Arista Networks (NYSE:ANET) Stock Price Up 6.4% – Here’s What Happened

Arista Networks, Inc. (NYSE:ANET)’s share price shot up 6.4% during mid-day trading on Wednesday. The stock traded as high as $199.46 and last traded at $196.8110. 8,358,520 shares traded hands during mid-day trading, an increase of 5% from the average daily volume of 7,934,457 shares. The stock had previously closed at $185.02.

Trending Headlines about Arista Networks

These are some of the ANET headlines that stood out recently:

• Positive Sentiment: Arista beat third-quarter earnings expectations and issued fourth-quarter revenue guidance of $3.9 billion to $4.0 billion, above its third-quarter revenue. The results and higher outlook support the company’s AI-related growth story. Arista Networks guides higher
• Neutral Sentiment: Analyst price targets imply potential upside, and Arista is highlighted in a list of high-return-on-equity stocks. These are supportive indicators, though neither guarantees near-term share performance. Analyst price-target outlook
• Negative Sentiment: Sector weakness appears to be weighing on ANET: Cisco and Hewlett Packard Enterprise also retreated, with Cisco’s outlook prompting concerns that networking growth may have peaked. That caution could temper enthusiasm for Arista despite its own strong guidance. Networking stocks and growth concerns

Wall Street Analyst Weigh In

ANET has been the topic of several recent research reports. Melius Research set a $305.00 price target on Arista Networks in a research report on Wednesday, November 4th. TD Cowen reduced their target price on Arista Networks from $250.00 to $205.00 and set a “buy” rating on the stock in a report on Monday, October 19th. 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. Truist Financial upped their price target on Arista Networks from $234.00 to $240.00 and gave the company a “buy” rating in a research note on Wednesday, November 4th. Finally, Deutsche Bank began coverage on shares of Arista Networks in a research report on Monday, August 31st. They issued a “buy” rating and a $220.00 price target on the stock. Four investment analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Buy” and an average price target of $240.24.

Arista Networks Stock Performance

The stock’s 50-day moving average is $192.77 and its 200 day moving average is $166.84. The firm has a market cap of $249.20 billion, a P/E ratio of 53.02, a PEG ratio of 1.75 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 EPS for the quarter, topping the consensus estimate of $1.08 by $0.12. Arista Networks had a return on equity of 32.20% and a net margin of 39.97%. The business had revenue of $3.66 billion for the quarter, compared to the consensus estimate of $3.33 billion. During the same quarter last year, the business posted $0.75 EPS. The firm’s revenue was up 58.5% compared to the same quarter last year. On average, research analysts anticipate that Arista Networks, Inc. will post 4.01 EPS for the current year.

Insider Activity at Arista Networks

In other Arista Networks news, insider Kenneth Duda sold 26,000 shares of Arista Networks stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $185.42, for a total value of $4,820,920.00. Following the transaction, the insider owned 452,400 shares of the company’s stock, valued at approximately $83,884,008. The trade was a 5.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 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 company’s stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $202.60, for a total transaction of $60,780,000.00. Following the completion of the transaction, the insider owned 180,843,048 shares of the company’s stock, valued at $36,638,801,524.80. This trade represents a 0.17% 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. In the last three months, insiders sold 2,067,489 shares of company stock worth $406,340,373. 2.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On Arista Networks

Large investors have recently made changes to their positions in the stock. New World Advisors LLC raised its stake in shares of Arista Networks by 7.6% in the 3rd quarter. New World Advisors LLC now owns 1,484 shares of the technology company’s stock valued at $302,000 after purchasing an additional 105 shares during the period. State Board of Administration of Florida Retirement System lifted its holdings in shares of Arista Networks by 8.2% in the third quarter. State Board of Administration of Florida Retirement System now owns 964,944 shares of the technology company’s stock valued at $196,453,000 after purchasing an additional 73,258 shares in the last quarter. 49 Wealth Management LLC bought a new stake in shares of Arista Networks in the third quarter valued at about $275,000. Pinnbrook Capital Management LP boosted its position in shares of Arista Networks by 450.7% during the third quarter. Pinnbrook Capital Management LP now owns 52,319 shares of the technology company’s stock worth $10,652,000 after buying an additional 42,819 shares during the period. Finally, Mosaic Family Wealth Partners LLC boosted its position in shares of Arista Networks by 3.4% during the third quarter. Mosaic Family Wealth Partners LLC now owns 8,843 shares of the technology company’s stock worth $1,800,000 after buying an additional 294 shares during the period. Institutional investors own 82.47% of the company’s stock.

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.