Arista Networks (NYSE:ANET) Raised to “Buy” at Wall Street Zen

Arista Networks (NYSE:ANET) was upgraded by analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a note issued to investors on Saturday, Wall Street Zen reports.

A number of other equities analysts have also recently weighed in on ANET. KeyCorp reaffirmed an “overweight” rating and issued a $250.00 price target (up from $200.00) on shares of Arista Networks in a report on Wednesday, August 5th. Needham & Company LLC reissued a “buy” rating and issued a $260.00 price objective on shares of Arista Networks in a report on Wednesday. UBS Group restated a “buy” rating and issued a $291.00 price objective (up from $259.00) on shares of Arista Networks in a research report on Wednesday. Weiss Ratings downgraded Arista Networks from a “buy (b)” rating to a “hold (c+)” rating in a research note on Wednesday. Finally, Citigroup reiterated a “buy” rating and set a $248.00 target price (up from $215.00) on shares of Arista Networks in a research report on Thursday, October 8th. Three analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Buy” and an average target price of $240.24.

Arista Networks Stock Performance

ANET stock opened at $170.70 on Friday. The firm has a market cap of $215.66 billion, a PE ratio of 45.89, a P/E/G ratio of 1.59 and a beta of 1.61. The firm’s fifty day moving average is $192.59 and its 200 day moving average is $165.70. Arista Networks has a one year low of $114.52 and a one year high of $217.41.

Arista Networks (NYSE:ANET) last issued its quarterly earnings data on Tuesday, November 3rd. The technology company reported $1.20 earnings per share for the quarter, topping analysts’ consensus estimates of $1.08 by $0.12. Arista Networks had a net margin of 39.97% and a return on equity of 32.20%. The business had revenue of $3.66 billion during the quarter, compared to the consensus estimate of $3.33 billion. During the same quarter in the prior year, the firm posted $0.75 earnings per share. The company’s revenue was up 58.5% compared to the same quarter last year. Research analysts predict that Arista Networks will post 3.85 earnings per share for the current fiscal year.

Insider Buying and Selling at Arista Networks

In other Arista Networks news, insider Kenneth Duda sold 26,000 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $185.42, for a total transaction of $4,820,920.00. Following the completion of the transaction, the insider owned 452,400 shares of the company’s stock, valued at $83,884,008. This represents a 5.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 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, 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 completion of the transaction, the chief executive officer owned 25,000 shares in the company, valued at approximately $5,203,250. This trade represents a 95.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 2,380,998 shares of company stock valued at $482,687,801 over the last quarter. 2.70% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. MSH Capital Advisors LLC purchased a new position in shares of Arista Networks during the 3rd quarter worth about $652,000. Cornerstone Advisory LLC grew its holdings in Arista Networks by 7.0% in the third quarter. Cornerstone Advisory LLC now owns 2,039 shares of the technology company’s stock valued at $415,000 after purchasing an additional 133 shares during the period. Ibex Wealth Advisors grew its holdings in Arista Networks by 31.2% in the third 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. purchased a new stake in Arista Networks in the third quarter valued at approximately $474,000. Finally, Aberdeen Group plc increased its position in Arista Networks by 1.2% during the third quarter. Aberdeen Group plc now owns 1,201,157 shares of the technology company’s stock worth $244,544,000 after purchasing an additional 14,384 shares during the last quarter. Hedge funds and other institutional investors own 82.47% of the company’s stock.

Key Arista Networks News

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.