Arista Networks (NYSE:ANET) Stock Price Expected to Rise, Melius Research Analyst Says

Key Points

• Melius Research has raised its target price for Arista Networks from $160 to $185, indicating a potential upside of 29.94% from current levels, and has assigned a "buy" rating on the stock.
• Various analysts, including Evercore ISI and Wolfe Research, have also increased their price targets, contributing to a consensus target price of $157.56 and a "Moderate Buy" rating for the stock.
• Insider transactions reveal that CEO Jayshree Ullal sold over 1.7 million shares recently, decreasing her ownership by 23.86%, while institutional investors control 82.47% of Arista Networks' stock.

Arista Networks (NYSE:ANET - Get Free Report) had its target price increased by equities researchers at Melius Research from $160.00 to $185.00 in a research note issued to investors on Friday,Benzinga reports. The firm presently has a "buy" rating on the technology company's stock. Melius Research's target price suggests a potential upside of 29.94% from the company's current price.

Other equities research analysts have also issued reports about the stock. Evercore ISI increased their target price on shares of Arista Networks from $150.00 to $175.00 and gave the stock an "outperform" rating in a report on Friday. William Blair reiterated an "outperform" rating on shares of Arista Networks in a research report on Friday. Wolfe Research increased their target price on Arista Networks from $160.00 to $185.00 and gave the company an "outperform" rating in a research report on Friday. Piper Sandler raised their price target on Arista Networks from $89.00 to $143.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 6th. Finally, Needham & Company LLC raised 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. Sixteen equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, Arista Networks has a consensus rating of "Moderate Buy" and a consensus target price of $157.56.

Arista Networks Stock Performance

Shares of NYSE ANET traded down $10.67 during midday trading on Friday, hitting $142.37. 11,915,791 shares of the company's stock traded hands, compared to its average volume of 10,380,111. Arista Networks has a 1 year low of $59.43 and a 1 year high of $156.32. The stock has a market capitalization of $178.94 billion, a price-to-earnings ratio of 56.00, a price-to-earnings-growth ratio of 3.54 and a beta of 1.50. The firm has a fifty day moving average of $126.11 and a 200 day moving average of $99.86.

Arista Networks (NYSE:ANET - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The technology company reported $0.73 EPS for the quarter, beating 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 firm had revenue of $2.20 billion during the quarter, compared to analyst estimates of $2.11 billion. During the same quarter in the prior year, the firm earned $0.53 EPS. The business'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, equities analysts anticipate that Arista Networks will post 2.2 earnings per share for the current year.

Insider Transactions at Arista Networks

In other Arista Networks news, CEO Jayshree Ullal sold 1,785,165 shares of Arista Networks 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 in the company, valued at $776,191,640.28. The trade was a 23.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders sold a total of 6,334,926 shares of company stock valued at $795,392,998 in the last 90 days. 3.39% of the stock is owned by insiders.

Institutional Investors Weigh In On Arista Networks

A number of large investors have recently modified their holdings of the business. Vanguard Group Inc. boosted its position in Arista Networks by 1.2% in the second quarter. Vanguard Group Inc. now owns 98,993,100 shares of the technology company's stock valued at $10,127,984,000 after buying an additional 1,136,167 shares during the last quarter. Cresset Asset Management LLC boosted its position in Arista Networks by 1.0% in the second quarter. Cresset Asset Management LLC now owns 26,374,373 shares of the technology company's stock valued at $2,698,362,000 after buying an additional 263,272 shares during the last quarter. Geode Capital Management LLC boosted its position in Arista Networks by 0.5% in the second quarter. Geode Capital Management LLC now owns 25,576,483 shares of the technology company's stock valued at $2,606,694,000 after buying an additional 128,977 shares during the last quarter. Alliancebernstein L.P. boosted its position in Arista Networks by 9.0% in the first quarter. Alliancebernstein L.P. now owns 22,959,214 shares of the technology company's stock valued at $1,778,880,000 after buying an additional 1,889,198 shares during the last quarter. Finally, Nuveen LLC purchased a new stake in Arista Networks in the first quarter valued at approximately $933,626,000. Hedge funds and other institutional investors own 82.47% of the company's stock.

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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