Arista Networks (NYSE:ANET) Price Target Raised to $240.00

Arista Networks (NYSE:ANET) had its price target upped by Truist Financial from $234.00 to $240.00 in a research report sent to investors on Wednesday morning, Marketbeat reports. The firm currently has a buy rating on the technology company’s stock.

Other equities research analysts also recently issued research reports about the stock. Piper Sandler reissued an “overweight” rating and issued a $240.00 target price (up from $181.00) on shares of Arista Networks in a research report on Wednesday, August 5th. Wells Fargo & Company reaffirmed an “overweight” rating and set a $245.00 price target (down from $255.00) on shares of Arista Networks in a research report on Wednesday. Zacks Research cut shares of Arista Networks from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 5th. Jefferies Financial Group set a $250.00 price target on Arista Networks in a research note on Wednesday, August 5th. Finally, Erste Group Bank raised Arista Networks from a “hold” rating to a “buy” rating in a report on Wednesday, July 15th. Three investment analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Buy” and a consensus target price of $240.24.

Arista Networks Stock Performance

Shares of ANET stock traded up $11.54 during mid-day trading on Wednesday, reaching $170.70. 11,977,293 shares of the company were exchanged, compared to its average volume of 6,207,998. The business’s 50 day simple moving average is $192.59 and its 200 day simple moving average is $165.70. The company has a market capitalization of $215.29 billion, a P/E ratio of 45.89, a P/E/G ratio of 1.91 and a beta of 1.61. Arista Networks has a fifty-two week low of $114.52 and a fifty-two week high of $217.41.

Arista Networks (NYSE:ANET) last posted its quarterly earnings results on Tuesday, November 3rd. The technology company reported $1.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.08 by $0.12. Arista Networks had a net margin of 38.37% and a return on equity of 30.65%. The firm had revenue of $3.66 billion for the quarter, compared to analysts’ expectations of $3.33 billion. During the same period in the prior year, the company posted $0.75 earnings per share. The firm’s quarterly revenue was up 58.5% on a year-over-year basis. On average, analysts forecast that Arista Networks will post 3.83 EPS for the current year.

Insiders Place Their Bets

In other Arista Networks news, insider Kenneth Duda sold 26,000 shares of the business’s 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 completion of the sale, the insider owned 452,400 shares in the company, valued at $83,884,008. The trade was a 5.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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. Also, major shareholder Andreas Bechtolsheim sold 300,000 shares of the business’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 sale, the insider owned 180,543,048 shares of the company’s stock, valued at approximately $35,919,039,399.60. The trade was 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. Insiders sold a total of 2,380,998 shares of company stock valued at $482,687,801 over the last 90 days. 2.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On Arista Networks

A number of institutional investors have recently modified their holdings of the business. Cornerstone Advisory LLC lifted its holdings in shares of Arista Networks by 7.0% in the 3rd quarter. Cornerstone Advisory LLC now owns 2,039 shares of the technology company’s stock worth $415,000 after purchasing an additional 133 shares during the last quarter. Ibex Wealth Advisors boosted its position in Arista Networks by 31.2% during the 3rd quarter. Ibex Wealth Advisors now owns 100,069 shares of the technology company’s stock valued at $20,373,000 after purchasing an additional 23,781 shares during the period. Vista Capital Partners Inc. bought a new position in Arista Networks during the 3rd quarter worth $474,000. Aberdeen Group plc increased its position in Arista Networks by 1.2% in the third quarter. Aberdeen Group plc now owns 1,201,157 shares of the technology company’s stock worth $244,544,000 after buying an additional 14,384 shares during the period. Finally, ProVise Management Group LLC bought a new stake in Arista Networks in the third quarter valued at $201,000. Institutional investors own 82.47% of the company’s stock.

Arista Networks News Summary

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.

About Arista Networks

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.