Arista Networks (NYSE:ANET) Reaches New 1-Year High - Should You Buy?

Key Points

• Arista Networks reached a new 52-week high of $142.50, closing at $140.51 with a trading volume of over 2 million shares.
• Analysts have shown strong support for Arista, with multiple firms raising their price targets to $155.00 and giving it a consensus rating of Moderate Buy.
• The company reported strong quarterly earnings, with $0.73 earnings per share, beating expectations and showing a revenue increase of 30.4% year-over-year.

Arista Networks, Inc. (NYSE:ANET - Get Free Report)'s share price hit a new 52-week high on Thursday . The company traded as high as $142.50 and last traded at $140.51, with a volume of 2001198 shares traded. The stock had previously closed at $137.38.

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. UBS Group upped their price target on shares of Arista Networks from $115.00 to $155.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Needham & Company LLC increased their price objective on shares of Arista Networks from $130.00 to $155.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. The Goldman Sachs Group increased their price objective on shares of Arista Networks from $115.00 to $155.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. BNP Paribas Exane downgraded shares of Arista Networks from an "outperform" rating to a "neutral" rating and set a $106.00 price objective for the company. in a research note on Wednesday, June 11th. Finally, Redburn Atlantic started coverage on shares of Arista Networks in a research note on Wednesday, May 28th. They issued a "buy" rating and a $112.00 price objective for the company. Fourteen analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $138.79.

Arista Networks Price Performance

The company's 50-day moving average price is $120.83 and its two-hundred day moving average price is $98.11. The company has a market capitalization of $176.59 billion, a price-to-earnings ratio of 55.21, a PEG ratio of 3.21 and a beta of 1.50.

Arista Networks (NYSE:ANET - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The technology company reported $0.73 earnings per share for the quarter, topping the consensus estimate of $0.65 by $0.08. Arista Networks had a net margin of 40.90% and a return on equity of 31.05%. The company had revenue of $2.20 billion during the quarter, compared to analysts' expectations of $2.11 billion. During the same period in the prior year, the company posted $0.53 earnings per share. Arista Networks's revenue for the quarter was up 30.4% compared to the same quarter last year. Arista Networks has set its Q3 2025 guidance at EPS. On average, equities research analysts expect that Arista Networks, Inc. will post 2.2 EPS for the current fiscal year.

Insiders Place Their Bets

In other Arista Networks news, SVP Kenneth Duda sold 30,000 shares of the firm's stock in a transaction on Monday, August 18th. The shares were sold at an average price of $136.51, for a total value of $4,095,300.00. Following the completion of the sale, the senior vice president directly owned 12,976 shares in the company, valued at approximately $1,771,353.76. This trade represents a 69.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Charles H. Giancarlo sold 8,000 shares of the firm's stock in a transaction on Friday, August 1st. The stock was sold at an average price of $117.01, for a total transaction of $936,080.00. Following the completion of the sale, the director owned 57,784 shares of the company's stock, valued at $6,761,305.84. The trade was a 12.16% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 5,839,614 shares of company stock worth $724,163,153. 3.54% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Arista Networks

Large investors have recently bought and sold shares of the stock. American Trust lifted its stake in shares of Arista Networks by 49.6% in the second quarter. American Trust now owns 17,671 shares of the technology company's stock valued at $1,808,000 after buying an additional 5,862 shares in the last quarter. Centaurus Financial Inc. lifted its stake in shares of Arista Networks by 5.3% in the second quarter. Centaurus Financial Inc. now owns 12,490 shares of the technology company's stock valued at $1,278,000 after buying an additional 631 shares in the last quarter. Thrivent Financial for Lutherans lifted its stake in shares of Arista Networks by 77.2% in the second quarter. Thrivent Financial for Lutherans now owns 548,356 shares of the technology company's stock valued at $55,909,000 after buying an additional 238,837 shares in the last quarter. MASTERINVEST Kapitalanlage GmbH bought a new position in shares of Arista Networks in the second quarter valued at $4,373,000. Finally, Stance Capital LLC bought a new position in shares of Arista Networks in the second quarter valued at $1,426,000. 82.47% of the stock is currently owned by institutional investors and hedge funds.

About Arista Networks

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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