Arista Networks (NYSE:ANET) Trading Up 2.6% - Here's Why

Key Points

• Arista Networks shares rose 2.6% on Tuesday, trading between $172.33 and $175.43 as volume came in below average.
• Several analysts remain bullish: TD Cowen raised its price target to $200, while the stock’s overall consensus rating is Buy with an average target price of $185.72.
• The company’s latest earnings beat expectations, with $0.87 EPS on $2.71 billion in revenue, and revenue grew 35.1% year over year.

Arista Networks, Inc. (NYSE:ANET - Get Free Report) was up 2.6% on Tuesday . The stock traded as high as $172.33 and last traded at $175.43. Approximately 9,963,978 shares were traded during trading, a decline of 23% from the average daily volume of 12,989,964 shares. The stock had previously closed at $170.9050.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on ANET shares. TD Cowen reiterated a "buy" rating and set a $200.00 target price (up from $170.00) on shares of Arista Networks in a research report on Wednesday, May 6th. Morgan Stanley reiterated an "overweight" rating and set a $180.00 target price on shares of Arista Networks in a research report on Friday, May 1st. Raymond James Financial upgraded Arista Networks from a "market perform" rating to an "outperform" rating and set a $164.00 target price on the stock in a research report on Friday, May 15th. Truist Financial set a $175.00 target price on Arista Networks in a research report on Wednesday, May 6th. Finally, Citigroup reduced their target price on Arista Networks from $176.00 to $173.00 and set a "buy" rating on the stock in a research report on Wednesday, May 6th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, Arista Networks presently has an average rating of "Buy" and an average target price of $185.72.

Arista Networks Stock Performance

The business has a fifty day moving average price of $148.22 and a 200 day moving average price of $137.86. The company has a market capitalization of $220.90 billion, a PE ratio of 60.08, a P/E/G ratio of 2.46 and a beta of 1.67.

Arista Networks (NYSE:ANET - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The technology company reported $0.87 EPS for the quarter, topping analysts' consensus estimates of $0.81 by $0.06. The company had revenue of $2.71 billion for the quarter, compared to the consensus estimate of $2.62 billion. Arista Networks had a return on equity of 30.10% and a net margin of 38.32%.The company's quarterly revenue was up 35.1% compared to the same quarter last year. During the same period last year, the business posted $0.65 EPS. Arista Networks has set its Q2 2026 guidance at 0.880-0.880 EPS. Research analysts forecast that Arista Networks, Inc. will post 3.27 earnings per share for the current fiscal year.

Insider Buying and Selling at Arista Networks

In related news, CFO Chantelle Yvette Breithaupt sold 2,448 shares of the firm's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $157.00, for a total transaction of $384,336.00. Following the sale, the chief financial officer directly owned 64,408 shares in the company, valued at approximately $10,112,056. This trade represents a 3.66% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kelly Bodnar Battles sold 422 shares of the firm's stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $146.44, for a total value of $61,797.68. Following the sale, the director owned 10,078 shares in the company, valued at approximately $1,475,822.32. The trade was a 4.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 1,935,142 shares of company stock worth $313,589,223. Insiders own 2.70% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Lighthouse Financial Services Inc. ADV acquired a new position in Arista Networks during the 4th quarter valued at approximately $1,549,000. Bensler LLC acquired a new position in shares of Arista Networks in the 4th quarter worth $6,350,000. QRG Capital Management Inc. grew its holdings in shares of Arista Networks by 6.4% in the 4th quarter. QRG Capital Management Inc. now owns 169,613 shares of the technology company's stock worth $22,224,000 after acquiring an additional 10,217 shares during the last quarter. BI Asset Management Fondsmaeglerselskab A S grew its holdings in shares of Arista Networks by 38.3% during the third quarter. BI Asset Management Fondsmaeglerselskab A S now owns 662,139 shares of the technology company's stock valued at $96,480,000 after buying an additional 183,515 shares in the last quarter. Finally, Jefferies Financial Group Inc. grew its holdings in shares of Arista Networks by 59.8% during the fourth quarter. Jefferies Financial Group Inc. now owns 17,621 shares of the technology company's stock valued at $2,309,000 after buying an additional 6,591 shares in the last quarter. Institutional investors and hedge funds own 82.47% of the company's stock.

About Arista Networks

Arista Networks, Inc is a technology company that designs and sells cloud networking solutions for large-scale data centers and enterprise environments. The company is best known for its high-performance switching and routing platforms, which are used to build scalable, low-latency networks for cloud service providers, internet companies, financial services, telecommunications, and enterprise IT. Arista's offerings emphasize programmability, automation and telemetry to support modern, software-driven network architectures.

Central to Arista's product portfolio is its Extensible Operating System (EOS), a modular network operating system that provides consistent programmability, stateful control and advanced visibility across the company's hardware platforms.

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