Arista Networks (NYSE:ANET) Shares Climb 5.1% – Time to Buy?

Shares of Arista Networks, Inc. (NYSE:ANET) were up 5.1% on Thursday. The stock traded as high as $207.17 and last traded at $206.6690. 9,251,722 shares traded hands during trading, an increase of 17% from the average daily volume of 7,940,643 shares. The stock had previously closed at $196.68.

Arista Networks News Roundup

Investors following ANET have been watching these news items:

• Positive Sentiment: Analysts see potential upside: the average price target cited by Zacks implies about 27% appreciation, and the publication says upward earnings-estimate revisions add support to the bullish case. Article: Wall Street Analysts Think Arista Networks Could Surge 27.15%
• Positive Sentiment: Arista reported third-quarter revenue growth of 58.5% year over year and forecast fourth-quarter revenue of $3.9 billion to $4.0 billion. Management also projected approximately $18.5 billion in fiscal 2027 revenue, reinforcing the growth case. Article: Arista Networks: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: A technical-trading article noted that ANET had moved back above its 50-day moving average after a strong prior-session gain, a potentially encouraging sign for momentum. Article: Here’s a Bullish Trade to Consider for Recovering Arista Stock

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the stock. Morgan Stanley reaffirmed an “overweight” rating and issued a $230.00 price target (up from $220.00) on shares of Arista Networks in a report on Wednesday, November 4th. UBS Group reiterated a “buy” rating and set a $291.00 price objective (up from $259.00) on shares of Arista Networks in a research note on Wednesday, November 4th. Deutsche Bank initiated coverage on shares of Arista Networks in a report on Monday, August 31st. They issued a “buy” rating and a $220.00 target price on the stock. Rosenblatt Securities restated a “buy” rating and issued a $280.00 target price on shares of Arista Networks in a research note on Wednesday, November 4th. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and set a $225.00 target price on shares of Arista Networks in a report on Wednesday, August 5th. Four analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average price target of $240.24.

Arista Networks Stock Up 5.1%

The firm’s 50-day moving average price is $192.35 and its 200 day moving average price is $166.53. The firm has a market cap of $261.11 billion, a P/E ratio of 55.56, a price-to-earnings-growth ratio of 1.65 and a beta of 1.61.

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, beating the consensus estimate of $1.08 by $0.12. The firm had revenue of $3.66 billion for the quarter, compared to the consensus estimate 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% compared to the same quarter last year. During the same period last year, the firm posted $0.75 EPS. On average, equities analysts predict that Arista Networks, Inc. will post 4.01 earnings per share for the current year.

Insider Activity at Arista Networks

In other news, insider Kenneth Duda sold 17,333 shares of the business’s stock in a transaction that occurred on Tuesday, October 20th. The stock was sold at an average price of $180.91, for a total transaction of $3,135,713.03. Following the completion of the transaction, the insider directly owned 12,976 shares in the company, valued at approximately $2,347,488.16. The trade was a 57.19% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, 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 130,553 shares of the stock in a transaction that occurred on Friday, October 9th. The stock was sold at an average price of $217.10, for a total value of $28,343,056.30. Following the completion of the transaction, the chief executive officer directly owned 4,774,691 shares of the company’s stock, valued at $1,036,585,416.10. This trade represents a 2.66% 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. In the last 90 days, insiders have sold 2,067,489 shares of company stock valued at $406,340,373. Company insiders own 2.70% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. State Street Corp lifted its holdings 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 purchasing an additional 74,541,134 shares during the period. Massachusetts Financial Services Co. MA lifted its stake 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 worth $1,712,788,000 after acquiring an additional 2,497,275 shares during the period. Envestnet Asset Management Inc. boosted its holdings in shares of Arista Networks by 199.0% in the second 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. Deutsche Bank AG boosted its holdings in shares of Arista Networks by 4.3% in the second quarter. Deutsche Bank AG now owns 9,357,496 shares of the technology company’s stock valued at $1,589,651,000 after acquiring an additional 388,354 shares in the last quarter. Finally, Amundi increased its stake in shares of Arista Networks by 5.7% during the first quarter. Amundi now owns 9,064,443 shares of the technology company’s stock valued at $1,112,932,000 after acquiring an additional 491,173 shares during the period. Institutional investors own 82.47% of the company’s stock.

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.