Arista Networks, Inc. (NYSE:ANET) Receives Average Rating of “Buy” from Analysts

Shares of Arista Networks, Inc. (NYSE:ANET) have received a consensus recommendation of “Buy” from the twenty-three research firms that are covering the company, MarketBeat reports. One research analyst has rated the stock with a hold rating, twenty have given a buy rating and two have issued a strong buy rating on the company. The average 1 year price target among analysts that have covered the stock in the last year is $227.80.

Several brokerages recently commented on ANET. TD Cowen raised their target price on Arista Networks from $210.00 to $250.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Raymond James Financial raised shares of Arista Networks from a “market perform” rating to an “outperform” rating and set a $164.00 price target on the stock in a research note on Friday, May 15th. Needham & Company LLC reissued a “buy” rating and issued a $260.00 price objective (up from $200.00) on shares of Arista Networks in a research report on Wednesday, August 5th. Evercore restated an “outperform” rating on shares of Arista Networks in a research note on Thursday. Finally, Zacks Research upgraded Arista Networks from a “hold” rating to a “strong-buy” rating in a report on Monday, August 10th.

Arista Networks Trading Up 5.7%

NYSE:ANET opened at $199.78 on Friday. The firm’s fifty day simple moving average is $185.90 and its 200 day simple moving average is $162.09. Arista Networks has a twelve month low of $114.52 and a twelve month high of $214.89. The firm has a market capitalization of $251.97 billion, a price-to-earnings ratio of 63.02, a PEG ratio of 2.25 and a beta of 1.62.

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

Trending Headlines about Arista Networks

Here are the key news stories impacting Arista Networks this week:

• Positive Sentiment: Analysts highlighted Arista as a key beneficiary of rising AI capital spending, since its high-speed Ethernet switches and networking systems connect GPUs and help hyperscale data centers manage increasing workloads. AI Capex Creates New Investment Cycle
• Positive Sentiment: Arista’s shares benefited from a broader rally in technology and networking stocks, alongside Ciena and Cisco, suggesting renewed investor appetite for AI infrastructure exposure. Ciena, Arista and Cisco Rally
• Positive Sentiment: The company’s latest quarterly results exceeded expectations, with revenue rising 37.7% year over year and earnings surpassing consensus estimates. Analysts maintain a generally favorable view, with a consensus price target above recent trading levels.
• Neutral Sentiment: Director Mark Templeton sold 5,000 shares for approximately $985,800 under a pre-arranged Rule 10b5-1 trading plan. Because the sale was scheduled in advance and he retained more than 53,000 shares, it is a limited signal about operating prospects. Mark Templeton Sells Arista Shares
• Negative Sentiment: Investors remain concerned that roughly $9.7 billion in AI-related commitments could take as long as 18 months to translate into recognized revenue because of power, cooling and customer-acceptance constraints. Arista’s elevated valuation increases the risk of volatility if growth is delayed. Arista’s AI Commitments and Revenue Timing

Insider Activity

In other Arista Networks news, major shareholder Andreas Bechtolsheim sold 300,000 shares of the stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $202.60, for a total transaction of $60,780,000.00. Following the sale, the insider directly owned 180,843,048 shares of the company’s stock, valued at approximately $36,638,801,524.80. This represents a 0.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Templeton sold 5,000 shares of the stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $197.16, for a total value of $985,800.00. Following the completion of the sale, the director directly owned 53,410 shares in the company, valued at $10,530,315.60. This represents a 8.56% decrease in their ownership of the stock. 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 a total of 3,787,694 shares of company stock valued at $727,713,987 over the last three months. Company insiders own 2.70% of the company’s stock.

Institutional Investors Weigh In On Arista Networks

Several large investors have recently modified their holdings of the stock. ABS Investment Management LLC purchased a new position in Arista Networks in the 2nd quarter worth about $29,000. ABS Direct Equity Fund LLC acquired a new position in Arista Networks in the 2nd quarter worth approximately $29,000. Kelleher Financial Advisors acquired a new position in Arista Networks in the 2nd quarter worth approximately $31,000. Cornerstone Financial Management LLC grew its position in Arista Networks by 61.9% during the 2nd quarter. Cornerstone Financial Management LLC now owns 183 shares of the technology company’s stock worth $31,000 after purchasing an additional 70 shares in the last quarter. Finally, Sankala Group LLC acquired a new stake in Arista Networks during the 4th quarter valued at $27,000. 82.47% of the stock is owned by 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.