Arista Networks, Inc. $ANET Holdings Lowered by Commonwealth Equity Services LLC

Key Points

• Commonwealth Equity Services cut its Arista Networks stake by 4.1% in the third quarter, selling 15,735 shares; it still held 367,596 shares worth about $74.8 million.
• Arista reported quarterly revenue of $3.66 billion, up 58.5% year over year, and EPS of $1.20, beating analysts’ estimates; the company also raised its outlook amid demand for AI data-center networking.
• Analysts remain broadly bullish, with a consensus “Buy” rating and an average price target of $240.24. Institutional investors own 82.47% of the company’s shares.

Commonwealth Equity Services LLC trimmed its position in shares of Arista Networks, Inc. (NYSE:ANET - Free Report) by 4.1% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 367,596 shares of the technology company's stock after selling 15,735 shares during the quarter. Commonwealth Equity Services LLC's holdings in Arista Networks were worth $74,839,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in ANET. Main Street Group LTD acquired a new position in Arista Networks during the first quarter worth $26,000. William Mack & Associates Inc. acquired a new stake in shares of Arista Networks in the third quarter valued at about $27,000. ABS Investment Management LLC acquired a new stake in shares of Arista Networks in the second quarter valued at about $29,000. ABS Direct Equity Fund LLC purchased a new stake in Arista Networks during the second quarter worth about $29,000. Finally, Kelleher Financial Advisors purchased a new stake in shares of Arista Networks during the 2nd quarter worth approximately $31,000. 82.47% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on ANET. UBS Group reissued a "buy" rating and issued a $291.00 target price (up from $259.00) on shares of Arista Networks in a research note on Wednesday. KeyCorp reissued an "overweight" rating and set a $250.00 price target (up from $200.00) on shares of Arista Networks in a research report on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Arista Networks in a research report on Monday, August 31st. They set a "buy" rating and a $220.00 price target on the stock. TD Cowen decreased their target price on Arista Networks from $250.00 to $205.00 and set a "buy" rating for the company in a research report on Monday, October 19th. Finally, Rosenblatt Securities restated a "buy" rating and issued a $280.00 target price on shares of Arista Networks in a research note on Wednesday. Three investment analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus target price of $240.24.

Trending Headlines about Arista Networks

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

• Positive Sentiment: Arista reported third-quarter revenue of $3.66 billion, up 58.5% year over year and above estimates, while EPS of $1.20 also beat expectations. The company raised its outlook, citing demand for AI data-center networking, Ethernet adoption, and growth across hyperscale and enterprise customers. Read More.
• Positive Sentiment: Analyst support offers another tailwind: Melius Research initiated coverage with a “strong-buy” rating, while other recent reports cited buy ratings and bullish price targets. Read More.
• Neutral Sentiment: The recent selloff has left investors debating whether the pullback creates a buying opportunity. ANET has declined substantially over the past month despite its strong results, leaving sentiment divided. Read More.
• Negative Sentiment: Valuation and customer concentration remain risks: Arista’s premium forward earnings multiple leaves less room for disappointment, while reliance on a limited number of large customers could make growth more vulnerable to spending changes. Read More.
• Negative Sentiment: Shares have also faced pressure from a broader AI-infrastructure stock selloff and reported insider sales. Those sales included transactions under pre-arranged trading plans, but can still add to near-term investor caution. Read More.

Arista Networks Price Performance

Arista Networks stock traded up $11.54 during midday trading on Friday, reaching $170.70. The stock had a trading volume of 11,977,293 shares, compared to its average volume of 6,207,998. The firm has a market cap of $215.29 billion, a price-to-earnings ratio of 45.89, a PEG ratio of 1.91 and a beta of 1.61. Arista Networks, Inc. has a twelve month low of $114.52 and a twelve month high of $217.41. The firm's fifty day simple moving average is $192.59 and its two-hundred day simple moving average is $165.70.

Arista Networks (NYSE:ANET - Get Free Report) last announced its quarterly earnings data on Tuesday, November 3rd. The technology company reported $1.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.08 by $0.12. Arista Networks had a return on equity of 30.65% and a net margin of 38.37%. The firm had revenue of $3.66 billion during the quarter, compared to the consensus estimate of $3.33 billion. During the same period in the prior year, the business earned $0.75 EPS. The business's revenue for the quarter was up 58.5% on a year-over-year basis. As a group, sell-side analysts predict that Arista Networks, Inc. will post 3.83 EPS for the current fiscal year.

Insider Buying and Selling at Arista Networks

In related news, major shareholder Andreas Bechtolsheim sold 300,000 shares of Arista Networks stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $198.95, for a total transaction of $59,685,000.00. Following the completion of the transaction, the insider directly owned 180,543,048 shares of the company's stock, valued at $35,919,039,399.60. This trade represents a 0.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Kenneth Duda sold 26,000 shares of the firm's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $185.42, for a total value of $4,820,920.00. Following the sale, the insider directly owned 452,400 shares of the company's stock, valued at $83,884,008. This represents a 5.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 2,380,998 shares of company stock valued at $482,687,801 in the last quarter. Corporate insiders own 2.70% of the company's stock.

Arista Networks Company Profile

Arista Networks, Inc develops software-driven networking products for large data centers, cloud environments, AI workloads, and enterprise campuses. Its offerings include Ethernet switches and routers, along with software and services for managing, monitoring, and securing networks.

The company's software portfolio includes its Extensible Operating System (EOS), which runs across its networking platforms, and CloudVision, a platform for network automation and management. Arista's products are used by cloud providers, businesses, and other organizations to connect and manage computing infrastructure.

Founded in 2004 and headquartered in Santa Clara, California, Arista serves customers worldwide.

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