Arista Networks, Inc. $ANET Stock: Steel Grove Capital Advisors LLC Grows Position

Key Points

• Steel Grove Capital Advisors increased its Arista Networks position by 2,399.5% in the third quarter, holding 38,992 shares worth approximately $7.94 million. Institutional investors and hedge funds collectively own 82.47% of the company.
• Arista reported strong operating momentum, with quarterly revenue rising 37.7% year over year to $3.04 billion and EPS of $1.02 beating estimates. Analysts maintain a broadly positive outlook, with a “Moderate Buy” consensus and an average price target of $235.45.
• ANET shares fell 3.3% to $203.82 amid valuation and insider-selling concerns; insiders sold 3.47 million shares worth about $706.4 million during the last quarter. The stock trades at a high P/E ratio of 64.25 despite strong demand expectations tied to AI and data-center networking.

Steel Grove Capital Advisors LLC lifted its position in Arista Networks, Inc. (NYSE:ANET - Free Report) by 2,399.5% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 38,992 shares of the technology company's stock after acquiring an additional 37,432 shares during the period. Arista Networks accounts for 0.5% of Steel Grove Capital Advisors LLC's holdings, making the stock its 17th largest position. Steel Grove Capital Advisors LLC's holdings in Arista Networks were worth $7,938,000 at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. Davidson Trust Co. acquired a new stake in Arista Networks during the 3rd quarter worth $3,512,000. Deutsche Bank AG grew its holdings in shares of Arista Networks by 4.3% during the second quarter. Deutsche Bank AG now owns 9,357,496 shares of the technology company's stock worth $1,589,651,000 after buying an additional 388,354 shares in the last quarter. Ferguson Wellman Capital Management Inc. raised its position in shares of Arista Networks by 2,827.9% in the third quarter. Ferguson Wellman Capital Management Inc. now owns 52,381 shares of the technology company's stock valued at $10,664,000 after buying an additional 50,592 shares during the last quarter. First National Bank of Mount Dora Trust Investment Services acquired a new stake in shares of Arista Networks in the first quarter valued at about $5,279,000. Finally, Whitaker Myers Wealth Managers LTD. raised its position in shares of Arista Networks by 564.1% in the second quarter. Whitaker Myers Wealth Managers LTD. now owns 16,847 shares of the technology company's stock valued at $2,862,000 after buying an additional 14,310 shares during the last quarter. 82.47% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Arista Networks

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

• Positive Sentiment: Analyst estimates edged higher: Erste Group Bank raised its FY2026 EPS forecast to $3.79 from $3.78 and its FY2027 estimate to $4.74 from $4.73, maintaining a “Buy” rating. The revisions are modest but reinforce expectations for continued earnings growth.
• Positive Sentiment: Strong demand outlook: Arista’s revenue outlook has reportedly been raised for the third time this year, while non-cancellable purchase commitments increased 2.7 times to $9.7 billion. These commitments suggest substantial future demand, particularly for AI and data-center networking equipment. Arista Networks Prospects and Earnings
• Neutral Sentiment: Relative performance remains a focus: Market commentary is examining whether Arista has outperformed other computer and technology stocks this year, reflecting the stock’s strong long-term momentum but also heightened expectations. Is Arista Networks Outperforming Other Computer and Technology Stocks This Year?
• Negative Sentiment: Deferred revenue complicates the cash-flow picture: Arista reported $6.866 billion of deferred revenue. Although the balance reflects customer cash collected in advance and supports future revenue recognition, investors may question how much reported cash flow is being driven by timing rather than current-period sales. Arista Has $6.9 Billion in Deferred Revenue
• Negative Sentiment: Insider selling adds pressure: Arista’s CEO reportedly sold approximately $21.1 million of stock. While insider sales do not necessarily signal deteriorating fundamentals, the transaction can weigh on sentiment when the shares trade at elevated valuation levels.

Arista Networks Trading Down 3.3%

ANET stock traded down $7.06 during trading on Tuesday, reaching $203.82. 4,562,398 shares of the stock were exchanged, compared to its average volume of 7,860,363. The business has a 50 day moving average price of $198.62 and a 200-day moving average price of $172.87. Arista Networks, Inc. has a 1 year low of $114.52 and a 1 year high of $217.41. The firm has a market capitalization of $257.07 billion, a price-to-earnings ratio of 64.25, a P/E/G ratio of 2.52 and a beta of 1.60.

Arista Networks (NYSE:ANET - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The technology company reported $1.02 earnings per share for the quarter, beating the consensus estimate of $0.89 by $0.13. Arista Networks had a net margin of 38.37% and a return on equity of 30.65%. The business had revenue of $3.04 billion during the quarter, compared to analysts' expectations of $2.83 billion. During the same quarter in the prior year, the company posted $0.73 EPS. The business's revenue for the quarter was up 37.7% on a year-over-year basis. 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 3.78 EPS for the current year.

Analysts Set New Price Targets

ANET has been the topic of several research reports. Jefferies Financial Group set a $250.00 price target on shares of Arista Networks in a research note on Wednesday, August 5th. Erste Group Bank raised shares of Arista Networks from a "hold" rating to a "buy" rating in a research note on Wednesday, July 15th. Wells Fargo & Company restated an "overweight" rating and set a $255.00 target price (up from $200.00) on shares of Arista Networks in a report on Wednesday, August 5th. Bank of America restated a "buy" rating and set a $240.00 target price (up from $200.00) on shares of Arista Networks in a report on Wednesday, August 5th. Finally, Needham & Company LLC restated a "buy" rating and issued a $260.00 price target (up from $200.00) on shares of Arista Networks in a research report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $235.45.

Insider Activity

In related news, major shareholder Andreas Bechtolsheim sold 300,000 shares of the company's stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $198.95, for a total value of $59,685,000.00. Following the transaction, the insider directly owned 180,543,048 shares in the company, valued at approximately $35,919,039,399.60. This represents a 0.17% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Chantelle Breithaupt sold 1,224 shares of the stock in a transaction that occurred on Tuesday, October 6th. The stock was sold at an average price of $215.00, for a total value of $263,160.00. Following the completion of the transaction, the chief financial officer owned 68,697 shares of the company's stock, valued at $14,769,855. The trade was a 1.75% 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. In the last quarter, insiders have sold 3,468,906 shares of company stock worth $706,366,437. 2.70% of the stock is owned by company insiders.

Arista Networks Profile

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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