Arista Networks (NYSE:ANET) Shares Down 4.5% - Here's Why

Arista Networks, Inc. (NYSE:ANET - Get Free Report)'s stock price dropped 4.5% on Friday. The company traded as low as $195.26 and last traded at $197.2440. Approximately 8,193,753 shares traded hands during mid-day trading, an increase of 3% from the average daily volume of 7,944,318 shares. The stock had previously closed at $206.63.

More Arista Networks News

Here's some of the latest news about ANET:

• Positive Sentiment: KeyCorp raised its earnings estimates for Arista, while Piper Sandler’s James Fish called the stock a top pick—both signs of continued analyst confidence. KeyCorp boosts earnings estimates Piper Sandler top-pick view
• Neutral Sentiment: Analyst price targets imply potential upside, and Arista is highlighted in a list of high-return-on-equity stocks. These are supportive indicators, though neither guarantees near-term share performance. Analyst price-target outlook
• Negative Sentiment: Some coverage questions whether the stock’s valuation already reflects much of its growth, leaving shares vulnerable when investors reassess the outlook. Valuation after earnings

Analyst Ratings Changes

Several research firms have issued reports on ANET. Wall Street Zen upgraded Arista Networks from a "hold" rating to a "buy" rating in a report on Saturday, November 7th. TD Cowen decreased their target price on shares of Arista Networks from $250.00 to $205.00 and set a "buy" rating for the company in a report on Monday, October 19th. Melius Research set a $305.00 target price on shares of Arista Networks in a research report on Wednesday, November 4th. Evercore restated an "outperform" rating on shares of Arista Networks in a report on Monday, November 2nd. Finally, Morgan Stanley reiterated an "overweight" rating and set a $230.00 price objective (up from $220.00) on shares of Arista Networks in a research report on Wednesday, November 4th. Four equities research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Buy" and a consensus target price of $240.24.

Arista Networks Trading Down 4.5%

The stock has a 50-day simple moving average of $192.77 and a 200 day simple moving average of $166.84. The stock has a market capitalization of $249.20 billion, a price-to-earnings ratio of 53.02, a price-to-earnings-growth ratio of 1.75 and a beta of 1.61.

Arista Networks (NYSE:ANET - Get Free Report) last issued its earnings results on Tuesday, November 3rd. The technology company reported $1.20 earnings per share for the quarter, beating analysts' consensus estimates of $1.08 by $0.12. The company had revenue of $3.66 billion for the quarter, compared to the consensus estimate of $3.33 billion. Arista Networks had a return on equity of 32.20% and a net margin of 39.97%. The firm's quarterly revenue was up 58.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.75 EPS. Sell-side analysts expect that Arista Networks, Inc. will post 4.01 earnings per share for the current fiscal year.

Insider Buying and Selling at Arista Networks

In other Arista Networks news, major shareholder Andreas Bechtolsheim sold 300,000 shares of the company's stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $202.60, for a total value of $60,780,000.00. Following the transaction, the insider owned 180,843,048 shares in the company, valued at approximately $36,638,801,524.80. This represents a 0.17% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Kenneth Duda sold 26,000 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $185.42, for a total transaction of $4,820,920.00. Following the completion of the sale, the insider owned 452,400 shares of the company's stock, valued at approximately $83,884,008. The trade was a 5.43% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 2,067,489 shares of company stock worth $406,340,373. 2.70% of the stock is currently owned by company insiders.

Institutional Trading of Arista Networks

Several hedge funds and other institutional investors have recently modified their holdings of ANET. New World Advisors LLC boosted its position in Arista Networks by 7.6% during the third quarter. New World Advisors LLC now owns 1,484 shares of the technology company's stock valued at $302,000 after purchasing an additional 105 shares during the last quarter. State Board of Administration of Florida Retirement System increased its position in Arista Networks by 8.2% in the 3rd quarter. State Board of Administration of Florida Retirement System now owns 964,944 shares of the technology company's stock worth $196,453,000 after purchasing an additional 73,258 shares during the last quarter. 49 Wealth Management LLC acquired a new position in Arista Networks in the 3rd quarter worth about $275,000. Pinnbrook Capital Management LP raised its stake in shares of Arista Networks by 450.7% during the 3rd quarter. Pinnbrook Capital Management LP now owns 52,319 shares of the technology company's stock worth $10,652,000 after purchasing an additional 42,819 shares in the last quarter. Finally, Mosaic Family Wealth Partners LLC raised its stake in shares of Arista Networks by 3.4% during the 3rd quarter. Mosaic Family Wealth Partners LLC now owns 8,843 shares of the technology company's stock worth $1,800,000 after purchasing an additional 294 shares in the last quarter. 82.47% of the stock is currently owned by hedge funds and other institutional investors.

Arista Networks Company Profile

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.

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