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

Key Points

• Arista Networks' stock price rose 1.6% to $145.73, with trading volume decreasing by 43% compared to the average daily volume.
• Analysts have issued positive ratings, with Goldman Sachs and JPMorgan Chase raising their price targets to $175.00, indicating strong investor confidence.
• CEO Jayshree Ullal sold over 1.2 million shares, which represents an 18.82% decrease in her position, though she still retains a substantial 5.38 million shares.

Shares of Arista Networks, Inc. (NYSE:ANET - Get Free Report) rose 1.6% during trading on Tuesday . The company traded as high as $145.84 and last traded at $145.73. Approximately 5,823,192 shares changed hands during mid-day trading, a decline of 43% from the average daily volume of 10,292,258 shares. The stock had previously closed at $143.37.

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. The Goldman Sachs Group raised their target price on shares of Arista Networks from $155.00 to $175.00 and gave the stock a "buy" rating in a research note on Friday, September 12th. Piper Sandler increased 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. JPMorgan Chase & Co. increased their price target on Arista Networks from $150.00 to $175.00 and gave the company an "overweight" rating in a report on Friday, September 12th. Evercore ISI increased their price target on Arista Networks from $150.00 to $175.00 and gave the company an "outperform" rating in a report on Friday, September 12th. Finally, UBS Group increased 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. Eighteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $162.00.

Arista Networks Stock Performance

The firm's 50 day moving average price is $134.86 and its two-hundred day moving average price is $104.93. The firm has a market cap of $183.16 billion, a PE ratio of 57.32, a PEG ratio of 2.97 and a beta of 1.49.

Arista Networks (NYSE:ANET - Get Free Report) last posted its quarterly 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. 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 during the quarter, compared to analysts' expectations of $2.11 billion. During the same quarter in the prior year, the company posted $0.53 EPS. The business's revenue for the quarter was up 30.4% on a year-over-year basis. Arista Networks has set its Q3 2025 guidance at EPS. On average, analysts forecast that Arista Networks, Inc. will post 2.2 earnings per share for the current year.

Insider Activity

In related news, CEO Jayshree Ullal sold 1,247,688 shares of the 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 owned 5,383,207 shares of the company's stock, valued at approximately $799,567,735.71. This trade represents a 18.82% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Charles H. Giancarlo sold 58,000 shares of the stock in a transaction that occurred on Friday, September 19th. The stock was sold at an average price of $148.42, for a total transaction of $8,608,360.00. The disclosure for this sale can be found here. Insiders sold a total of 6,670,904 shares of company stock valued at $892,841,241 in the last 90 days. Company insiders own 3.54% of the company's stock.

Hedge Funds Weigh In On Arista Networks

Hedge funds have recently made changes to their positions in the stock. Ibex Wealth Advisors boosted its position 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 purchasing an additional 7,329 shares during the period. Sowell Financial Services LLC purchased a new position in shares of Arista Networks during the 1st quarter worth approximately $629,000. Commonwealth Equity Services LLC boosted its position in Arista Networks by 19.8% in the 1st quarter. Commonwealth Equity Services LLC now owns 613,309 shares of the technology company's stock valued at $47,519,000 after buying an additional 101,162 shares during the period. Westfield Capital Management Co. LP purchased a new position in Arista Networks in the 1st quarter valued at approximately $15,227,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank boosted its position in Arista Networks by 94.8% in the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 650,011 shares of the technology company's stock valued at $50,363,000 after buying an additional 316,309 shares during the period. Hedge funds and other institutional investors own 82.47% of the company's stock.

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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