Arista Networks (NYSE:ANET) Stock Price Down 2.9% - Time to Sell?

Key Points

• Arista Networks' stock price decreased by 2.9%, closing at $145.12, with a significant drop in trading volume.
• Several brokerages have recently raised their price targets for Arista Networks, with Wolfe Research and Melius Research setting targets of $185.00, indicating strong analyst confidence.
• Insider trading activity shows substantial sales, including CEO Jayshree Ullal disposing of over 1.24 million shares, reflecting a notable decrease in insider ownership.

Shares of Arista Networks, Inc. (NYSE:ANET - Get Free Report) were down 2.9% during trading on Tuesday . The company traded as low as $143.28 and last traded at $145.12. Approximately 7,327,157 shares were traded during trading, a decline of 28% from the average daily volume of 10,227,453 shares. The stock had previously closed at $149.50.

Analysts Set New Price Targets

A number of brokerages recently weighed in on ANET. Wolfe Research boosted their price target on shares of Arista Networks from $160.00 to $185.00 and gave the company an "outperform" rating in a research report on Friday, September 12th. William Blair reissued an "outperform" rating on shares of Arista Networks in a report on Friday, September 12th. The Goldman Sachs Group lifted their target price on shares of Arista Networks from $155.00 to $175.00 and gave the stock a "buy" rating in a research report on Friday, September 12th. Melius Research raised their target price on shares of Arista Networks from $160.00 to $185.00 and gave the stock a "buy" rating in a research report on Friday, September 12th. Finally, Wells Fargo & Company boosted their price objective on Arista Networks from $150.00 to $175.00 and gave the stock an "overweight" rating in a research note on Friday, September 12th. Nineteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $162.00.

Arista Networks Price Performance

The stock has a market capitalization of $182.40 billion, a price-to-earnings ratio of 57.08, a PEG ratio of 3.03 and a beta of 1.47. The stock's 50 day simple moving average is $138.18 and its 200-day simple moving average is $107.14.

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

Insider Buying and Selling

In other Arista Networks news, insider Kenneth Duda sold 30,000 shares of the firm's stock in a transaction dated Wednesday, September 17th. The stock was sold at an average price of $141.79, for a total transaction of $4,253,700.00. Following the transaction, the insider owned 12,976 shares in the company, valued at approximately $1,839,867.04. This trade represents a 69.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Jayshree Ullal sold 1,247,688 shares of Arista Networks stock in a transaction that occurred on Wednesday, September 10th. The shares were sold at an average price of $148.53, for a total transaction of $185,319,098.64. Following the completion of the transaction, the chief executive officer directly owned 5,383,207 shares in the company, valued at approximately $799,567,735.71. The trade was a 18.82% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 6,678,904 shares of company stock valued at $894,021,161 over the last ninety days. Insiders own 3.39% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of ANET. Bare Financial Services Inc lifted its holdings in Arista Networks by 2,118.2% in 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 grew its stake in 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 bought a new stake in Arista Networks in the first quarter worth approximately $30,000. Saudi Central Bank bought a new stake in Arista Networks in the first quarter worth approximately $33,000. Finally, REAP Financial Group LLC lifted its stake in Arista Networks by 108.0% in the second quarter. REAP Financial Group LLC now owns 337 shares of the technology company's stock valued at $34,000 after buying an additional 175 shares during the period. 82.47% of the stock is currently 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.