Arista Networks (NYSE:ANET) Shares Down 2.8% on Insider Selling

Key Points

• Arista Networks shares fell 2.8% to about $210.72 after CEO Jayshree Ullal sold 96,992 shares worth approximately $21.1 million and CFO Chantelle Breithaupt sold 1,224 shares. Both transactions were made under pre-arranged Rule 10b5-1 trading plans.
• Analysts remain broadly bullish, with a consensus rating of “Moderate Buy” and an average price target of $235.45; recent targets range from $220 to $289.
• Arista reported strong quarterly results, including $1.02 in EPS versus an $0.89 estimate and $3.04 billion in revenue, up 37.7% year over year. Institutional investors own approximately 82.47% of the company.

Arista Networks, Inc. (NYSE:ANET - Get Free Report)'s share price was down 2.8% during mid-day trading on Monday after an insider sold shares in the company. The company traded as low as $210.18 and last traded at $210.7170. Approximately 3,266,631 shares changed hands during mid-day trading, a decline of 59% from the average daily volume of 7,877,805 shares. The stock had previously closed at $216.74.

Specifically, CEO Jayshree Ullal sold 96,992 shares of the stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $217.14, for a total value of $21,060,842.88. Following the completion of the transaction, the chief executive officer owned 4,797,347 shares in the company, valued at $1,041,695,927.58. This represents a 1.98% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Chantelle Breithaupt sold 1,224 shares of the firm's stock in a transaction dated Tuesday, October 6th. The shares were sold at an average price of $215.00, for a total transaction of $263,160.00. Following the transaction, the chief financial officer directly owned 68,697 shares in the company, valued at approximately $14,769,855. The trade was a 1.75% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In other Arista Networks news, CEO Jayshree Ullal sold 460,374 shares of the business's stock in a transaction dated Tuesday, October 6th. The shares were sold at an average price of $212.09, for a total transaction of $97,640,721.66. Following the sale, the chief executive officer directly owned 4,811,207 shares in the company, valued at approximately $1,020,408,892.63. The trade was a 8.73% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

ANET has been the subject of a number of research analyst reports. Erste Group Bank raised shares of Arista Networks from a "hold" rating to a "buy" rating in a research note on Wednesday, July 15th. Jefferies Financial Group set a $250.00 price objective on shares of Arista Networks in a research note on Wednesday, August 5th. Barclays reissued an "overweight" rating and set a $289.00 target price (up from $195.00) on shares of Arista Networks in a report on Wednesday, August 5th. Wells Fargo & Company restated an "overweight" rating and issued a $255.00 target price (up from $200.00) on shares of Arista Networks in a research report on Wednesday, August 5th. Finally, 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. One research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $235.45.

Arista Networks Stock Down 2.8%

The stock has a market capitalization of $265.76 billion, a P/E ratio of 66.47, a PEG ratio of 2.52 and a beta of 1.60. The firm's 50-day simple moving average is $198.12 and its 200 day simple moving average is $172.31.

Arista Networks (NYSE:ANET - Get Free Report) last posted its quarterly earnings data 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. The company had revenue of $3.04 billion during the quarter, compared to analyst estimates of $2.83 billion. Arista Networks had a net margin of 38.37% and a return on equity of 30.65%. The business's revenue for the quarter was up 37.7% on a year-over-year basis. During the same quarter last year, the firm posted $0.73 EPS. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. As a group, equities analysts anticipate that Arista Networks, Inc. will post 3.78 EPS for the current fiscal year.

Institutional Trading of Arista Networks

Several institutional investors and hedge funds have recently added to or reduced their stakes in ANET. RTD Financial Advisors Inc. acquired a new stake in Arista Networks during the 3rd quarter worth about $358,000. Gallagher Capital Advisors LLC purchased a new position in Arista Networks during the 3rd quarter valued at about $3,256,000. Armstrong Advisory Group Inc. increased its holdings in shares of Arista Networks by 23.8% in the 3rd quarter. Armstrong Advisory Group Inc. now owns 1,550 shares of the technology company's stock valued at $316,000 after purchasing an additional 298 shares during the period. Marquette Asset Management LLC increased its holdings in shares of Arista Networks by 10,000.0% in the 3rd quarter. Marquette Asset Management LLC now owns 1,414 shares of the technology company's stock valued at $288,000 after purchasing an additional 1,400 shares during the period. Finally, Gilpin Wealth Management LLC acquired a new position in shares of Arista Networks in the 3rd quarter valued at about $741,000. 82.47% of the stock is owned by institutional investors and hedge funds.

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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