Arista Networks (ANET) Downgraded by Zacks Investment Research to “Hold”

Zacks Investment Research lowered shares of Arista Networks (NYSE:ANET) from a strong-buy rating to a hold rating in a report issued on Tuesday morning, Zacks.com reports.

According to Zacks, “Arista is well positioned with key cloud customers and is focused on expanding its presence across all the verticals. The company continues benefiting from the expanding cloud networking market led by strong demand for scalable infrastructure. Arista aims to sustain revenue growth and healthy cash generation in 2019 and beyond on the back of industry-leading product offerings that enable seamless integration with third-party applications for network management, automation and orchestration. The stock has outperformed the industry in the past year on average. However, Arista faces stiff competition in the cloud networking space, particularly from Cisco. Persistent lawsuits have been a distraction for it. It has been forced to bring down much of manufacturing in the United States, which along with redesigning of products, has led to loss of time and hurt gross margin.”

Several other equities analysts also recently issued reports on the stock. Rosenblatt Securities assumed coverage on shares of Arista Networks in a research note on Friday, March 29th. They set a neutral rating and a $330.00 price objective on the stock. ValuEngine raised shares of Arista Networks from a hold rating to a buy rating in a research note on Thursday, March 21st. Goldman Sachs Group upped their price objective on shares of Arista Networks from $300.00 to $360.00 and gave the company a buy rating in a research note on Thursday, March 21st. Deutsche Bank raised shares of Arista Networks from a sell rating to a hold rating and upped their price objective for the company from $190.00 to $225.00 in a research note on Tuesday, March 19th. Finally, Morgan Stanley upped their price objective on shares of Arista Networks from $265.00 to $300.00 and gave the company an overweight rating in a research note on Thursday, March 7th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and nineteen have given a buy rating to the company’s stock. The company presently has an average rating of Buy and a consensus target price of $299.61.

Shares of NYSE ANET opened at $328.54 on Tuesday. Arista Networks has a 12-month low of $187.08 and a 12-month high of $330.53. The stock has a market capitalization of $24.88 billion, a price-to-earnings ratio of 46.47, a price-to-earnings-growth ratio of 1.97 and a beta of 1.51. The company has a current ratio of 4.48, a quick ratio of 4.04 and a debt-to-equity ratio of 0.02.

Arista Networks (NYSE:ANET) last announced its quarterly earnings results on Thursday, February 14th. The technology company reported $2.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.80 by $0.45. The company had revenue of $595.70 million for the quarter, compared to the consensus estimate of $591.41 million. Arista Networks had a net margin of 29.47% and a return on equity of 29.37%. The company’s revenue for the quarter was up 27.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.71 earnings per share. On average, equities analysts predict that Arista Networks will post 8.24 EPS for the current fiscal year.

In related news, SVP Marc Taxay sold 2,000 shares of the company’s stock in a transaction that occurred on Friday, February 1st. The shares were sold at an average price of $218.11, for a total transaction of $436,220.00. Following the completion of the transaction, the senior vice president now owns 15,367 shares of the company’s stock, valued at $3,351,696.37. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Kenneth Duda sold 11,000 shares of the company’s stock in a transaction that occurred on Monday, February 11th. The stock was sold at an average price of $229.04, for a total transaction of $2,519,440.00. Following the transaction, the senior vice president now directly owns 3,483 shares of the company’s stock, valued at approximately $797,746.32. The disclosure for this sale can be found here. Insiders have sold 219,229 shares of company stock valued at $63,744,447 in the last ninety days. 24.95% of the stock is currently owned by company insiders.

A number of hedge funds have recently modified their holdings of ANET. Larson Financial Group LLC acquired a new stake in shares of Arista Networks in the fourth quarter worth $25,000. FTB Advisors Inc. acquired a new stake in shares of Arista Networks in the fourth quarter worth $26,000. Kaizen Advisory LLC acquired a new stake in shares of Arista Networks in the fourth quarter worth $27,000. CENTRAL TRUST Co increased its position in shares of Arista Networks by 53.3% in the fourth quarter. CENTRAL TRUST Co now owns 141 shares of the technology company’s stock worth $29,000 after acquiring an additional 49 shares in the last quarter. Finally, Capital Investment Advisory Services LLC acquired a new stake in shares of Arista Networks in the fourth quarter worth $39,000. 56.33% of the stock is owned by hedge funds and other institutional investors.

Arista Networks Company Profile

Arista Networks, Inc develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company's cloud networking solutions consist of extensible operating systems, a set of network applications, as well as gigabit Ethernet switching and routing platforms, including universal leaf, spline, and universal spine products.

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