Arista Networks (NYSE:ANET) Stock Price Down 1.6% - Here's Why

Key Points

• Arista Networks' stock price fell by 1.6% to approximately $134.39 due to a significant decline in trading volume, down 79% from its average daily volume.
• Recent analyst reports show a range of ratings for ANET, with 14 analysts$138.07.
• The company's latest earnings report showed a strong performance, with $0.73 EPS, exceeding estimates and a 30.4% year-over-year revenue increase to $2.20 billion.

Arista Networks, Inc. (NYSE:ANET - Get Free Report) shares dropped 1.6% during mid-day trading on Tuesday . The company traded as low as $131.00 and last traded at $134.39. Approximately 2,124,867 shares were traded during mid-day trading, a decline of 79% from the average daily volume of 10,342,914 shares. The stock had previously closed at $136.55.

Analyst Ratings Changes

A number of analysts recently weighed in on ANET shares. Erste Group Bank raised shares of Arista Networks from a "hold" rating to a "buy" rating in a research note on Wednesday, July 23rd. JPMorgan Chase & Co. boosted their price target on shares of Arista Networks from $130.00 to $150.00 and gave the company an "overweight" rating in a research report on Wednesday, August 6th. BNP Paribas lowered shares of Arista Networks from a "strong-buy" rating to a "hold" rating in a report on Wednesday, June 11th. Needham & Company LLC increased their price target on Arista Networks from $130.00 to $155.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Finally, Piper Sandler raised their price target on Arista Networks from $89.00 to $143.00 and gave the company a "neutral" rating in a report on Wednesday, August 6th. Fourteen investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $138.07.

Arista Networks Price Performance

The stock's 50 day moving average is $119.20 and its two-hundred day moving average is $97.57. The firm has a market capitalization of $170.75 billion, a P/E ratio of 53.43, a P/E/G ratio of 3.21 and a beta of 1.49.

Arista Networks (NYSE:ANET - Get Free Report) last released its earnings results on Tuesday, August 5th. The technology company reported $0.73 earnings per share for the quarter, beating the consensus estimate 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 return on equity of 31.05% and a net margin of 40.90%.The company's quarterly revenue was up 30.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.53 earnings per share. 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.

Arista Networks declared that its Board of Directors has initiated a share buyback plan on Tuesday, May 6th that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the technology company to reacquire up to 1.3% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board believes its shares are undervalued.

Insider Activity at Arista Networks

In other Arista Networks news, SVP Kenneth Duda sold 30,000 shares of Arista Networks stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $136.51, for a total transaction of $4,095,300.00. Following the transaction, the senior vice president directly owned 12,976 shares in the company, valued at approximately $1,771,353.76. The trade was a 69.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Jayshree Ullal sold 24,040 shares of the stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $132.77, for a total value of $3,191,790.80. Following the completion of the sale, the chief executive officer owned 9,917 shares of the company's stock, valued at $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 in the last quarter. Corporate insiders own 3.54% of the company's stock.

Institutional Investors Weigh In On Arista Networks

Several institutional investors have recently added to or reduced their stakes in the stock. DSG Capital Advisors LLC bought a new stake in shares of Arista Networks in the fourth quarter valued at about $5,984,000. Ibex Wealth Advisors grew its stake in shares of Arista Networks by 14.4% during the 1st quarter. Ibex Wealth Advisors now owns 58,093 shares of the technology company's stock worth $4,501,000 after acquiring an additional 7,329 shares in the last quarter. Sowell Financial Services LLC acquired a new stake in shares of Arista Networks in the first quarter valued at approximately $629,000. Commonwealth Equity Services LLC boosted its holdings in Arista Networks by 19.8% during the first 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 during the last quarter. Finally, Westfield Capital Management Co. LP acquired a new stake in Arista Networks in the 1st quarter valued at $15,227,000. 82.47% of the stock is owned by 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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