Arista Networks (NYSE:ANET) Stock Price Up 6.4% – Still a Buy?

Arista Networks, Inc. (NYSE:ANET)’s share price rose 6.4% on Wednesday. The company traded as high as $199.46 and last traded at $196.8110. Approximately 8,358,520 shares changed hands during mid-day trading, an increase of 5% from the average daily volume of 7,934,457 shares. The stock had previously closed at $185.02.

Recent Arista Networks Headlines

Here are a few of the latest headlines about ANET:

• Positive Sentiment: Arista forecast fourth-quarter revenue of $3.9 billion to $4.0 billion, and its fiscal 2027 revenue outlook is approximately $18.5 billion. The outlook reinforces expectations for continued demand for networking equipment as AI data centers expand. Arista Networks Stocks Climb as AI Cloud Rebound Lifts Networking Leader
• Positive Sentiment: KeyCorp raised its earnings forecasts across fiscal 2026 and 2027, including its 2027 estimate to $6.02 per share from $4.77, and maintained an Overweight rating with a $250 price target. KeyCorp raises Arista Networks earnings estimates
• Neutral Sentiment: Major shareholder Andreas Bechtolsheim sold 260,000 shares under a pre-arranged Rule 10b5-1 plan. The sale may attract attention, but represented only about 0.14% of his holdings. Arista Networks major shareholder sale

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on ANET shares. UBS Group restated a “buy” rating and set a $291.00 price objective (up from $259.00) on shares of Arista Networks in a report on Wednesday, November 4th. TD Cowen reduced their target price on shares of Arista Networks from $250.00 to $205.00 and set a “buy” rating for the company in a research note on Monday, October 19th. Rosenblatt Securities reissued a “buy” rating and set a $280.00 target price on shares of Arista Networks in a research report on Wednesday, November 4th. Needham & Company LLC restated a “buy” rating and set a $260.00 price target on shares of Arista Networks in a research note on Wednesday, November 4th. Finally, The Goldman Sachs Group restated a “buy” rating and set a $225.00 price target on shares of Arista Networks in a research note on Wednesday, August 5th. Four equities research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Buy” and an average price target of $240.24.

Arista Networks Price Performance

The stock has a market cap of $248.65 billion, a P/E ratio of 52.91, a PEG ratio of 1.67 and a beta of 1.61. The business’s 50 day simple moving average is $192.19 and its 200 day simple moving average is $166.23.

Arista Networks (NYSE:ANET) last released its quarterly earnings data on Tuesday, November 3rd. The technology company reported $1.20 earnings per share for the quarter, beating the consensus estimate of $1.08 by $0.12. Arista Networks had a return on equity of 32.20% and a net margin of 39.97%. The company had revenue of $3.66 billion for the quarter, compared to analyst estimates of $3.33 billion. During the same period in the prior year, the company posted $0.75 EPS. The company’s revenue was up 58.5% compared to the same quarter last year. Research analysts predict that Arista Networks, Inc. will post 3.99 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Kenneth Duda sold 17,333 shares of the business’s stock in a transaction on Tuesday, October 20th. The stock was sold at an average price of $180.91, for a total value of $3,135,713.03. Following the sale, the insider owned 12,976 shares of the company’s stock, valued at $2,347,488.16. The trade was a 57.19% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Chantelle Breithaupt sold 1,224 shares of the company’s stock in a transaction on Tuesday, October 6th. The shares were sold at an average price of $215.00, for a total value of $263,160.00. Following the completion of the sale, the chief financial officer owned 68,697 shares in the company, valued at $14,769,855. This trade represents a 1.75% 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 2,067,489 shares of company stock worth $406,340,373 over the last quarter. Corporate insiders own 2.70% of the company’s stock.

Institutional Investors Weigh In On Arista Networks

Large investors have recently made changes to their positions in the company. Mayflower Financial Advisors LLC increased its holdings in shares of Arista Networks by 4.5% during the third quarter. Mayflower Financial Advisors LLC now owns 3,227 shares of the technology company’s stock worth $657,000 after buying an additional 138 shares in the last quarter. Advisors Asset Management Inc. bought a new position in shares of Arista Networks in the third quarter valued at approximately $23,375,000. Edmond DE Rothschild Holding S.A. raised its stake in shares of Arista Networks by 7.7% in the third quarter. Edmond DE Rothschild Holding S.A. now owns 124,350 shares of the technology company’s stock valued at $25,316,000 after acquiring an additional 8,895 shares during the last quarter. Beta Wealth Group Inc. boosted its holdings in shares of Arista Networks by 6.2% in the 3rd quarter. Beta Wealth Group Inc. now owns 6,800 shares of the technology company’s stock worth $1,384,000 after acquiring an additional 400 shares in the last quarter. Finally, GW&K Investment Management LLC boosted its holdings in shares of Arista Networks by 32.5% in the 3rd quarter. GW&K Investment Management LLC now owns 987 shares of the technology company’s stock worth $201,000 after acquiring an additional 242 shares in the last quarter. Institutional investors own 82.47% of the company’s stock.

About Arista Networks

Arista Networks, Inc. develops software-driven networking products for large data centers, cloud environments, AI workloads, and enterprise campuses. Its offerings include Ethernet switches and routers, along with software and services for managing, monitoring, and securing networks. The company’s software portfolio includes its Extensible Operating System (EOS), which runs across its networking platforms, and CloudVision, a platform for network automation and management. Arista’s products are used by cloud providers, businesses, and other organizations to connect and manage computing infrastructure.