Arista Networks (NYSE:ANET) Stock Price Down 1.1% – Here’s Why

Arista Networks, Inc. (NYSE:ANET)’s stock price dropped 1.1% on Tuesday. The stock traded as low as $201.35 and last traded at $202.5950. Approximately 4,533,930 shares were traded during mid-day trading, a decline of 44% from the average daily volume of 8,037,620 shares. The stock had previously closed at $204.92.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the stock. Jefferies Financial Group set a $250.00 price objective on shares of Arista Networks in a report on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft started coverage on Arista Networks in a research report on Monday, August 31st. They issued a “buy” rating and a $220.00 target price for the company. Wolfe Research reaffirmed an “outperform” rating and set a $175.00 price target on shares of Arista Networks in a research note on Wednesday, June 10th. KeyCorp reaffirmed an “overweight” rating and set a $250.00 target price (up from $200.00) on shares of Arista Networks in a research note on Wednesday, August 5th. Finally, Bank of America reaffirmed 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. Two equities research analysts have rated the stock with a Strong Buy rating and twenty have issued a Buy rating to the company’s stock. Based on data from MarketBeat, Arista Networks has a consensus rating of “Buy” and a consensus price target of $230.74.

Arista Networks Price Performance

The company has a market cap of $255.52 billion, a P/E ratio of 63.91, a PEG ratio of 2.45 and a beta of 1.62. The company has a fifty day simple moving average of $191.41 and a 200-day simple moving average of $167.59.

Arista Networks (NYSE:ANET) last released its quarterly earnings data on Tuesday, August 4th. The technology company reported $1.02 earnings per share for the quarter, topping the consensus estimate of $0.89 by $0.13. The business had revenue of $3.04 billion during the quarter, compared to analyst estimates of $2.83 billion. Arista Networks had a return on equity of 30.65% and a net margin of 38.37%.The company’s revenue was up 37.7% compared to the same quarter last year. During the same period last year, the company posted $0.73 EPS. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. On average, analysts anticipate that Arista Networks, Inc. will post 3.7 EPS for the current year.

Insiders Place Their Bets

In other Arista Networks news, major shareholder Andreas Bechtolsheim sold 300,000 shares of the business’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $203.30, for a total transaction of $60,990,000.00. Following the sale, the insider owned 181,143,048 shares in the company, valued at approximately $36,826,381,658.40. The trade was a 0.17% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jayshree Ullal sold 767,029 shares of the company’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $201.22, for a total transaction of $154,341,575.38. Following the sale, the chief executive officer directly owned 16,387,981 shares of the company’s stock, valued at $3,297,589,536.82. This represents a 4.47% 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. Insiders sold a total of 3,827,694 shares of company stock valued at $745,740,910 in the last quarter. 2.70% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Arista Networks

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. QRG Capital Management Inc. lifted its holdings in shares of Arista Networks by 181.2% in the second quarter. QRG Capital Management Inc. now owns 523,202 shares of the technology company’s stock valued at $88,882,000 after purchasing an additional 337,133 shares in the last quarter. Envestnet Portfolio Solutions Inc. grew its holdings in shares of Arista Networks by 165.9% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 159,817 shares of the technology company’s stock valued at $27,150,000 after buying an additional 99,707 shares in the last quarter. Envestnet Asset Management Inc. raised its position in Arista Networks by 199.0% during the second quarter. Envestnet Asset Management Inc. now owns 9,630,196 shares of the technology company’s stock valued at $1,635,978,000 after buying an additional 6,409,612 shares during the period. Andra AP fonden raised its position in Arista Networks by 106.2% during the second quarter. Andra AP fonden now owns 515,400 shares of the technology company’s stock valued at $87,556,000 after buying an additional 265,400 shares during the period. Finally, State Street Corp lifted its stake in Arista Networks by 159.4% in the 2nd quarter. State Street Corp now owns 121,303,125 shares of the technology company’s stock worth $20,606,975,000 after acquiring an additional 74,541,134 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 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.