Arista Networks (NYSE:ANET) Trading 1.3% Higher - Time to Buy?

Key Points

• Arista Networks' stock rose by 1.3% to $135.02, with trading volume significantly dropping to approximately 2.7 million shares, a 74% decrease from its average daily volume.
• Approximately 14 analysts have rated Arista Networks with a "Buy" rating and the average price target has been set at $138.07, following recent upward adjustments by institutions.
• The company's recent quarterly earnings report showed an EPS of $0.73, exceeding expectations, and revenue growth of 30.4% year-over-year, solidifying a strong financial outlook.

Arista Networks, Inc. (NYSE:ANET - Get Free Report) shares rose 1.3% during trading on Thursday . The stock traded as high as $136.08 and last traded at $135.02. Approximately 2,717,195 shares traded hands during trading, a decline of 74% from the average daily volume of 10,371,246 shares. The stock had previously closed at $133.27.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on ANET shares. Citigroup lifted their price target on shares of Arista Networks from $123.00 to $136.00 and gave the company a "buy" rating in a research report on Wednesday, August 6th. Wedbush initiated coverage on Arista Networks in a report on Wednesday, May 28th. They issued an "outperform" rating for the company. Needham & Company LLC upped their target price on Arista Networks from $130.00 to $155.00 and gave the company a "buy" rating in a research report on Wednesday, August 6th. Redburn Atlantic initiated coverage on Arista Networks in a research report on Wednesday, May 28th. They issued a "buy" rating and a $112.00 price target on the stock. Finally, KGI Securities downgraded Arista Networks to a "neutral" rating in a research note on Wednesday, May 7th. Fourteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $138.07.

Arista Networks Stock Performance

The firm's fifty day moving average is $116.38 and its 200-day moving average is $97.29. The company has a market capitalization of $170.60 billion, a P/E ratio of 53.39, a price-to-earnings-growth ratio of 3.16 and a beta of 1.37.

Arista Networks (NYSE:ANET - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The technology company reported $0.73 EPS for the quarter, beating the consensus estimate of $0.65 by $0.08. The business had revenue of $2.20 billion during the quarter, compared to the consensus estimate of $2.11 billion. Arista Networks had a net margin of 40.90% and a return on equity of 31.05%. The firm's revenue was up 30.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.53 EPS. Arista Networks has set its Q3 2025 guidance at EPS. As a group, analysts expect that Arista Networks, Inc. will post 2.2 EPS for the current fiscal year.

Arista Networks announced that its Board of Directors has approved a share buyback plan on Tuesday, May 6th that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the technology company to repurchase up to 1.3% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its stock is undervalued.

Insider Activity

In related news, CEO Jayshree Ullal sold 1,785,165 shares of the firm's stock in a transaction that occurred on Wednesday, August 6th. The shares were sold at an average price of $136.22, for a total value of $243,175,176.30. Following the completion of the transaction, the chief executive officer owned 5,698,074 shares in the company, valued at $776,191,640.28. This trade represents a 23.86% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders sold a total of 5,847,614 shares of company stock valued at $724,868,593 over the last three months. Corporate insiders own 3.39% of the company's stock.

Hedge Funds Weigh In On Arista Networks

Several institutional investors and hedge funds have recently added to or reduced their stakes in ANET. Thrivent Financial for Lutherans grew its stake in shares of Arista Networks by 77.2% in the second quarter. Thrivent Financial for Lutherans now owns 548,356 shares of the technology company's stock worth $55,909,000 after purchasing an additional 238,837 shares during the last quarter. MASTERINVEST Kapitalanlage GmbH bought a new stake in shares of Arista Networks in the 2nd quarter valued at about $4,373,000. Stance Capital LLC bought a new stake in shares of Arista Networks in the 2nd quarter valued at about $1,426,000. B. Riley Wealth Advisors Inc. acquired a new stake in shares of Arista Networks in the second quarter valued at about $471,000. Finally, Newbridge Financial Services Group Inc. raised its position in shares of Arista Networks by 56.2% during the second quarter. Newbridge Financial Services Group Inc. now owns 33,512 shares of the technology company's stock worth $3,429,000 after acquiring an additional 12,057 shares during the last quarter. 82.47% of the stock is currently owned by institutional investors and hedge funds.

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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