Arista Networks (NYSE:ANET) Sets New 1-Year High After Strong Earnings

Key Points

• Arista Networks reached a new 52-week high of $137.93 after reporting earnings per share (EPS) of $0.73, beating expectations of $0.65.
• The company announced a $1.50 billion stock repurchase program, indicating confidence in its stock valuation amidst strong earnings growth.
• Research analysts have shown bullish sentiment, with most rating Arista as a "Moderate Buy" and raising price targets, primarily influenced by its robust quarterly performance and growth prospects.

Shares of Arista Networks, Inc. (NYSE:ANET - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $137.93 and last traded at $136.65, with a volume of 7625508 shares trading hands. The stock had previously closed at $118.12.

The technology company reported $0.73 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.65 by $0.08. Arista Networks had a net margin of 40.72% and a return on equity of 30.48%. The firm had revenue of $2.20 billion during the quarter, compared to analysts' expectations of $2.11 billion. During the same period last year, the company earned $0.53 earnings per share. The business's revenue was up 30.4% on a year-over-year basis.

Arista Networks declared that its board has authorized a stock repurchase program on Tuesday, May 6th that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the technology company to purchase up to 1.3% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's board believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on ANET shares. Citigroup boosted their price target on shares of Arista Networks from $112.00 to $123.00 and gave the stock a "buy" rating in a report on Friday, July 11th. Wolfe Research initiated coverage on shares of Arista Networks in a research note on Tuesday, July 8th. They issued an "outperform" rating on the stock. Erste Group Bank upgraded shares of Arista Networks from a "hold" rating to a "buy" rating in a research note on Wednesday, July 23rd. Rosenblatt Securities boosted their target price on shares of Arista Networks from $85.00 to $87.00 and gave the company a "neutral" rating in a research note on Wednesday, May 7th. Finally, JPMorgan Chase & Co. boosted their target price on shares of Arista Networks from $110.00 to $130.00 and gave the company an "overweight" rating in a research note on Thursday, July 17th. Six analysts have rated the stock with a hold rating and fourteen have given a buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $120.79.

Insider Buying and Selling at Arista Networks

In related news, Director Kelly Bodnar Battles sold 864 shares of the company's stock in a transaction that occurred on Friday, July 25th. The shares were sold at an average price of $114.68, for a total transaction of $99,083.52. Following the sale, the director owned 7,460 shares of the company's stock, valued at approximately $855,512.80. This represents a 10.38% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Charles H. Giancarlo sold 8,000 shares of the company's stock in a transaction that occurred 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 sale, the director directly owned 57,784 shares in the company, valued at $6,761,305.84. This trade represents a 12.16% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 3,443,742 shares of company stock worth $395,523,885. 3.54% of the stock is currently owned by company insiders.

Institutional Trading of Arista Networks

Hedge funds and other institutional investors have recently bought and sold shares of the company. DSG Capital Advisors LLC purchased a new stake in shares of Arista Networks in the 4th quarter valued at $5,984,000. Ibex Wealth Advisors raised its holdings in Arista Networks by 14.4% in the 1st quarter. Ibex Wealth Advisors now owns 58,093 shares of the technology company's stock worth $4,501,000 after purchasing an additional 7,329 shares in the last quarter. Sowell Financial Services LLC bought a new position in Arista Networks in the 1st quarter worth $629,000. Commonwealth Equity Services LLC raised its holdings in Arista Networks by 19.8% in the 1st quarter. Commonwealth Equity Services LLC now owns 613,309 shares of the technology company's stock worth $47,519,000 after purchasing an additional 101,162 shares in the last quarter. Finally, Bank of Montreal Can raised its holdings in Arista Networks by 275.3% in the 4th quarter. Bank of Montreal Can now owns 1,490,700 shares of the technology company's stock worth $164,767,000 after purchasing an additional 1,093,472 shares in the last quarter. Institutional investors own 82.47% of the company's stock.

Arista Networks Trading Up 16.7%

The firm has a market capitalization of $173.06 billion, a P/E ratio of 58.33, a price-to-earnings-growth ratio of 3.50 and a beta of 1.37. The company's fifty day simple moving average is $102.57 and its 200 day simple moving average is $94.98.

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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