Arista Networks (NYSE:ANET) Stock Price Down 3.1% - Here's Why

Key Points

• Arista Networks' stock price dropped 3.1% to $128.64, with a trading volume significantly lower than average, indicating decreased investor activity.
• Analyst rating changes include KGI Securities downgrading to a "neutral" rating, while Piper Sandler and JPMorgan Chase upgraded their target prices significantly.
• CEO Jayshree Ullal sold 1.78 million shares at $136.22 each, reducing her ownership by nearly 24%, which may signal confidence or concerns about future performance.

Arista Networks, Inc. (NYSE:ANET - Get Free Report)'s stock price fell 3.1% during trading on Wednesday . The company traded as low as $127.58 and last traded at $128.64. 2,607,073 shares changed hands during mid-day trading, a decline of 75% from the average session volume of 10,502,326 shares. The stock had previously closed at $132.78.

Analyst Ratings Changes

A number of research firms have commented on ANET. KGI Securities lowered shares of Arista Networks to a "neutral" rating in a research report on Wednesday, May 7th. Piper Sandler increased their target price on Arista Networks from $89.00 to $143.00 and gave the stock a "neutral" rating in a report on Wednesday, August 6th. Redburn Atlantic assumed coverage on Arista Networks in a report on Wednesday, May 28th. They set a "buy" rating and a $112.00 target price on the stock. Morgan Stanley increased their target price on Arista Networks from $120.00 to $125.00 and gave the stock an "overweight" rating in a report on Wednesday, August 6th. Finally, JPMorgan Chase & Co. increased their target price on Arista Networks from $130.00 to $150.00 and gave the stock an "overweight" 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. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $138.07.

Arista Networks Price Performance

The firm has a market cap of $164.83 billion, a price-to-earnings ratio of 51.62, a price-to-earnings-growth ratio of 3.24 and a beta of 1.37. The firm has a 50 day moving average price of $111.58 and a 200-day moving average price of $96.41.

Arista Networks (NYSE:ANET - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The technology company reported $0.73 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.65 by $0.08. Arista Networks had a return on equity of 31.05% and a net margin of 40.90%.The business had revenue of $2.20 billion for the quarter, compared to analyst estimates of $2.11 billion. During the same quarter in the prior year, the firm posted $0.53 earnings per share. The firm'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. On average, sell-side analysts expect that Arista Networks, Inc. will post 2.2 EPS for the current fiscal year.

Arista Networks declared that its board has authorized a stock repurchase plan on Tuesday, May 6th that authorizes the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the technology company to buy up to 1.3% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In other Arista Networks news, CEO Jayshree Ullal sold 1,785,165 shares of the stock in a transaction dated 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 approximately $776,191,640.28. This represents a 23.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders sold a total of 5,767,574 shares of company stock valued at $714,032,242 over the last quarter. Corporate insiders own 3.54% of the company's stock.

Institutional Investors Weigh In On Arista Networks

Large investors have recently modified their holdings of the business. Bare Financial Services Inc increased its holdings in shares of Arista Networks by 2,118.2% in the second quarter. Bare Financial Services Inc now owns 244 shares of the technology company's stock worth $25,000 after acquiring an additional 233 shares in the last quarter. Quarry LP grew its holdings in shares of Arista Networks by 381.5% during the fourth quarter. Quarry LP now owns 260 shares of the technology company's stock worth $29,000 after buying an additional 206 shares in the last quarter. Dunhill Financial LLC grew its holdings in shares of Arista Networks by 415.7% during the fourth quarter. Dunhill Financial LLC now owns 263 shares of the technology company's stock worth $29,000 after buying an additional 212 shares in the last quarter. McIlrath & Eck LLC bought a new position in shares of Arista Networks during the fourth quarter worth about $35,000. Finally, REAP Financial Group LLC grew 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 buying an additional 175 shares in the last quarter. 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.

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