Arista Networks (NYSE:ANET) Shares Down 4.3% - Time to Sell?

Key Points

• Arista Networks' shares fell by 4.3% to $147.45 during mid-day trading, with trading volume increasing by 38% compared to the average volume.
• Equities analysts have issued a series of price target increases, with UBS raising theirs from $115 to $155, indicating a strong market sentiment with a consensus rating of "Moderate Buy".
• CEO Jayshree Ullal sold over 1.7 million shares recently, marking a 23.86% decrease in her ownership, while insiders have sold nearly $894 million in shares over the last 90 days.

Arista Networks, Inc. (NYSE:ANET - Get Free Report) traded down 4.3% during mid-day trading on Monday . The stock traded as low as $145.09 and last traded at $147.45. 14,143,876 shares traded hands during mid-day trading, an increase of 38% from the average session volume of 10,245,058 shares. The stock had previously closed at $154.10.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the company. UBS Group upped their target price on Arista Networks from $115.00 to $155.00 and gave the company a "buy" rating in a research report on Wednesday, August 6th. Barclays increased their price target on Arista Networks from $151.00 to $179.00 and gave the stock an "overweight" rating in a research report on Friday, September 12th. Evercore ISI increased their price target on Arista Networks from $150.00 to $175.00 and gave the stock an "outperform" rating in a research report on Friday, September 12th. Melius Research increased their price target on Arista Networks from $160.00 to $185.00 and gave the stock a "buy" rating in a research report on Friday, September 12th. Finally, Morgan Stanley set a $171.00 price target on Arista Networks and gave the stock an "overweight" rating in a research report on Friday. Nineteen equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $163.94.

Arista Networks Stock Performance

The stock has a market capitalization of $185.32 billion, a PE ratio of 57.99, a price-to-earnings-growth ratio of 3.21 and a beta of 1.47. The stock's 50 day moving average is $140.85 and its two-hundred day moving average is $109.10.

Arista Networks (NYSE:ANET - Get Free Report) last issued its quarterly 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 analyst estimates of $2.11 billion. Arista Networks had a net margin of 40.90% and a return on equity of 31.05%. Arista Networks's quarterly revenue was up 30.4% compared to the same quarter last year. During the same period last year, the company posted $0.53 EPS. Arista Networks has set its Q3 2025 guidance at EPS. Equities research analysts expect that Arista Networks, Inc. will post 2.2 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Jayshree Ullal sold 1,785,165 shares of the firm's stock in a transaction dated 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 approximately $776,191,640.28. This trade represents a 23.86% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Over the last 90 days, insiders have sold 6,678,904 shares of company stock valued at $894,021,161. Company insiders own 3.39% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its stake in Arista Networks by 1.2% in the 2nd quarter. Vanguard Group Inc. now owns 98,993,100 shares of the technology company's stock worth $10,127,984,000 after purchasing an additional 1,136,167 shares in the last quarter. Cresset Asset Management LLC lifted its stake in Arista Networks by 1.0% in the 2nd quarter. Cresset Asset Management LLC now owns 26,374,373 shares of the technology company's stock worth $2,698,362,000 after purchasing an additional 263,272 shares in the last quarter. Geode Capital Management LLC lifted its stake in Arista Networks by 0.5% in the 2nd quarter. Geode Capital Management LLC now owns 25,576,483 shares of the technology company's stock worth $2,606,694,000 after purchasing an additional 128,977 shares in the last quarter. Alliancebernstein L.P. lifted its stake in Arista Networks by 9.0% in the 1st quarter. Alliancebernstein L.P. now owns 22,959,214 shares of the technology company's stock worth $1,778,880,000 after purchasing an additional 1,889,198 shares in the last quarter. Finally, Nuveen LLC purchased a new position in Arista Networks in the 1st quarter worth approximately $933,626,000. 82.47% of the stock is owned by hedge funds and other institutional investors.

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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