Arista Networks (NYSE:ANET) Shares Down 19.1% – Here’s Why

Shares of Arista Networks, Inc. (NYSE:ANET) fell 19.1% during trading on Monday . The company traded as low as $104.52 and last traded at $104.48. 10,871,015 shares were traded during mid-day trading, an increase of 61% from the average session volume of 6,738,225 shares. The stock had previously closed at $129.17.

Analyst Ratings Changes

A number of research analysts recently commented on the company. Wells Fargo & Company upped their target price on Arista Networks from $97.50 to $115.00 and gave the company an “overweight” rating in a research note on Wednesday, October 30th. The Goldman Sachs Group increased their price objective on shares of Arista Networks from $120.00 to $135.00 and gave the company a “buy” rating in a research note on Friday, January 17th. StockNews.com lowered shares of Arista Networks from a “buy” rating to a “hold” rating in a research report on Thursday, December 12th. Evercore ISI upped their price target on Arista Networks from $110.00 to $130.00 and gave the company an “outperform” rating in a research report on Friday, January 17th. Finally, Rosenblatt Securities raised their price objective on shares of Arista Networks from $66.25 to $80.00 and gave the stock a “sell” rating in a report on Friday, November 8th. One analyst has rated the stock with a sell rating, four have issued a hold rating and thirteen have assigned a buy rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $105.83.

Arista Networks Stock Performance

The company has a market capitalization of $124.55 billion, a price-to-earnings ratio of 47.53, a price-to-earnings-growth ratio of 3.49 and a beta of 1.08. The company has a 50-day moving average price of $110.68 and a 200-day moving average price of $98.26.

Arista Networks (NYSE:ANET) last announced its quarterly earnings results on Thursday, November 7th. The technology company reported $0.60 earnings per share for the quarter, topping analysts’ consensus estimates of $0.52 by $0.08. The company had revenue of $1.81 billion for the quarter, compared to analysts’ expectations of $1.76 billion. Arista Networks had a net margin of 40.29% and a return on equity of 30.52%. The business’s quarterly revenue was up 20.0% compared to the same quarter last year. During the same period last year, the firm posted $0.41 earnings per share. As a group, sell-side analysts anticipate that Arista Networks, Inc. will post 1.97 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Charles H. Giancarlo sold 8,000 shares of the company’s stock in a transaction on Friday, November 1st. The shares were sold at an average price of $98.30, for a total value of $786,360.00. Following the completion of the transaction, the director now directly owns 179,784 shares of the company’s stock, valued at approximately $17,671,868.28. This represents a 4.26 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Jayshree Ullal sold 3,328 shares of Arista Networks stock in a transaction dated Monday, November 4th. The shares were sold at an average price of $99.35, for a total value of $330,628.48. Following the completion of the sale, the chief executive officer now directly owns 70,724 shares in the company, valued at $7,026,252.59. This represents a 4.49 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 343,992 shares of company stock worth $37,634,420 over the last ninety days. 3.54% of the stock is currently owned by corporate insiders.

Institutional Trading of Arista Networks

A number of institutional investors have recently made changes to their positions in the business. Meritage Portfolio Management lifted its position in Arista Networks by 290.6% during the 4th quarter. Meritage Portfolio Management now owns 178,351 shares of the technology company’s stock worth $19,713,000 after buying an additional 132,696 shares in the last quarter. Choreo LLC raised its stake in shares of Arista Networks by 404.5% during the 4th quarter. Choreo LLC now owns 25,445 shares of the technology company’s stock worth $2,834,000 after purchasing an additional 20,401 shares in the last quarter. Nvwm LLC boosted its stake in shares of Arista Networks by 288.5% during the 4th quarter. Nvwm LLC now owns 44,620 shares of the technology company’s stock worth $4,932,000 after acquiring an additional 33,134 shares during the period. Money Concepts Capital Corp grew its stake in Arista Networks by 312.1% in the 4th quarter. Money Concepts Capital Corp now owns 3,408 shares of the technology company’s stock valued at $377,000 after buying an additional 2,581 shares during the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. increased its stake in shares of Arista Networks by 425.6% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 219,908 shares of the technology company’s stock worth $24,742,000 after purchasing an additional 178,068 shares during the period. Institutional investors own 82.47% of the company’s stock.

Arista Networks Company Profile

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.