Arista Networks (NYSE:ANET) Stock Rating Raised to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Arista Networks from “hold” to “buy.” MarketBeat reports an average analyst rating of “Buy” and an average price target of $240.24.
• Arista beat quarterly expectations, reporting $1.20 in EPS and $3.66 billion in revenue; revenue rose 58.5% year over year. The article also points to demand for AI data-center networking as a growth driver.
• Analyst views are not unanimous: Weiss Ratings recently downgraded the stock to “hold,” while several firms maintained or issued “buy” ratings. Insiders have also sold shares, including the CEO, in transactions made under pre-arranged trading plans.

Arista Networks (NYSE:ANET - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

Other equities analysts have also issued reports about the company. Weiss Ratings lowered Arista Networks from a "buy (b)" rating to a "hold (c+)" rating in a research note on Wednesday. Rosenblatt Securities restated a "buy" rating and set a $280.00 target price on shares of Arista Networks in a research report on Wednesday. Erste Group Bank raised shares of Arista Networks from a "hold" rating to a "buy" rating in a report on Wednesday, July 15th. TD Cowen dropped their price objective on Arista Networks from $250.00 to $205.00 and set a "buy" rating for the company in a report on Monday, October 19th. Finally, Bank of America reaffirmed a "buy" rating and set a $240.00 target price (up from $200.00) on shares of Arista Networks in a research note on Wednesday, August 5th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Buy" and an average price target of $240.24.

Arista Networks Stock Up 7.2%

NYSE ANET opened at $170.70 on Friday. The company's 50-day simple moving average is $192.59 and its 200 day simple moving average is $165.70. Arista Networks has a twelve month low of $114.52 and a twelve month high of $217.41. The stock has a market cap of $215.29 billion, a P/E ratio of 51.94, a PEG ratio of 1.91 and a beta of 1.61.

Arista Networks (NYSE:ANET - Get Free Report) last issued its earnings results on Tuesday, November 3rd. The technology company reported $1.20 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.08 by $0.12. Arista Networks had a return on equity of 30.65% and a net margin of 38.37%. The firm had revenue of $3.66 billion for the quarter, compared to analysts' expectations of $3.33 billion. During the same quarter last year, the business earned $0.75 earnings per share. The company's revenue was up 58.5% compared to the same quarter last year. Research analysts anticipate that Arista Networks will post 3.83 earnings per share for the current year.

Insider Activity at Arista Networks

In related news, insider Kenneth Duda sold 26,000 shares of the stock in a transaction that occurred 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 transaction, the insider owned 452,400 shares of the company's stock, valued at approximately $83,884,008. This trade represents a 5.43% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible 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 business's stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $208.13, for a total transaction of $119,364,428.17. Following the completion of the transaction, the chief executive officer owned 25,000 shares of the company's stock, valued at approximately $5,203,250. This trade represents a 95.82% 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. In the last three months, insiders have sold 2,380,998 shares of company stock valued at $482,687,801. 2.70% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Arista Networks

Several hedge funds have recently bought and sold shares of the company. William Mack & Associates Inc. acquired a new stake in Arista Networks in the 3rd quarter valued at $27,000. Flagship Wealth Advisors LLC purchased a new stake in shares of Arista Networks in the 3rd quarter valued at $31,000. ABS Investment Management LLC acquired a new position in Arista Networks during the 2nd quarter worth $29,000. ABS Direct Equity Fund LLC purchased a new position in shares of Arista Networks in the 2nd quarter valued at about $29,000. Finally, Balance Wealth Partners LLC acquired a new stake in shares of Arista Networks during the third quarter worth about $35,000. 82.47% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Arista Networks

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.

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