Shares of Arista Networks, Inc. (NYSE: ANET) rose by 1.9% during trading on Thursday, reaching a high of $127.16 before settling at $124.66. Approximately 5,368,286 shares exchanged hands, marking a significant decline of 45% from the average daily volume of 9,793,389 shares. The stock had closed at $122.36 prior to this increase.
Analysts have released a series of reports regarding Arista Networks, which may impact investor sentiment. On November 5, Barclays reaffirmed an “overweight” rating, increasing its price target from $179.00 to $183.00. Melius Research also raised its target price from $160.00 to $185.00, providing a “buy” rating on September 12. Meanwhile, BNP Paribas Exane upgraded the stock from “neutral” to “outperform,” setting a price target of $172.00 on September 25.
In contrast, Weiss Ratings downgraded Arista Networks from a “buy (B-)” to a “hold (C+)” rating on November 6. Additionally, UBS Group maintained a “buy” rating with a target price of $155.00 on December 3. Currently, seventeen analysts have rated the stock as a buy, while six have given it a hold rating. According to data from MarketBeat, Arista Networks holds an average rating of “Moderate Buy” with an average price target of $163.56.
Financial Performance and Insider Activity
On November 4, Arista Networks reported its quarterly earnings, revealing earnings per share (EPS) of $0.75, surpassing the consensus estimate of $0.72 by $0.03. The company generated revenue of $2.31 billion, exceeding analyst expectations of $2.26 billion. Arista Networks experienced a return on equity of 30.28% and a net margin of 39.73%, with quarterly revenue up 27.5% compared to the same period last year. Analysts predict that the company will post an EPS of $2.20 for the current year.
In related developments, Charles H. Giancarlo, a director at Arista, sold 8,000 shares on December 1 at an average price of $128.09, totaling $1,024,720.00. Following this transaction, Giancarlo owns 25,784 shares valued at approximately $3,302,672.56. This sale represents a 23.68% decrease in his stake.
Additionally, CEO Jayshree Ullal sold 24,042 shares on November 25 at an average price of $124.55, amounting to $2,994,431.10. After this sale, Ullal holds 9,917 shares worth around $1,235,162.35. Over the last ninety days, insiders have sold a total of 216,464 shares valued at $28,598,588. Company insiders currently own 3.39% of the stock.
Institutional Investment Trends
Recent movements among institutional investors reflect varying interests in Arista Networks. Mirabella Financial Services LLP increased its stake by 136.8% in the third quarter, now holding 23,688 shares valued at $3,445,000. IFP Advisors Inc raised its holdings by 8.3% during the same period, acquiring 7,659 shares worth $1,116,000.
Further, Swiss Life Asset Management Ltd boosted its stake by 8.8%, now owning 421,851 shares valued at $61,468,000. Other firms, such as Tevis Investment Management and Cantor Fitzgerald L.P., have also increased their positions, indicating a strong institutional interest. Overall, institutional investors hold approximately 82.47% of Arista Networks’ stock.
Arista Networks continues to establish itself as a key player in the technology sector, designing and selling cloud networking solutions for large-scale data centers and enterprise environments. The company is recognized for its high-performance switching and routing platforms, which support scalable, low-latency networks across various industries, including telecommunications and financial services.
