Arista Networks, Inc. $ANET Stock: Verus Capital Partners LLC Trims Holdings

Key Points

• Verus Capital Partners cut its Arista Networks stake by 59.1% in the third quarter, selling 9,593 shares and retaining 6,633 shares valued at about $1.35 million. Other institutional investors made mixed moves, and institutions own 82.47% of the stock.
• Arista posted strong third-quarter results: revenue rose 58.5% year over year to $3.66 billion, and EPS of $1.20 topped estimates. The company raised its outlook, citing demand for AI data-center networking.
• Analysts maintain a consensus Buy rating, with an average target price of $240.24, but valuation and reliance on large customers remain risks as the stock faces pressure.

Verus Capital Partners LLC decreased its holdings in shares of Arista Networks, Inc. (NYSE:ANET - Free Report) by 59.1% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 6,633 shares of the technology company's stock after selling 9,593 shares during the period. Verus Capital Partners LLC's holdings in Arista Networks were worth $1,350,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently modified their holdings of ANET. Flagship Wealth Advisors LLC purchased a new stake in Arista Networks during the third quarter worth $31,000. United Advisor Group LLC grew its stake in Arista Networks by 49.6% in the 3rd quarter. United Advisor Group LLC now owns 6,518 shares of the technology company's stock valued at $1,327,000 after acquiring an additional 2,161 shares during the last quarter. Plancorp LLC raised its position in Arista Networks by 63.2% during the third quarter. Plancorp LLC now owns 2,115 shares of the technology company's stock worth $431,000 after acquiring an additional 819 shares during the last quarter. May Hill Capital LLC acquired a new stake in shares of Arista Networks in the third quarter valued at approximately $325,000. Finally, Alps Advisors Inc. increased its position in Arista Networks by 45.8% during the third quarter. Alps Advisors Inc. now owns 9,687 shares of the technology company's stock worth $1,972,000 after buying an additional 3,045 shares in the last quarter. 82.47% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

ANET has been the subject of several analyst reports. The Goldman Sachs Group reissued a "buy" rating and issued a $225.00 target price on shares of Arista Networks in a research note on Wednesday, August 5th. Barclays reduced their price objective on shares of Arista Networks from $289.00 to $236.00 and set an "overweight" rating on the stock in a research note on Wednesday, November 4th. Citigroup reaffirmed a "buy" rating and issued a $248.00 price objective (up from $215.00) on shares of Arista Networks in a research report on Thursday, October 8th. BNP Paribas Exane upgraded Arista Networks to a "strong-buy" rating in a research report on Wednesday, October 14th. Finally, UBS Group reaffirmed a "buy" rating and set a $291.00 price objective (up from $259.00) 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 given a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Buy" and a consensus target price of $240.24.

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.

Arista Networks Stock Down 0.1%

Arista Networks stock opened at $170.70 on Monday. Arista Networks, Inc. has a 52-week low of $114.52 and a 52-week high of $217.41. The firm has a fifty day moving average of $192.59 and a 200-day moving average of $165.70. The firm has a market capitalization of $215.66 billion, a P/E ratio of 45.89, a PEG ratio of 1.59 and a beta of 1.61.

Arista Networks (NYSE:ANET - Get Free Report) last released its quarterly earnings data on Tuesday, November 3rd. The technology company reported $1.20 EPS for the quarter, beating the consensus estimate of $1.08 by $0.12. Arista Networks had a return on equity of 32.20% and a net margin of 39.97%. The company had revenue of $3.66 billion for the quarter, compared to analyst estimates of $3.33 billion. During the same period last year, the company posted $0.75 earnings per share. The firm's revenue was up 58.5% compared to the same quarter last year. On average, research analysts expect that Arista Networks, Inc. will post 3.85 EPS for the current fiscal year.

Insider Activity

In related news, insider Kenneth Duda sold 26,000 shares of Arista Networks stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $185.42, for a total transaction of $4,820,920.00. Following the sale, the insider owned 452,400 shares of the company's stock, valued at $83,884,008. The trade was a 5.43% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 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. Also, major shareholder Andreas Bechtolsheim sold 300,000 shares of the company's 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 approximately $35,919,039,399.60. The trade was a 0.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 2,380,998 shares of company stock worth $482,687,801. 2.70% of the stock is currently owned by company insiders.

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.

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