Arista Networks, Inc. (NYSE:ANET) Downgraded by Zacks Investment Research to “Hold”
Zacks Investment Research cut shares of Arista Networks, Inc. (NYSE:ANET) from a buy rating to a hold rating in a report released on Thursday.
According to Zacks, “Arista is a dominant name in the data center networking market. The company’s strategy of leveraging merchant silicon from multiple suppliers has expanded product portfolio and increased its ability to offer products at cheaper prices. Moreover, ample cash balance provides it the flexibility required to pursue any growth strategy, whether by way of acquisitions or otherwise. The company has outperformed the industry on a year-to-date basis. However, the lawsuits with Cisco have been a major distraction for the company. It has been forced to bring much of its manufacturing in the U.S., which along with redesigning of products have not only increased lead-times but also hurt gross margin. Notably, the company has been barred to import products in the U.S. by International Trade Commission (ITC). We note that a ban on Arista products surely gives a competitive edge to Cisco at least in the near term. “
Other equities research analysts have also recently issued reports about the company. Gabelli reiterated a buy rating on shares of Arista Networks in a report on Sunday, April 2nd. CIBC reiterated a buy rating and issued a $160.00 target price on shares of Arista Networks in a report on Friday, May 5th. Stifel Nicolaus cut Arista Networks from a buy rating to a hold rating and upped their target price for the stock from $130.00 to $135.00 in a report on Monday, April 3rd. They noted that the move was a valuation call. Oppenheimer Holdings, Inc. set a $160.00 target price on Arista Networks and gave the stock a buy rating in a report on Thursday, May 4th. Finally, Cowen and Company upped their target price on Arista Networks from $123.00 to $145.00 and gave the stock an outperform rating in a report on Monday, May 15th. Eighteen analysts have rated the stock with a hold rating and fifteen have given a buy rating to the company’s stock. The company presently has a consensus rating of Hold and a consensus target price of $140.00.
Arista Networks (NYSE:ANET) opened at 150.40 on Thursday. Arista Networks has a 12-month low of $68.75 and a 12-month high of $162.97. The firm has a 50-day moving average price of $153.42 and a 200-day moving average price of $132.23. The company has a market cap of $10.83 billion, a P/E ratio of 48.58 and a beta of 1.35.
Arista Networks (NYSE:ANET) last posted its quarterly earnings data on Thursday, May 4th. The technology company reported $0.79 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.70 by $0.09. Arista Networks had a return on equity of 20.94% and a net margin of 18.95%. The company had revenue of $335.48 million during the quarter, compared to analysts’ expectations of $326.19 million. During the same quarter in the previous year, the business earned $0.68 EPS. Arista Networks’s revenue was up 38.5% compared to the same quarter last year. On average, equities research analysts forecast that Arista Networks will post $3.96 earnings per share for the current fiscal year.
In other news, insider Jayshree Ullal sold 140,696 shares of the stock in a transaction dated Thursday, May 11th. The stock was sold at an average price of $145.17, for a total value of $20,424,838.32. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, SVP Kenneth Duda sold 10,507 shares of the stock in a transaction dated Tuesday, May 9th. The shares were sold at an average price of $144.23, for a total value of $1,515,424.61. Following the completion of the transaction, the senior vice president now directly owns 811 shares in the company, valued at $116,970.53. The disclosure for this sale can be found here. Insiders have sold a total of 646,962 shares of company stock worth $98,102,398 over the last ninety days. 28.09% of the stock is currently owned by corporate insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in the stock. LS Investment Advisors LLC acquired a new position in Arista Networks during the second quarter worth approximately $119,000. SG Americas Securities LLC acquired a new position in Arista Networks during the first quarter worth approximately $164,000. Financial Architects Inc raised its position in Arista Networks by 232.0% in the first quarter. Financial Architects Inc now owns 1,255 shares of the technology company’s stock worth $166,000 after buying an additional 877 shares in the last quarter. Daiwa Securities Group Inc. acquired a new position in Arista Networks during the second quarter worth approximately $202,000. Finally, Parametrica Management Ltd acquired a new position in Arista Networks during the second quarter worth approximately $229,000. 60.98% of the stock is currently owned by institutional investors and hedge funds.
About Arista Networks
Arista Networks, Inc is a supplier of cloud networking solutions that use software innovations to address the needs of Internet companies, cloud service providers and data centers for enterprise support. It develops, markets and sells cloud networking solutions, which consist of its Gigabit Ethernet switches and related software.
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