Arista Networks, Inc. (NYSE:ANET) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Arista Networks has received a consensus recommendation of "Moderate Buy" from 19 analysts, with 14 giving it a buy rating and 5 recommending a hold.
• The stock's average 12-month price target is $138.07, indicating significant growth potential from its current trading values.
• Insider transactions show significant sales by executives, including a sale of 192,979 shares by CEO Jayshree Ullal, representing a 3.32% decrease in their position.

Arista Networks, Inc. (NYSE:ANET - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the nineteen analysts that are currently covering the company, Marketbeat Ratings reports. Five investment analysts have rated the stock with a hold recommendation and fourteen have assigned a buy recommendation to the company. The average 12-month price target among brokers that have covered the stock in the last year is $138.0714.

A number of brokerages have weighed in on ANET. KGI Securities downgraded Arista Networks to a "neutral" rating in a report on Wednesday, May 7th. JPMorgan Chase & Co. raised their target price on Arista Networks from $130.00 to $150.00 and gave the company an "overweight" rating in a report on Wednesday, August 6th. BNP Paribas Exane downgraded Arista Networks from an "outperform" rating to a "neutral" rating and set a $106.00 target price on the stock. in a report on Wednesday, June 11th. Wedbush began coverage on Arista Networks in a report on Wednesday, May 28th. They issued an "outperform" rating on the stock. Finally, Redburn Atlantic began coverage on Arista Networks in a report on Wednesday, May 28th. They issued a "buy" rating and a $112.00 target price on the stock.

Insider Activity at Arista Networks

In related news, SVP Kenneth Duda sold 30,000 shares of the firm's stock in a transaction on Monday, August 18th. The stock was sold at an average price of $136.51, for a total transaction of $4,095,300.00. Following the sale, the senior vice president owned 12,976 shares of the company's stock, valued at $1,771,353.76. This trade represents a 69.81% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Jayshree Ullal sold 192,979 shares of the firm's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $139.67, for a total value of $26,953,376.93. Following the sale, the chief executive officer directly owned 5,623,721 shares in the company, valued at approximately $785,465,112.07. This trade represents a 3.32% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 5,823,574 shares of company stock valued at $721,676,802 in the last 90 days. 3.54% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. DSG Capital Advisors LLC acquired a new position in Arista Networks during the 4th quarter worth about $5,984,000. Ibex Wealth Advisors lifted its holdings in Arista Networks by 14.4% during the 1st quarter. Ibex Wealth Advisors now owns 58,093 shares of the technology company's stock worth $4,501,000 after buying an additional 7,329 shares during the period. Sowell Financial Services LLC acquired a new position in Arista Networks during the 1st quarter worth about $629,000. Commonwealth Equity Services LLC lifted its holdings in Arista Networks by 19.8% during the 1st quarter. Commonwealth Equity Services LLC now owns 613,309 shares of the technology company's stock worth $47,519,000 after buying an additional 101,162 shares during the period. Finally, Westfield Capital Management Co. LP bought a new position in shares of Arista Networks in the 1st quarter worth about $15,227,000. 82.47% of the stock is owned by institutional investors and hedge funds.

Arista Networks Trading Down 0.1%

Shares of NYSE ANET opened at $133.06 on Tuesday. The firm has a market cap of $167.24 billion, a P/E ratio of 52.33, a price-to-earnings-growth ratio of 3.13 and a beta of 1.37. Arista Networks has a 1-year low of $59.43 and a 1-year high of $141.99. The business's 50 day moving average is $114.63 and its 200-day moving average is $96.78.

Arista Networks (NYSE:ANET - Get Free Report) last issued its earnings results on Tuesday, August 5th. The technology company reported $0.73 earnings per share for the quarter, beating analysts' consensus estimates of $0.65 by $0.08. The firm had revenue of $2.20 billion for the quarter, compared to the consensus estimate of $2.11 billion. Arista Networks had a return on equity of 31.05% and a net margin of 40.90%.The company's revenue was up 30.4% compared to the same quarter last year. During the same quarter last year, the business posted $0.53 EPS. Arista Networks has set its Q3 2025 guidance at EPS. Analysts forecast that Arista Networks will post 2.2 EPS for the current year.

Arista Networks announced that its board has authorized a stock buyback plan on Tuesday, May 6th that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the technology company to reacquire up to 1.3% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's leadership believes its stock is undervalued.

Arista Networks Company Profile

Arista Networks, Inc engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for data center, campus, and routing environments in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Its cloud networking solutions consist of Extensible Operating System (EOS), a publish-subscribe state-sharing networking operating system offered in combination with a set of network applications.

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