Arista Networks (NYSE:ANET) Shares Down 5.9% – Here’s What Happened

Arista Networks, Inc. (NYSE:ANET)’s share price dropped 5.9% on Monday . The stock traded as low as $186.11 and last traded at $187.8330. 5,650,798 shares traded hands during mid-day trading, a decline of 31% from the average daily volume of 8,218,238 shares. The stock had previously closed at $199.59.

Analyst Ratings Changes

Several research firms recently commented on ANET. Truist Financial upped their price target on shares of Arista Networks from $175.00 to $234.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Jefferies Financial Group set a $250.00 target price on Arista Networks in a research note on Wednesday, August 5th. Wells Fargo & Company reaffirmed an “overweight” rating and set a $255.00 price objective (up from $200.00) on shares of Arista Networks in a report on Wednesday, August 5th. Wolfe Research restated an “outperform” rating and set a $175.00 target price on shares of Arista Networks in a research report on Wednesday, June 10th. Finally, The Goldman Sachs Group reiterated a “buy” rating and issued a $225.00 price objective on shares of Arista Networks in a research note on Wednesday, August 5th. Two research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus price target of $227.80.

Arista Networks Stock Up 2.7%

The firm’s 50 day moving average is $186.73 and its 200-day moving average is $163.18. The firm has a market cap of $243.19 billion, a PE ratio of 60.83, a P/E/G ratio of 2.23 and a beta of 1.62.

Arista Networks (NYSE:ANET) last issued its earnings results on Tuesday, August 4th. The technology company reported $1.02 earnings per share for the quarter, beating analysts’ consensus estimates of $0.89 by $0.13. Arista Networks had a return on equity of 30.65% and a net margin of 38.37%.The firm had revenue of $3.04 billion for the quarter, compared to analysts’ expectations of $2.83 billion. During the same quarter last year, the firm earned $0.73 earnings per share. The firm’s revenue for the quarter was up 37.7% compared to the same quarter last year. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. On average, analysts forecast that Arista Networks, Inc. will post 3.7 earnings per share for the current year.

Insider Buying and Selling

In other Arista Networks news, CEO Jayshree Ullal sold 767,029 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $201.22, for a total value of $154,341,575.38. Following the completion of the sale, the chief executive officer owned 16,387,981 shares of the company’s stock, valued at $3,297,589,536.82. This trade represents a 4.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Andreas Bechtolsheim sold 300,000 shares of the business’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $203.30, for a total transaction of $60,990,000.00. Following the transaction, the insider directly owned 181,143,048 shares in the company, valued at approximately $36,826,381,658.40. The trade was a 0.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 3,527,694 shares of company stock valued at $684,665,787. 2.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On Arista Networks

Several institutional investors and hedge funds have recently made changes to their positions in ANET. Cherry Tree Wealth Management LLC grew its position in shares of Arista Networks by 1,383.2% during the second quarter. Cherry Tree Wealth Management LLC now owns 4,420 shares of the technology company’s stock worth $751,000 after buying an additional 4,122 shares in the last quarter. Talon Private Wealth LLC acquired a new stake in Arista Networks in the second quarter valued at $232,000. ABS Direct Equity Fund LLC acquired a new stake in Arista Networks in the second quarter valued at $29,000. Bouchey Financial Group Ltd. raised its holdings in Arista Networks by 17.1% in the second quarter. Bouchey Financial Group Ltd. now owns 1,787 shares of the technology company’s stock valued at $304,000 after acquiring an additional 261 shares in the last quarter. Finally, Capstone Financial Advisors Inc. bought a new position in Arista Networks during the 2nd quarter valued at $207,000. 82.47% of the stock is currently owned by hedge funds and other institutional investors.

Arista Networks Company Profile

Arista Networks, Inc designs, develops and sells cloud networking solutions for large data centers, cloud service providers, internet companies, enterprises and other organizations. Its portfolio includes high-performance Ethernet switches, routers and wireless networking products used to connect servers, storage systems, users and applications across data center and campus environments.

The company’s software offerings include Arista EOS, its Linux-based network operating system, and CloudVision, a cloud-based platform for network management, automation, monitoring and analytics.