Arista Networks (NYSE:ANET) Trading Down 4.4% Following Insider Selling

Arista Networks, Inc. (NYSE:ANET) was down 4.4% on Tuesday after an insider sold shares in the company. The company traded as low as $98.42 and last traded at $97.86. Approximately 2,107,657 shares traded hands during mid-day trading, a decline of 77% from the average daily volume of 9,060,900 shares. The stock had previously closed at $102.31.

Specifically, CEO Jayshree Ullal sold 104,707 shares of Arista Networks stock in a transaction dated Thursday, June 26th. The stock was sold at an average price of $102.03, for a total transaction of $10,683,255.21. Following the completion of the sale, the chief executive officer directly owned 38,776 shares in the company, valued at $3,956,315.28. The trade was a 72.98% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Jayshree Ullal sold 13,075 shares of the stock in a transaction that occurred on Thursday, June 26th. The stock was sold at an average price of $102.03, for a total value of $1,334,042.25. Following the completion of the transaction, the chief executive officer owned 103,608 shares in the company, valued at $10,571,124.24. This represents a 11.21% decrease in their position. The disclosure for this sale can be found here.

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. KGI Securities downgraded shares of Arista Networks to a “neutral” rating in a research report on Wednesday, May 7th. Morgan Stanley upped their price objective on shares of Arista Networks from $73.00 to $100.00 and gave the stock an “overweight” rating in a report on Thursday, May 1st. BNP Paribas lowered Arista Networks from a “strong-buy” rating to a “hold” rating in a report on Wednesday, June 11th. KeyCorp began coverage on Arista Networks in a research report on Thursday, June 26th. They issued an “overweight” rating and a $115.00 price target for the company. Finally, Erste Group Bank lowered Arista Networks from a “strong-buy” rating to a “hold” rating in a report on Monday, March 17th. Seven investment analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $109.33.

Arista Networks Stock Down 4.1%

The stock’s 50-day moving average price is $90.69 and its 200 day moving average price is $95.44. The firm has a market cap of $123.22 billion, a price-to-earnings ratio of 41.42, a price-to-earnings-growth ratio of 2.90 and a beta of 1.37.

Arista Networks (NYSE:ANET) last announced its quarterly earnings data on Tuesday, May 6th. The technology company reported $0.65 EPS for the quarter, topping analysts’ consensus estimates of $0.59 by $0.06. Arista Networks had a return on equity of 30.48% and a net margin of 40.72%. The company had revenue of $2 billion during the quarter, compared to the consensus estimate of $1.97 billion. During the same quarter last year, the company earned $0.50 EPS. The company’s quarterly revenue was up 27.6% on a year-over-year basis. On average, research analysts predict that Arista Networks, Inc. will post 2.2 EPS for the current year.

Arista Networks announced that its board has authorized a share buyback program on Tuesday, May 6th that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the technology company to reacquire up to 1.3% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Arista Networks

Several institutional investors and hedge funds have recently bought and sold shares of ANET. HighMark Wealth Management LLC increased its stake in Arista Networks by 179.7% in the first quarter. HighMark Wealth Management LLC now owns 358 shares of the technology company’s stock valued at $28,000 after acquiring an additional 230 shares during the period. Quarry LP grew its position in Arista Networks by 381.5% during the 4th quarter. Quarry LP now owns 260 shares of the technology company’s stock worth $29,000 after acquiring an additional 206 shares during the last quarter. Dunhill Financial LLC increased its holdings in Arista Networks by 415.7% during the 4th quarter. Dunhill Financial LLC now owns 263 shares of the technology company’s stock valued at $29,000 after purchasing an additional 212 shares in the last quarter. Cloud Capital Management LLC acquired a new stake in Arista Networks during the 1st quarter valued at $30,000. Finally, Saudi Central Bank bought a new position in Arista Networks in the 1st quarter valued at $33,000. Institutional investors own 82.47% of the company’s stock.

About Arista Networks

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.