’s stock.

Institutional Trading of Arista Networks

Several hedge funds have recently bought and sold shares of the stock. State Street Corp increased its position in shares of Arista Networks by 159.4% during the second quarter. State Street Corp now owns 121,303,125 shares of the technology company’s stock worth $20,606,975,000 after acquiring an additional 74,541,134 shares in the last quarter. Massachusetts Financial Services Co. MA lifted its position in 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 in the last quarter. Envestnet Asset Management Inc. boosted its stake in Arista Networks by 199.0% in the 2nd quarter. Envestnet Asset Management Inc. now owns 9,630,196 shares of the technology company’s stock worth $1,635,978,000 after purchasing an additional 6,409,612 shares during the period. Deutsche Bank AG increased its holdings in Arista Networks by 4.3% during the 2nd quarter. Deutsche Bank AG now owns 9,357,496 shares of the technology company’s stock worth $1,589,651,000 after purchasing an additional 388,354 shares in the last quarter. Finally, Wellington Management Group LLP increased its holdings in Arista Networks by 5.9% during the 2nd quarter. Wellington Management Group LLP now owns 8,440,963 shares of the technology company’s stock worth $1,433,951,000 after purchasing an additional 470,451 shares in the last quarter. 82.47% of the stock is currently owned by institutional investors and hedge funds.

Key Arista Networks News

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

• Positive Sentiment: Arista reached $215.36, a new 52-week high, while the broader market extended its rally. Arista was listed alongside Astera Labs and GE Vernova as a leading AI-stock purchase, reinforcing investor appetite for AI infrastructure companies. Arista Networks reaches a fresh 52-week high
• Positive Sentiment: Reports attributed gains across Arista, Cisco and Ciena to rising demand for AI networking equipment. Ciena led the group, but the move supports the investment case for Arista’s Ethernet switching and data-center infrastructure business. AI networking demand lifts networking stocks
• Positive Sentiment: Bernstein began coverage of Arista with an “Outperform” rating, adding another favorable institutional research view. Broader analyst coverage remains supportive, with the company carrying a consensus “Buy” rating and a reported average price target of $231.70. Bernstein starts coverage with an Outperform rating
• Neutral Sentiment: Arista will report third-quarter 2026 results after the market closes on November 3, followed by a management conference call. The announcement gives investors a defined near-term catalyst, with results likely to test whether AI-driven demand is translating into revenue and earnings growth. Arista schedules third-quarter 2026 results
• Negative Sentiment: Director Mark Templeton sold 5,000 shares worth approximately $1.02 million. Because the transaction was conducted under a pre-arranged Rule 10b5-1 plan, it is a limited bearish signal, but it may still attract attention after the stock’s strong advance. Director insider sale

About Arista Networks

Arista Networks, Inc develops and sells cloud networking solutions for data centers, campus environments and high-performance computing applications. Its products include Ethernet switches, routers, wireless access points and related networking equipment designed to support cloud computing, artificial intelligence, enterprise and service-provider networks.

The company’s software portfolio includes Arista EOS, its network operating system, and CloudVision, a platform that helps customers manage, automate and monitor network infrastructure.