Arista Networks (NYSE:ANET) Stock Price Down 2.7% on Disappointing Earnings

Arista Networks, Inc. (NYSE:ANET) shares were down 2.7% during mid-day trading on Tuesday following a dissappointing earnings announcement. The company traded as low as $150.99 and last traded at $153.4070. Approximately 8,399,948 shares changed hands during mid-day trading, a decline of 16% from the average daily volume of 9,984,020 shares. The stock had previously closed at $157.59.

The technology company reported $0.67 earnings per share for the quarter, missing the consensus estimate of $0.72 by ($0.05). Arista Networks had a return on equity of 31.05% and a net margin of 40.90%. Arista Networks has set its Q4 2025 guidance at EPS.

Analysts Set New Price Targets

Several research analysts have recently weighed in on ANET shares. BNP Paribas raised Arista Networks from a “hold” rating to an “outperform” rating in a research report on Thursday, September 25th. Barclays upped their target price on Arista Networks from $151.00 to $179.00 and gave the stock an “overweight” rating in a report on Friday, September 12th. BNP Paribas Exane upgraded Arista Networks from a “neutral” rating to an “outperform” rating and set a $172.00 target price on the stock in a report on Thursday, September 25th. Morgan Stanley set a $171.00 target price on Arista Networks and gave the stock an “overweight” rating in a report on Friday, October 10th. Finally, Rosenblatt Securities upped their target price on Arista Networks from $125.00 to $140.00 and gave the stock a “neutral” rating in a report on Friday, September 12th. Nineteen analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, Arista Networks has a consensus rating of “Moderate Buy” and a consensus target price of $163.94.

Insider Buying and Selling at Arista Networks

In other news, CEO Jayshree Ullal sold 1,247,688 shares of the company’s stock in a transaction that occurred on Wednesday, September 10th. The stock was sold at an average price of $148.53, for a total value of $185,319,098.64. Following the transaction, the chief executive officer owned 5,383,207 shares of the company’s stock, valued at approximately $799,567,735.71. This represents a 18.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Charles H. Giancarlo sold 8,000 shares of the company’s stock in a transaction that occurred on Wednesday, October 1st. The shares were sold at an average price of $147.49, for a total value of $1,179,920.00. Following the completion of the transaction, the director directly owned 41,784 shares in the company, valued at $6,162,722.16. The trade was a 16.07% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 4,325,040 shares of company stock worth $611,632,257 over the last 90 days. Company insiders own 3.39% of the company’s stock.

Hedge Funds Weigh In On Arista Networks

Several institutional investors and hedge funds have recently made changes to their positions in ANET. Bare Financial Services Inc grew its position in shares of Arista Networks by 2,118.2% in the second quarter. Bare Financial Services Inc now owns 244 shares of the technology company’s stock valued at $25,000 after purchasing an additional 233 shares during the last quarter. AdvisorNet Financial Inc grew its position in shares of Arista Networks by 56.7% in the third quarter. AdvisorNet Financial Inc now owns 199 shares of the technology company’s stock valued at $29,000 after purchasing an additional 72 shares during the last quarter. Cloud Capital Management LLC acquired a new position in shares of Arista Networks in the first quarter valued at approximately $30,000. Richardson Financial Services Inc. grew its position in shares of Arista Networks by 141.3% in the third quarter. Richardson Financial Services Inc. now owns 222 shares of the technology company’s stock valued at $32,000 after purchasing an additional 130 shares during the last quarter. Finally, Saudi Central Bank acquired a new position in shares of Arista Networks in the first quarter valued at approximately $33,000. Institutional investors and hedge funds own 82.47% of the company’s stock.

Arista Networks Price Performance

The firm has a 50-day moving average price of $146.21 and a 200 day moving average price of $118.11. The company has a market cap of $192.81 billion, a price-to-earnings ratio of 60.34, a P/E/G ratio of 3.37 and a beta of 1.47.

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.