Arista Networks, Inc. $ANET Shares Acquired by Kestra Advisory Services LLC

Key Points

• Kestra Advisory Services increased its Arista Networks stake 12.2% in the third quarter, adding 12,029 shares to hold 110,831 shares valued at about $22.6 million. Institutional investors collectively own 82.47% of the company.
• Arista reported quarterly revenue of $3.66 billion, up 58.5% year over year, and earnings per share of $1.20, beating analyst estimates; the company also raised its outlook amid demand for AI data-center networking.
• Analyst sentiment remains broadly positive, with an average “Buy” rating and a $240.24 average price target, though some firms downgraded the stock to “Hold.” Insiders sold shares recently, including transactions made under pre-arranged trading plans.

Kestra Advisory Services LLC grew its holdings in Arista Networks, Inc. (NYSE:ANET - Free Report) by 12.2% in the 3rd quarter, according to the company in its most recent filing with the SEC. The firm owned 110,831 shares of the technology company's stock after buying an additional 12,029 shares during the quarter. Kestra Advisory Services LLC's holdings in Arista Networks were worth $22,564,000 at the end of the most recent quarter.

Other large investors have also recently made changes to their positions in the company. State Street Corp raised its holdings in shares of Arista Networks by 159.4% during the second quarter. State Street Corp now owns 121,303,125 shares of the technology company's stock valued at $20,606,975,000 after acquiring an additional 74,541,134 shares in the last quarter. Jupiter Topco LLC purchased a new stake in Arista Networks in the second quarter worth $1,101,860,000. Envestnet Asset Management Inc. boosted its holdings in Arista Networks by 199.0% in the second quarter. Envestnet Asset Management Inc. now owns 9,630,196 shares of the technology company's stock valued at $1,635,978,000 after acquiring an additional 6,409,612 shares in the last quarter. Alyeska Investment Group L.P. bought a new stake in Arista Networks in the second quarter valued at $537,736,000. Finally, Massachusetts Financial Services Co. MA increased its position in Arista Networks by 34.6% during the 2nd quarter. Massachusetts Financial Services Co. MA now owns 9,725,196 shares of the technology company's stock valued at $1,712,788,000 after purchasing an additional 2,497,275 shares during the period. 82.47% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several research analysts have commented on the stock. Zacks Research lowered shares of Arista Networks from a "strong-buy" rating to a "hold" rating in a report on Monday, October 5th. Weiss Ratings cut shares of Arista Networks from a "buy (b)" rating to a "hold (c+)" rating in a research report on Wednesday. Wells Fargo & Company reaffirmed an "overweight" rating and set a $245.00 target price (down from $255.00) on shares of Arista Networks in a research note on Wednesday. JPMorgan Chase & Co. boosted their price target on shares of Arista Networks from $250.00 to $270.00 and gave the company an "overweight" rating in a research report on Wednesday. Finally, Rosenblatt Securities reissued a "buy" rating and issued a $280.00 price target on shares of Arista Networks in a research note on Wednesday. Three equities research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Buy" and an average target price of $240.24.

Insider Buying and Selling

In other news, CEO Jayshree Ullal sold 130,553 shares of the firm's stock in a transaction on Friday, October 9th. The stock was sold at an average price of $217.10, for a total transaction of $28,343,056.30. Following the completion of the transaction, the chief executive officer directly owned 4,774,691 shares in the company, valued at $1,036,585,416.10. This trade represents a 2.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Andreas Bechtolsheim sold 267,892 shares of the stock in a transaction dated Friday, October 30th. The shares were sold at an average price of $171.19, for a total transaction of $45,860,431.48. Following the sale, the insider directly owned 180,275,156 shares in the company, valued at $30,861,303,955.64. This trade represents a 0.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 2,380,998 shares of company stock worth $482,687,801 over the last three months. Corporate insiders own 2.70% of the company's stock.

Arista Networks Price Performance

Shares of NYSE ANET opened at $170.70 on Friday. Arista Networks, Inc. has a 1 year low of $114.52 and a 1 year high of $217.41. The stock has a market cap of $215.66 billion, a P/E ratio of 45.89, a price-to-earnings-growth ratio of 1.71 and a beta of 1.61. The firm has a 50-day moving average of $192.59 and a 200 day moving average of $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 for the quarter, topping analysts' consensus estimates of $1.08 by $0.12. Arista Networks had a net margin of 39.97% and a return on equity of 32.20%. The business had revenue of $3.66 billion for the quarter, compared to analysts' expectations of $3.33 billion. During the same quarter in the prior year, the company earned $0.75 earnings per share. The business's revenue was up 58.5% compared to the same quarter last year. Research analysts expect that Arista Networks, Inc. will post 3.85 earnings per share for the current fiscal year.

Key Headlines Impacting 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.

About Arista Networks

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.

Want to see what other hedge funds are holding ANET? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Arista Networks, Inc. (NYSE:ANET - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.