Arista Networks (NYSE:ANET) Trading Down 2.7% on Insider Selling

Key Points

• Arista Networks' stock price dropped 2.7% after insider Kenneth Duda sold a total of 56,000 shares at average prices around $141.80.
• Analysts have mixed views on the stock, with Evercore ISI and JPMorgan Chase raising their price targets to $175.00, while BNP Paribas downgraded it to a "neutral" rating with a $106.00 target.
• The company reported impressive earnings, with a 30.4% year-over-year revenue increase and EPS of $0.73, exceeding analysts' expectations of $0.65.

Arista Networks, Inc. (NYSE:ANET - Get Free Report) shares dropped 2.7% on Monday after an insider sold shares in the company. The company traded as low as $145.05 and last traded at $145.51. Approximately 8,471,637 shares changed hands during mid-day trading, a decline of 19% from the average daily volume of 10,420,396 shares. The stock had previously closed at $149.61.

Specifically, insider Kenneth Duda sold 26,000 shares of the firm's stock in a transaction on Wednesday, September 17th. The stock was sold at an average price of $141.80, for a total value of $3,686,800.00. Following the completion of the sale, the insider owned 562,400 shares of the company's stock, valued at $79,748,320. This trade represents a 4.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Kenneth Duda sold 30,000 shares of the stock in a transaction on Wednesday, September 17th. The stock was sold at an average price of $141.79, for a total value of $4,253,700.00. Following the completion of the transaction, the insider owned 12,976 shares of the company's stock, valued at approximately $1,839,867.04. This trade represents a 69.81% decrease in their position. The disclosure for this sale can be found here.

Wall Street Analysts Forecast Growth

ANET has been the subject of a number of research reports. Wells Fargo & Company increased their price objective on Arista Networks from $150.00 to $175.00 and gave the stock an "overweight" rating in a report on Friday, September 12th. Redburn Atlantic initiated coverage on Arista Networks in a report on Wednesday, May 28th. They issued a "buy" rating and a $112.00 price objective for the company. Rosenblatt Securities raised their price target on Arista Networks from $125.00 to $140.00 and gave the company a "neutral" rating in a report on Friday, September 12th. UBS Group raised their price target on Arista Networks from $115.00 to $155.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. Finally, Needham & Company LLC raised their price target on Arista Networks from $155.00 to $160.00 and gave the company a "buy" rating in a report on Tuesday, September 16th. Sixteen investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $157.88.

Arista Networks Trading Up 0.0%

The firm has a fifty day moving average of $131.59 and a 200 day moving average of $102.73. The company has a market capitalization of $182.80 billion, a P/E ratio of 57.26, a P/E/G ratio of 3.12 and a beta of 1.49.

Arista Networks (NYSE:ANET - Get Free Report) last announced its earnings results 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. The business had revenue of $2.20 billion for the quarter, compared to analysts' expectations of $2.11 billion. Arista Networks had a return on equity of 31.05% and a net margin of 40.90%.The business's revenue for the quarter was up 30.4% on a year-over-year basis. During the same period last year, the firm posted $0.53 earnings per share. Arista Networks has set its Q3 2025 guidance at EPS. Sell-side analysts anticipate that Arista Networks, Inc. will post 2.2 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of ANET. Nuveen LLC purchased a new position in Arista Networks in the first quarter worth about $933,626,000. Norges Bank purchased a new position in Arista Networks in the second quarter worth about $1,228,177,000. AQR Capital Management LLC boosted its position in Arista Networks by 153.8% in the first quarter. AQR Capital Management LLC now owns 7,719,809 shares of the technology company's stock worth $584,119,000 after purchasing an additional 4,678,372 shares during the last quarter. Nordea Investment Management AB boosted its position in Arista Networks by 193.3% in the second quarter. Nordea Investment Management AB now owns 7,065,054 shares of the technology company's stock worth $721,342,000 after purchasing an additional 4,656,021 shares during the last quarter. Finally, Goldman Sachs Group Inc. boosted its position in Arista Networks by 37.3% in the first quarter. Goldman Sachs Group Inc. now owns 9,552,484 shares of the technology company's stock worth $740,126,000 after purchasing an additional 2,594,184 shares during the last quarter. 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.