Arista Networks, Inc. $ANET Stock Acquired by Salem Investment Counselors Inc.

Key Points

• Salem Investment Counselors increased its Arista Networks stake by 762.3% in the third quarter, ending with 8,821 shares valued at approximately $1.8 million. Institutional investors collectively own 82.47% of the company.
• Arista reported strong quarterly results, with EPS of $1.02 beating the $0.89 consensus and revenue rising 37.7% year over year to $3.04 billion. The company is also expanding its AI networking portfolio, supporting expectations for continued demand.
• ANET recently traded at $195.11, down 4.6%, amid valuation concerns and profit-taking after a strong run. Analysts maintain a generally positive view, with a “Moderate Buy” consensus and an average price target of $235.45, while insiders have sold substantial shares under pre-arranged trading plans.

Salem Investment Counselors Inc. raised its stake in Arista Networks, Inc. (NYSE:ANET - Free Report) by 762.3% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 8,821 shares of the technology company's stock after buying an additional 7,798 shares during the period. Salem Investment Counselors Inc.'s holdings in Arista Networks were worth $1,796,000 at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. ABS Investment Management LLC bought a new stake in shares of Arista Networks during the 2nd quarter worth $29,000. ABS Direct Equity Fund LLC purchased a new position in Arista Networks in the second quarter worth $29,000. Kelleher Financial Advisors purchased a new position in Arista Networks in the second quarter worth $31,000. Cornerstone Financial Management LLC grew its position in Arista Networks by 61.9% in the second quarter. Cornerstone Financial Management LLC now owns 183 shares of the technology company's stock worth $31,000 after acquiring an additional 70 shares in the last quarter. Finally, Sankala Group LLC bought a new position in Arista Networks in the fourth quarter valued at $27,000. Institutional investors own 82.47% of the company's stock.

Arista Networks Stock Down 4.6%

NYSE ANET opened at $195.11 on Thursday. The company has a 50-day simple moving average of $198.83 and a two-hundred day simple moving average of $173.87. Arista Networks, Inc. has a 12-month low of $114.52 and a 12-month high of $217.41. The firm has a market cap of $246.07 billion, a price-to-earnings ratio of 61.55, a PEG ratio of 2.38 and a beta of 1.60.

Arista Networks (NYSE:ANET - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The technology company reported $1.02 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.89 by $0.13. The firm had revenue of $3.04 billion for the quarter, compared to analysts' expectations of $2.83 billion. Arista Networks had a return on equity of 30.65% and a net margin of 38.37%. The company's revenue for the quarter was up 37.7% compared to the same quarter last year. During the same period last year, the firm earned $0.73 earnings per share. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. Equities analysts expect that Arista Networks, Inc. will post 3.79 earnings per share for the current fiscal year.

Insider Activity at Arista Networks

In other Arista Networks news, insider Kenneth Duda sold 17,333 shares of Arista Networks stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $203.50, for a total value of $3,527,265.50. Following the transaction, the insider directly owned 12,976 shares of the company's stock, valued at $2,640,616. The trade was a 57.19% decrease in their position. The sale was disclosed in a document filed 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, CEO Jayshree Ullal sold 130,553 shares of Arista Networks stock in a transaction that occurred on Friday, October 9th. The stock was sold at an average price of $217.10, for a total value 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 3,627,449 shares of company stock worth $740,784,723 over the last three months. Corporate insiders own 2.70% of the company's stock.

Key Stories Impacting Arista Networks

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

• Positive Sentiment: Arista introduced an open Ethernet rack-scale portfolio designed to connect accelerators across liquid-cooled racks for large AI workloads. The launch reinforces the company’s position in AI networking and could expand its addressable market. Arista Networks Stock Dropped, What Is Behind the Fresh Attention?
• Positive Sentiment: Erste Group Bank modestly raised its FY2026 EPS estimate to $3.79 from $3.78 and its FY2027 forecast to $4.74 from $4.73, while maintaining a Buy rating. The revisions suggest continued confidence in Arista’s earnings growth.
• Positive Sentiment: A separate report said Arista’s revenue outlook was raised for the third time this year and non-cancellable purchase commitments climbed 2.7 times to $9.7 billion. If accurate, the commitments provide stronger visibility into future demand. Arista Networks Prospects and Earnings
• Neutral Sentiment: Arista’s previous quarterly results exceeded expectations, with revenue up 37.7% year over year and EPS of $1.02 versus the $0.89 consensus. However, the stock trades at a high earnings multiple, leaving less room for disappointment.
• Negative Sentiment: CEO Jayshree Ullal sold 130,553 shares for approximately $28.3 million and another 27,990 shares for about $6.1 million. Both transactions were executed under a pre-arranged Rule 10b5-1 plan, and Ullal still owns roughly 4.8 million shares, which reduces—but does not eliminate—the negative signal from the sales.
• Negative Sentiment: The stock recently declined more than the broader market after gaining about 58% year to date and reaching near its 52-week high. The move appears consistent with profit-taking and valuation concerns rather than a reported deterioration in Arista’s business outlook. Arista Networks Registers a Bigger Fall Than the Market

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on ANET shares. Needham & Company LLC restated a "buy" rating and set a $260.00 price target (up from $200.00) on shares of Arista Networks in a research report on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft started coverage on Arista Networks in a research note on Monday, August 31st. They set a "buy" rating and a $220.00 price target for the company. Weiss Ratings cut Arista Networks from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, October 6th. KeyCorp reiterated an "overweight" rating and set a $250.00 price objective (up from $200.00) on shares of Arista Networks in a research report on Wednesday, August 5th. Finally, Piper Sandler reiterated an "overweight" rating and set a $240.00 price objective (up from $181.00) on shares of Arista Networks in a research report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $235.45.

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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