Guggenheim Capital LLC Decreases Stock Holdings in Arista Networks, Inc. $ANET

Key Points

• Guggenheim Capital LLC reduced its stake in Arista Networks by 12.1%, owning 135,420 shares after selling 18,665 shares in the first quarter, with holdings valued at approximately $10.49 million.
• Arista Networks reported a 30.4% increase in quarterly revenue compared to the previous year, totaling $2.20 billion, and earnings per share exceeded estimates at $0.73.
• Insider trading activity saw the CEO and director selling a substantial number of shares, with corporate insiders selling over 5.8 million shares valued at nearly $725 million in the last three months.

Guggenheim Capital LLC lowered its stake in shares of Arista Networks, Inc. (NYSE:ANET - Free Report) by 12.1% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 135,420 shares of the technology company's stock after selling 18,665 shares during the period. Guggenheim Capital LLC's holdings in Arista Networks were worth $10,492,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also recently added to or reduced their stakes in the stock. Brighton Jones LLC lifted its holdings in shares of Arista Networks by 321.7% in the fourth quarter. Brighton Jones LLC now owns 7,806 shares of the technology company's stock valued at $863,000 after purchasing an additional 5,955 shares in the last quarter. Revolve Wealth Partners LLC purchased a new stake in shares of Arista Networks in the fourth quarter valued at about $202,000. Bank Pictet & Cie Europe AG lifted its holdings in shares of Arista Networks by 433.7% in the fourth quarter. Bank Pictet & Cie Europe AG now owns 10,856 shares of the technology company's stock valued at $1,200,000 after purchasing an additional 8,822 shares in the last quarter. Quarry LP lifted its holdings in shares of Arista Networks by 381.5% in the fourth quarter. Quarry LP now owns 260 shares of the technology company's stock valued at $29,000 after purchasing an additional 206 shares in the last quarter. Finally, Beacon Pointe Advisors LLC lifted its holdings in shares of Arista Networks by 283.5% in the fourth quarter. Beacon Pointe Advisors LLC now owns 5,200 shares of the technology company's stock valued at $575,000 after purchasing an additional 3,844 shares in the last quarter. Hedge funds and other institutional investors own 82.47% of the company's stock.

Arista Networks Stock Performance

Shares of ANET stock opened at $136.17 on Friday. Arista Networks, Inc. has a one year low of $59.43 and a one year high of $141.99. The company has a 50 day moving average price of $117.30 and a 200 day moving average price of $97.40. The firm has a market capitalization of $171.15 billion, a price-to-earnings ratio of 53.56, a price-to-earnings-growth ratio of 3.13 and a beta of 1.37.

Arista Networks (NYSE:ANET - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The technology company reported $0.73 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.65 by $0.08. Arista Networks had a net margin of 40.90% and a return on equity of 31.05%. The company had revenue of $2.20 billion during the quarter, compared to analyst estimates of $2.11 billion. During the same quarter in the prior year, the business earned $0.53 earnings per share. The business's quarterly revenue was up 30.4% compared to the same quarter last year. Arista Networks has set its Q3 2025 guidance at EPS. As a group, equities analysts forecast that Arista Networks, Inc. will post 2.2 EPS for the current fiscal year.

Arista Networks declared that its board has initiated a share buyback program on Tuesday, May 6th that allows the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization allows the technology company to repurchase up to 1.3% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's board believes its stock is undervalued.

Insider Activity at Arista Networks

In other Arista Networks news, CEO Jayshree Ullal sold 24,040 shares of the stock in a transaction on Monday, August 25th. The shares were sold at an average price of $132.77, for a total transaction of $3,191,790.80. Following the transaction, the chief executive officer directly owned 9,917 shares in the company, valued at $1,316,680.09. This represents a 70.80% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Charles H. Giancarlo sold 8,000 shares of the stock in a transaction on Friday, August 1st. The shares were sold at an average price of $117.01, for a total transaction of $936,080.00. Following the transaction, the director owned 57,784 shares in the company, valued at $6,761,305.84. This trade represents a 12.16% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 5,847,614 shares of company stock valued at $724,868,593. Corporate insiders own 3.39% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on ANET. Wedbush started coverage on shares of Arista Networks in a report on Wednesday, May 28th. They issued an "outperform" rating on the stock. Piper Sandler upped their price objective on shares of Arista Networks from $89.00 to $143.00 and gave the company a "neutral" rating in a research note on Wednesday, August 6th. Erste Group Bank raised shares of Arista Networks from a "hold" rating to a "buy" rating in a research note on Wednesday, July 23rd. Wolfe Research started coverage on shares of Arista Networks in a research note on Tuesday, July 8th. They set an "outperform" rating on the stock. Finally, UBS Group upped their price objective on shares of Arista Networks from $115.00 to $155.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Fourteen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $138.07.

Arista Networks Company Profile

Arista Networks, Inc engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for data center, campus, and routing environments in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Its cloud networking solutions consist of Extensible Operating System (EOS), a publish-subscribe state-sharing networking operating system offered in combination with a set of network applications.

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