Arista Networks (NYSE:ANET) Upgraded to Strong-Buy at BNP Paribas Exane

Key Points

• BNP Paribas Exane upgraded Arista Networks to “strong buy.” The broader analyst consensus remains “buy,” with an average price target of $235.45.
• Arista reported strong quarterly results, with earnings of $1.02 per share versus the $0.89 consensus estimate and revenue of $3.04 billion, up 37.7% year over year.
• Shares opened at $185.53, while major insiders sold stock worth approximately $740.8 million over the past quarter; institutional investors own 82.47% of the company.

Arista Networks (NYSE:ANET - Get Free Report) was upgraded by equities research analysts at BNP Paribas Exane to a "strong-buy" rating in a note issued to investors on Wednesday, Zacks reports.

Several other equities research analysts have also commented on the stock. Evercore restated an "outperform" rating on shares of Arista Networks in a report on Wednesday, October 7th. Citigroup reiterated a "buy" rating and set a $248.00 price objective (up from $215.00) on shares of Arista Networks in a research note on Thursday, October 8th. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Arista Networks in a research note on Monday, August 31st. They set a "buy" rating and a $220.00 price objective on the stock. Bank of America reissued a "buy" rating and set a $240.00 price objective (up from $200.00) on shares of Arista Networks in a report on Wednesday, August 5th. Finally, Zacks Research downgraded shares of Arista Networks from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 5th. Two 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. According to MarketBeat.com, the company has a consensus rating of "Buy" and a consensus target price of $235.45.

Arista Networks Price Performance

ANET stock opened at $185.53 on Wednesday. The business has a 50-day moving average price of $198.69 and a 200 day moving average price of $174.33. The company has a market capitalization of $234.00 billion, a P/E ratio of 58.53, a PEG ratio of 2.27 and a beta of 1.60. Arista Networks has a 1-year low of $114.52 and a 1-year high of $217.41.

Arista Networks (NYSE:ANET - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The technology company reported $1.02 earnings per share for the quarter, topping analysts' consensus estimates of $0.89 by $0.13. Arista Networks had a net margin of 38.37% and a return on equity of 30.65%. The company had revenue of $3.04 billion during the quarter, compared to analyst estimates of $2.83 billion. During the same period in the prior year, the firm earned $0.73 earnings per share. The firm's revenue for the quarter was up 37.7% compared to the same quarter last year. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. On average, analysts anticipate that Arista Networks will post 3.79 earnings per share for the current fiscal year.

Insider Transactions at Arista Networks

In other Arista Networks news, major shareholder Andreas Bechtolsheim sold 300,000 shares of the stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $203.30, for a total transaction of $60,990,000.00. Following the completion of the sale, the insider directly owned 181,143,048 shares of the company's stock, valued at approximately $36,826,381,658.40. This represents a 0.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jayshree Ullal sold 767,029 shares of the firm's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $201.22, for a total transaction of $154,341,575.38. Following the completion of the sale, the chief executive officer owned 16,387,981 shares in the company, valued at $3,297,589,536.82. This represents a 4.47% decrease in their ownership of the stock. 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 3,627,449 shares of company stock valued at $740,784,723 over the last quarter. 2.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Arista Networks

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Davidson Trust Co. acquired a new stake in Arista Networks in the 3rd quarter worth approximately $3,512,000. Deutsche Bank AG grew its position in Arista Networks by 4.3% during the 2nd quarter. Deutsche Bank AG now owns 9,357,496 shares of the technology company's stock worth $1,589,651,000 after purchasing an additional 388,354 shares during the last quarter. Ferguson Wellman Capital Management Inc. grew its position in Arista Networks by 2,827.9% during the 3rd quarter. Ferguson Wellman Capital Management Inc. now owns 52,381 shares of the technology company's stock worth $10,664,000 after purchasing an additional 50,592 shares during the last quarter. First National Bank of Mount Dora Trust Investment Services acquired a new position in Arista Networks during the 1st quarter valued at approximately $5,279,000. Finally, Whitaker Myers Wealth Managers LTD. increased its stake in Arista Networks by 564.1% during the 2nd quarter. Whitaker Myers Wealth Managers LTD. now owns 16,847 shares of the technology company's stock valued at $2,862,000 after purchasing an additional 14,310 shares in the last quarter. Hedge funds and other institutional investors own 82.47% of the company's stock.

Arista Networks Company Profile

Arista Networks, Inc develops and sells cloud networking solutions for data centers, campus environments and high-performance computing applications. Its products include Ethernet switches, routers, wireless access points and related networking equipment designed to support cloud computing, artificial intelligence, enterprise and service-provider networks.

The company's software portfolio includes Arista EOS, its network operating system, and CloudVision, a platform that helps customers manage, automate and monitor network infrastructure.

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