Arista Networks (NYSE:ANET) Trading Down 5% on Insider Selling

Key Points

• Arista Networks' shares fell 5% during mid-day trading on Friday, attributed to significant insider selling by CEO Jayshree Ullal and other executives, resulting in a marked decrease in trading volume.
• CEO Jayshree Ullal sold a total of 1,115,302 shares over two transactions, reducing her ownership stake by approximately 8.78% and 7.85%, respectively, with total proceeds exceeding $130 million.
• Despite the recent decline, analysts maintain a generally positive outlook on the stock, with a consensus rating of "Moderate Buy" and an average target price of $114.00, following a solid earnings report that surpassed forecasts.

Arista Networks, Inc. (NYSE:ANET - Get Free Report)'s share price was down 5% during mid-day trading on Friday after an insider sold shares in the company. The company traded as low as $115.41 and last traded at $117.07. Approximately 4,297,024 shares were traded during mid-day trading, a decline of 59% from the average daily volume of 10,522,421 shares. The stock had previously closed at $123.22.

Specifically, CEO Jayshree Ullal sold 288,820 shares of the company's stock in a transaction dated Wednesday, July 30th. The shares were sold at an average price of $122.19, for a total value of $35,290,915.80. Following the completion of the sale, the chief executive officer directly owned 6,065,859 shares of the company's stock, valued at approximately $741,187,311.21. This represents a 4.54% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Jayshree Ullal sold 588,000 shares of the company's stock in a transaction dated Tuesday, July 29th. The stock was sold at an average price of $119.15, for a total transaction of $70,060,200.00. Following the completion of the sale, the chief executive officer directly owned 6,105,713 shares of the company's stock, valued at $727,495,703.95. The trade was a 8.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. In other Arista Networks news, CEO Jayshree Ullal sold 527,302 shares of the company's stock in a transaction dated Monday, July 28th. The shares were sold at an average price of $115.59, for a total value of $60,950,838.18. Following the completion of the sale, the chief executive officer directly owned 6,186,850 shares of the company's stock, valued at approximately $715,137,991.50. This represents a 7.85% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on ANET shares. Morgan Stanley upped their price objective on shares of Arista Networks from $100.00 to $120.00 and gave the stock an "overweight" rating in a research report on Thursday. Evercore ISI increased their target price on shares of Arista Networks from $105.00 to $110.00 and gave the company an "outperform" rating in a research report on Monday, June 23rd. The Goldman Sachs Group reduced their target price on shares of Arista Networks from $130.00 to $115.00 and set a "buy" rating for the company in a research report on Wednesday, May 7th. Needham & Company LLC assumed coverage on shares of Arista Networks in a research report on Wednesday, May 28th. They set a "buy" rating for the company. Finally, KGI Securities downgraded shares of Arista Networks to a "neutral" rating in a research report on Wednesday, May 7th. Six investment analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $114.00.

Arista Networks Trading Down 4.6%

The company's fifty day moving average is $101.48 and its 200 day moving average is $95.12. The company has a market capitalization of $147.65 billion, a P/E ratio of 49.76, a P/E/G ratio of 3.58 and a beta of 1.37.

Arista Networks (NYSE:ANET - Get Free Report) last released its quarterly earnings data on Tuesday, May 6th. The technology company reported $0.65 EPS for the quarter, topping the consensus estimate of $0.59 by $0.06. Arista Networks had a net margin of 40.72% and a return on equity of 30.48%. The company had revenue of $2 billion during the quarter, compared to the consensus estimate of $1.97 billion. During the same period last year, the firm earned $0.50 EPS. Arista Networks's revenue for the quarter was up 27.6% on a year-over-year basis. Equities research analysts predict that Arista Networks, Inc. will post 2.2 EPS for the current year.

Arista Networks announced that its board has initiated a stock buyback program on Tuesday, May 6th that permits the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization permits the technology company to repurchase up to 1.3% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Institutional Trading of Arista Networks

Several institutional investors and hedge funds have recently bought and sold shares of ANET. HighMark Wealth Management LLC lifted its stake in Arista Networks by 179.7% in the 1st quarter. HighMark Wealth Management LLC now owns 358 shares of the technology company's stock worth $28,000 after purchasing an additional 230 shares in the last quarter. Quarry LP lifted its stake in Arista Networks by 381.5% in the 4th quarter. Quarry LP now owns 260 shares of the technology company's stock worth $29,000 after purchasing an additional 206 shares in the last quarter. Dunhill Financial LLC lifted its stake in Arista Networks by 415.7% in the 4th quarter. Dunhill Financial LLC now owns 263 shares of the technology company's stock worth $29,000 after purchasing an additional 212 shares in the last quarter. Cloud Capital Management LLC purchased a new stake in Arista Networks in the 1st quarter worth approximately $30,000. Finally, Saudi Central Bank purchased a new stake in Arista Networks in the 1st quarter worth approximately $33,000. 82.47% of the stock is currently owned by hedge funds and other institutional investors.

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.