56,687 Arista Networks, Inc. $ANET Shares Sold by Kessler Investment Group LLC

Key Points

• Kessler Investment Group cut its Arista Networks stake by 86%, selling 56,687 shares and retaining 9,245 shares worth approximately $1.88 million. Other institutional investors initiated positions, while institutions collectively own 82.47% of ANET.
• Wall Street remains broadly bullish, with one Strong Buy, 20 Buy and two Hold ratings. The stock has a consensus “Moderate Buy” rating and an average price target of $231.70.
• Arista reported strong operating momentum, with revenue up 37.7% year over year to $3.04 billion and EPS of $1.02, beating estimates. However, insider selling, a high valuation near 66 times earnings and a recent Zacks downgrade to Hold present potential headwinds.

Kessler Investment Group LLC lessened its stake in Arista Networks, Inc. (NYSE:ANET - Free Report) by 86.0% during the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 9,245 shares of the technology company's stock after selling 56,687 shares during the quarter. Kessler Investment Group LLC's holdings in Arista Networks were worth $1,882,000 at the end of the most recent reporting period.

Several other hedge funds also recently modified their holdings of the stock. Whalen Wealth Management Inc. purchased a new stake in Arista Networks in the 3rd quarter valued at $601,000. Alkeme Wealth LLC purchased a new position in Arista Networks during the 3rd quarter worth $13,618,000. HWG Holdings LP purchased a new position in Arista Networks during the 3rd quarter worth $3,688,000. Applied Capital LLC FL bought a new stake in shares of Arista Networks in the 3rd quarter worth $6,005,000. Finally, Dominguez Wealth Management Solutions Inc. purchased a new stake in shares of Arista Networks in the third quarter valued at about $773,000. Hedge funds and other institutional investors own 82.47% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on ANET. Evercore reissued an "outperform" rating on shares of Arista Networks in a research report on Wednesday. Citigroup reiterated a "buy" rating on shares of Arista Networks in a research note on Thursday. The Goldman Sachs Group reissued a "buy" rating and set a $225.00 target price on shares of Arista Networks in a research report on Wednesday, August 5th. Erste Group Bank upgraded Arista Networks from a "hold" rating to a "buy" rating in a research note on Wednesday, July 15th. Finally, Zacks Research lowered Arista Networks from a "strong-buy" rating to a "hold" rating in a report on Monday. One analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $231.70.

Insider Buying and Selling at Arista Networks

In other news, CEO Jayshree Ullal sold 767,029 shares of the company's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $201.22, for a total transaction of $154,341,575.38. Following the transaction, the chief executive officer owned 16,387,981 shares of the company's stock, valued at $3,297,589,536.82. This represents a 4.47% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Kenneth Duda sold 26,000 shares of the stock in a transaction on Monday, July 20th. The stock was sold at an average price of $170.51, for a total value of $4,433,260.00. Following the transaction, the insider owned 462,400 shares of the company's stock, valued at $78,843,824. The trade was a 5.32% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 3,144,894 shares of company stock valued at $631,310,023. Company insiders own 2.70% of the company's stock.

Arista Networks Stock Performance

ANET traded down $5.19 during midday trading on Thursday, reaching $210.64. The company had a trading volume of 1,949,978 shares, compared to its average volume of 7,904,329. The stock has a market cap of $265.67 billion, a PE ratio of 66.14, a P/E/G ratio of 2.53 and a beta of 1.60. Arista Networks, Inc. has a 12-month low of $114.52 and a 12-month high of $217.32. The business has a 50-day moving average price of $196.59 and a two-hundred day moving average price of $171.18.

Arista Networks (NYSE:ANET - Get Free Report) last released its earnings results on Tuesday, August 4th. The technology company reported $1.02 earnings per share for the quarter, beating analysts' consensus estimates of $0.89 by $0.13. Arista Networks had a net margin of 38.37% and a return on equity of 30.65%. The firm had revenue of $3.04 billion during the quarter, compared to the consensus estimate of $2.83 billion. During the same period in the prior year, the firm earned $0.73 EPS. The company's revenue was up 37.7% compared to the same quarter last year. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. On average, research analysts anticipate that Arista Networks, Inc. will post 3.74 earnings per share for the current year.

Key Stories Impacting Arista Networks

Here are the key news stories impacting Arista Networks this week:

• Positive Sentiment: New AI networking portfolio strengthens growth outlook. Arista launched open Ethernet rack-scale architectures for high-density AI infrastructure, including scale-up and scale-out networking, liquid-cooled systems, and support for large accelerator clusters. The portfolio was developed with major partners including AMD, Arm, Broadcom, Meta, Microsoft and Qualcomm, potentially positioning Arista to benefit as hyperscalers seek alternatives to proprietary interconnects such as NVIDIA’s InfiniBand. Arista Announces Rack-Scale Architectures for Scale-Up and Scale-Out AI Fabrics
• Positive Sentiment: Investors and fund managers remain constructive on Arista’s AI opportunity. Recent investment commentary describes the company as a potential key beneficiary of AI infrastructure spending, citing solid execution, a clearer path to AI monetization and raised guidance. The stock has also recently benefited from broad demand for AI networking equipment. Arista Networks Could Be a Key Winner From the AI Infrastructure Boom
• Positive Sentiment: Recent operating performance supports the bullish thesis. Arista’s latest reported quarter exceeded consensus expectations, with revenue of approximately $3.04 billion, year-over-year growth of 37.7%, and EPS of $1.02 versus an estimated $0.89. Management’s next-quarter EPS outlook of $1.06-$1.08 indicates continued momentum ahead of the company’s November 3 earnings release. Arista Networks to Announce Q3 2026 Financial Results
• Neutral Sentiment: The stock recently reached a new 52-week high before retreating. Strong AI enthusiasm and buying among technology stocks pushed ANET to record levels, but the subsequent decline reflects normal profit-taking and increased sensitivity to market conditions. Arista Networks Reaches a Fresh 52-Week High
• Negative Sentiment: Valuation and a Zacks downgrade are near-term headwinds. Zacks Research lowered Arista from “strong buy” to “hold.” With the shares trading at roughly 67 times earnings, investors may be demanding sustained, above-market growth, leaving the stock vulnerable to profit-taking, higher interest rates and any signs of slowing AI spending. Arista Networks Stock Rating Lowered by Zacks Research

About Arista Networks

Arista Networks, Inc develops and sells cloud networking solutions for data centers, campus environments and high-performance computing applications. Its products include Ethernet switches, routers, wireless access points and related networking equipment designed to support cloud computing, artificial intelligence, enterprise and service-provider networks.

The company's software portfolio includes Arista EOS, its network operating system, and CloudVision, a platform that helps customers manage, automate and monitor network infrastructure.

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