Arista Networks (NYSE:ANET) Shares Up 2.6% - Still a Buy?

Key Points

• Arista Networks (NYSE:ANET) shares increased by 2.6%, closing at $140.99, with significant trading volume dropping by 70% from average levels.
• Wall Street analysts have raised their price targets for Arista Networks, with Goldman Sachs increasing it from $115.00 to $155.00, and Barclays from $119.00 to $151.00, indicating strong confidence in the stock.
• The company reported $0.73 earnings per share for the last quarter, exceeding expectations and marking a 30.4% revenue growth year-over-year, reaching $2.20 billion.

Arista Networks, Inc. (NYSE:ANET - Get Free Report) shares shot up 2.6% during trading on Thursday . The stock traded as high as $142.50 and last traded at $140.99. 3,135,760 shares traded hands during mid-day trading, a decline of 70% from the average session volume of 10,308,663 shares. The stock had previously closed at $137.38.

Wall Street Analysts Forecast Growth

ANET has been the topic of several analyst reports. The Goldman Sachs Group boosted their price target on shares of Arista Networks from $115.00 to $155.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. JPMorgan Chase & Co. upped their price target on shares of Arista Networks from $130.00 to $150.00 and gave the company an "overweight" rating in a research note on Wednesday, August 6th. Redburn Atlantic began coverage on shares of Arista Networks in a research report on Wednesday, May 28th. They set a "buy" rating and a $112.00 target price on the stock. Barclays restated an "overweight" rating and set a $151.00 target price (up previously from $119.00) on shares of Arista Networks in a research report on Thursday, August 7th. Finally, Erste Group Bank raised shares of Arista Networks from a "hold" rating to a "buy" rating in a report on Wednesday, July 23rd. Fourteen equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, Arista Networks presently has an average rating of "Moderate Buy" and a consensus target price of $138.79.

Arista Networks Stock Up 2.8%

The company's 50 day moving average price is $120.83 and its 200-day moving average price is $98.11. The stock has a market cap of $177.49 billion, a P/E ratio of 55.54, a P/E/G 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. Equities research analysts anticipate that Arista Networks, Inc. will post 2.2 earnings per share for the current year.

Insider Transactions at Arista Networks

In other news, SVP Kenneth Duda sold 30,000 shares of the stock in a transaction on Monday, August 18th. The shares were sold at an average price of $136.51, for a total transaction 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 $1,771,353.76. This represents a 69.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Jayshree Ullal sold 24,040 shares of the stock in a transaction on Monday, August 25th. The stock was sold at an average price of $132.77, for a total transaction of $3,191,790.80. Following the sale, the chief executive officer owned 9,917 shares of the company's stock, valued at approximately $1,316,680.09. This trade represents a 70.80% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 5,839,614 shares of company stock worth $724,163,153 over the last three months. 3.54% of the stock is owned by company insiders.

Institutional Investors Weigh In On Arista Networks

A number of large investors have recently bought and sold shares of the stock. Stablepoint Partners LLC increased its holdings in Arista Networks by 0.8% during the 2nd quarter. Stablepoint Partners LLC now owns 9,406 shares of the technology company's stock worth $962,000 after acquiring an additional 77 shares during the period. Glenview Trust co grew its stake in Arista Networks by 2.5% in the 2nd quarter. Glenview Trust co now owns 3,502 shares of the technology company's stock worth $358,000 after buying an additional 84 shares in the last quarter. Telos Capital Management Inc. grew its stake in Arista Networks by 1.0% in the 2nd quarter. Telos Capital Management Inc. now owns 9,260 shares of the technology company's stock worth $947,000 after buying an additional 88 shares in the last quarter. Wealthcare Advisory Partners LLC boosted its stake in shares of Arista Networks by 1.6% in the 2nd quarter. Wealthcare Advisory Partners LLC now owns 6,038 shares of the technology company's stock valued at $618,000 after purchasing an additional 95 shares in the last quarter. Finally, Putney Financial Group LLC boosted its stake in shares of Arista Networks by 0.7% in the 2nd quarter. Putney Financial Group LLC now owns 14,139 shares of the technology company's stock valued at $1,447,000 after purchasing an additional 95 shares in the last quarter. 82.47% of the stock is currently owned by institutional investors and hedge funds.

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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