Arista Networks (NYSE:ANET) Shares Down 2% - Here's What Happened

Key Points

• Arista Networks' stock declined by 2% on Friday, trading at a low of $139.24 and closing at $143.10, with a trading volume that was 37% below average.
• The company received mixed ratings from analysts, with target prices ranging between $125.00 and $160.00 and a consensus rating of Moderate Buy.
• Arista reported a 30.4% revenue increase year-over-year, with an earnings per share (EPS) of $0.73, surpassing estimates by $0.08.

Arista Networks, Inc. (NYSE:ANET - Get Free Report)'s stock price was down 2% during trading on Friday . The company traded as low as $139.24 and last traded at $143.10. Approximately 6,461,853 shares changed hands during trading, a decline of 37% from the average daily volume of 10,219,252 shares. The stock had previously closed at $146.01.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on ANET shares. Rosenblatt Securities raised their target price on Arista Networks from $125.00 to $140.00 and gave the company a "neutral" rating in a research report on Friday, September 12th. Zacks Research cut Arista Networks from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 6th. Erste Group Bank upgraded Arista Networks from a "hold" rating to a "buy" rating in a research report on Wednesday, July 23rd. Needham & Company LLC raised their target price on Arista Networks from $155.00 to $160.00 and gave the company a "buy" rating in a research report on Tuesday, September 16th. Finally, Piper Sandler raised their target price on Arista Networks from $89.00 to $143.00 and gave the company a "neutral" rating in a research report on Wednesday, August 6th. Nineteen analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, Arista Networks has a consensus rating of "Moderate Buy" and an average target price of $163.94.

Arista Networks Trading Down 2.0%

The company has a market capitalization of $179.86 billion, a price-to-earnings ratio of 56.28, a PEG ratio of 2.99 and a beta of 1.47. The company has a fifty day moving average of $142.03 and a 200-day moving average of $110.49.

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 (EPS) for the quarter, topping the consensus estimate of $0.65 by $0.08. Arista Networks had a return on equity of 31.05% and a net margin of 40.90%.The company had revenue of $2.20 billion for the quarter, compared to analysts' expectations of $2.11 billion. During the same period in the previous year, the firm posted $0.53 EPS. Arista Networks's revenue was up 30.4% compared to the same quarter last year. Arista Networks has set its Q3 2025 guidance at EPS. As a group, equities research analysts expect that Arista Networks, Inc. will post 2.2 EPS for the current year.

Insiders Place Their Bets

In other Arista Networks news, CEO Jayshree Ullal sold 1,785,165 shares of the firm's stock in a transaction that occurred on Wednesday, August 6th. The shares were sold at an average price of $136.22, for a total value of $243,175,176.30. Following the transaction, the chief executive officer directly owned 5,698,074 shares of the company's stock, valued at $776,191,640.28. This trade represents a 23.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Over the last 90 days, insiders have sold 6,622,904 shares of company stock valued at $887,794,521. Company insiders own 3.39% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. AdvisorNet Financial Inc grew its position in Arista Networks by 56.7% during the 3rd quarter. AdvisorNet Financial Inc now owns 199 shares of the technology company's stock worth $29,000 after purchasing an additional 72 shares in the last quarter. Fragasso Financial Advisors Inc boosted its stake in shares of Arista Networks by 1.8% during the 3rd quarter. Fragasso Financial Advisors Inc now owns 4,237 shares of the technology company's stock valued at $616,000 after buying an additional 76 shares during the period. Stablepoint Partners LLC boosted its stake in shares of Arista Networks by 0.8% during the 2nd quarter. Stablepoint Partners LLC now owns 9,406 shares of the technology company's stock valued at $962,000 after buying an additional 77 shares during the period. Glenview Trust co boosted its stake in shares of Arista Networks by 2.5% during the 2nd quarter. Glenview Trust co now owns 3,502 shares of the technology company's stock valued at $358,000 after buying an additional 84 shares during the period. Finally, Telos Capital Management Inc. boosted its stake in shares of Arista Networks by 1.0% during the 2nd quarter. Telos Capital Management Inc. now owns 9,260 shares of the technology company's stock valued at $947,000 after buying an additional 88 shares during the period. 82.47% of the stock is owned by hedge funds and other institutional investors.

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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