Arista Networks (NYSE:ANET) Shares Up 1% - Still a Buy?

Key Points

• Arista Networks shares experienced a 1% increase, closing at $141.46, with a significant drop in trading volume, down 82% from the average.
• Recent analyst ratings reflect optimism, with upgrades from firms like JPMorgan and UBS Group raising target prices to as high as $155, while maintaining a consensus rating of "Moderate Buy."
• Insider selling was significant, with CEO Jayshree Ullal selling over 1.7 million shares, reducing her ownership by nearly 24% to 5.7 million shares post-transaction.

Arista Networks, Inc. (NYSE:ANET - Get Free Report)'s share price shot up 1% during trading on Tuesday . The company traded as high as $142.37 and last traded at $141.46. 1,827,078 shares changed hands during mid-day trading, a decline of 82% from the average session volume of 10,273,082 shares. The stock had previously closed at $140.01.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on ANET. Rosenblatt Securities boosted their target price on Arista Networks from $106.00 to $125.00 and gave the company a "neutral" rating in a research report on Wednesday, August 6th. JPMorgan Chase & Co. lifted their price target on Arista Networks from $130.00 to $150.00 and gave the company an "overweight" rating in a research note on Wednesday, August 6th. Evercore ISI set a $150.00 price target on Arista Networks and gave the company an "outperform" rating in a research note on Wednesday, August 6th. KeyCorp lifted their price target on Arista Networks from $115.00 to $145.00 and gave the company an "overweight" rating in a research note on Wednesday, August 6th. Finally, UBS Group boosted their target price on Arista Networks from $115.00 to $155.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Fourteen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $138.79.

Arista Networks Stock Up 0.8%

The firm has a 50 day moving average of $123.24 and a 200 day moving average of $98.78. The firm has a market cap of $177.32 billion, a PE ratio of 55.56, a P/E/G ratio of 3.36 and a beta of 1.49.

Arista Networks (NYSE:ANET - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The technology company reported $0.73 EPS for the quarter, beating the consensus estimate of $0.65 by $0.08. The business 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%.Arista Networks's revenue for the quarter was up 30.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.53 earnings per share. Arista Networks has set its Q3 2025 guidance at EPS. On average, research analysts anticipate that Arista Networks, Inc. will post 2.2 EPS for the current year.

Insider Buying and Selling

In related news, CEO Jayshree Ullal sold 1,785,165 shares of the stock in a transaction on Wednesday, August 6th. The stock was sold at an average price of $136.22, for a total value of $243,175,176.30. Following the transaction, the chief executive officer owned 5,698,074 shares of the company's stock, valued at $776,191,640.28. This represents a 23.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders sold a total of 5,839,614 shares of company stock valued at $724,163,153 over the last quarter. 3.54% of the stock is owned by corporate insiders.

Institutional Trading of Arista Networks

Several institutional investors have recently added to or reduced their stakes in ANET. Bare Financial Services Inc boosted its position in Arista Networks by 2,118.2% during the second quarter. Bare Financial Services Inc now owns 244 shares of the technology company's stock valued at $25,000 after buying an additional 233 shares during the period. HighMark Wealth Management LLC boosted its holdings in shares of Arista Networks by 179.7% during the first quarter. HighMark Wealth Management LLC now owns 358 shares of the technology company's stock worth $28,000 after purchasing an additional 230 shares during the period. Cloud Capital Management LLC purchased a new stake in shares of Arista Networks during the first quarter worth about $30,000. Saudi Central Bank purchased a new stake in shares of Arista Networks during the first quarter worth about $33,000. Finally, REAP Financial Group LLC boosted its holdings in shares of Arista Networks by 108.0% during the second quarter. REAP Financial Group LLC now owns 337 shares of the technology company's stock worth $34,000 after purchasing an additional 175 shares during the period. 82.47% of the stock is currently 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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