Arista Networks (NYSE:ANET) Stock Price Up 3.4% Following Strong Earnings

Arista Networks, Inc. (NYSE:ANET) rose 3.4% on Tuesday following a stronger than expected earnings report. The stock traded as high as $194.35 and last traded at $191.2120. 13,241,490 shares were traded during trading, an increase of 54% from the average daily volume of 8,611,916 shares. The stock had previously closed at $184.89.

The technology company reported $1.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $0.13. Arista Networks had a net margin of 38.32% and a return on equity of 30.10%. The company had revenue of $3.04 billion for the quarter, compared to analysts’ expectations of $2.83 billion. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. Weiss Ratings cut shares of Arista Networks from a “buy (b)” rating to a “buy (b-)” rating in a research note on Wednesday, July 29th. Needham & Company LLC raised their target price on shares of Arista Networks from $185.00 to $200.00 and gave the stock a “buy” rating in a research note on Wednesday, July 22nd. JPMorgan Chase & Co. boosted their target price on Arista Networks from $190.00 to $200.00 and gave the stock an “overweight” rating in a report on Thursday, April 16th. Barclays restated an “overweight” rating and issued a $195.00 price target (up from $184.00) on shares of Arista Networks in a research report on Thursday, May 7th. Finally, Piper Sandler reiterated an “overweight” rating and set a $181.00 price objective (up from $175.00) on shares of Arista Networks in a research report on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Buy” and a consensus price target of $189.74.

Insiders Place Their Bets

In other news, insider Kenneth Duda sold 32,000 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $140.08, for a total value of $4,482,560.00. Following the completion of the sale, the insider owned 12,976 shares of the company’s stock, valued at $1,817,678.08. This represents a 71.15% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jayshree Ullal sold 242,422 shares of the firm’s stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $188.17, for a total transaction of $45,616,547.74. Following the sale, the chief executive officer owned 5,171,095 shares of the company’s stock, valued at $973,044,946.15. This represents a 4.48% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 2,300,316 shares of company stock valued at $382,160,575 over the last ninety days. Company insiders own 2.70% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Sankala Group LLC purchased a new position in shares of Arista Networks during the 4th quarter worth $27,000. Prosperity Bancshares Inc acquired a new stake in shares of Arista Networks during the fourth quarter valued at about $28,000. Main Street Group LTD purchased a new stake in shares of Arista Networks in the 1st quarter valued at approximately $26,000. Quarry LP acquired a new position in shares of Arista Networks in the 3rd quarter worth approximately $33,000. Finally, Ameliora Wealth Management Ltd. acquired a new stake in Arista Networks in the 4th quarter valued at approximately $30,000. 82.47% of the stock is currently owned by hedge funds and other institutional investors.

Arista Networks Price Performance

The business has a 50 day simple moving average of $168.02 and a 200 day simple moving average of $150.69. The company has a market capitalization of $240.77 billion, a price-to-earnings ratio of 65.48, a PEG ratio of 2.77 and a beta of 1.60.

Arista Networks Company Profile

Arista Networks, Inc is a technology company that designs and sells cloud networking solutions for large-scale data centers and enterprise environments. The company is best known for its high-performance switching and routing platforms, which are used to build scalable, low-latency networks for cloud service providers, internet companies, financial services, telecommunications, and enterprise IT. Arista’s offerings emphasize programmability, automation and telemetry to support modern, software-driven network architectures.

Central to Arista’s product portfolio is its Extensible Operating System (EOS), a modular network operating system that provides consistent programmability, stateful control and advanced visibility across the company’s hardware platforms.