Arista Networks (ANET) Lowered to Hold at Zacks Investment Research

Arista Networks (NYSE:ANET) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.

According to Zacks, “Arista is a dominant name in the data center networking market. Shares of the company have outperformed the industry over the past one year. The company’s robust product portfolio remains a key catalyst. Arista is benefiting from strong demand for 100-gigabit routing and switching products, particularly from cloud titans. Management stated that FlexRoute license (almost 150 customers) has helped the company enter additional layers of the spine for routing and data-center interconnect, where Cisco and Juniper were dominant names. Moreover, ample cash balance provides Arista the flexibility required to pursue any growth strategy, whether by way of acquisitions or otherwise. However, Arista faces stiff competition in the cloud networking solutions, particularly in the 10 Gigabit Ethernet and above. Moreover, ongoing lawsuits with Cisco are the primary headwind.”

A number of other brokerages have also issued reports on ANET. Citigroup upped their price target on shares of Arista Networks to $250.00 and gave the company a “buy” rating in a research note on Friday, December 1st. Needham & Company LLC reaffirmed a “buy” rating and issued a $217.00 price objective (up from $175.00) on shares of Arista Networks in a report on Friday, November 3rd. They noted that the move was a valuation call. KeyCorp reaffirmed an “overweight” rating and issued a $240.00 price objective (up from $213.00) on shares of Arista Networks in a report on Thursday, December 14th. Nomura upped their price objective on shares of Arista Networks from $173.00 to $185.00 and gave the company a “neutral” rating in a report on Friday, November 3rd. Finally, BMO Capital Markets upped their price objective on shares of Arista Networks from $190.00 to $205.00 and gave the company a “market perform” rating in a report on Friday, November 3rd. They noted that the move was a valuation call. Fifteen investment analysts have rated the stock with a hold rating, eighteen have given a buy rating and one has issued a strong buy rating to the stock. Arista Networks presently has a consensus rating of “Buy” and an average target price of $223.31.

Arista Networks (NYSE ANET) traded up $10.55 during midday trading on Wednesday, hitting $282.93. 752,327 shares of the company traded hands, compared to its average volume of 828,560. The company has a debt-to-equity ratio of 0.03, a quick ratio of 3.07 and a current ratio of 3.66. Arista Networks has a 1 year low of $95.19 and a 1 year high of $289.07. The company has a market cap of $20,650.00, a price-to-earnings ratio of 58.70, a PEG ratio of 2.04 and a beta of 1.47.

In other Arista Networks news, SVP Marc Taxay sold 2,000 shares of the company’s stock in a transaction on Friday, December 1st. The shares were sold at an average price of $230.09, for a total transaction of $460,180.00. Following the completion of the transaction, the senior vice president now directly owns 12,335 shares in the company, valued at $2,838,160.15. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Kenneth Duda sold 127,576 shares of the company’s stock in a transaction on Tuesday, December 19th. The stock was sold at an average price of $235.15, for a total transaction of $29,999,496.40. The disclosure for this sale can be found here. Insiders have sold 531,746 shares of company stock valued at $124,599,246 over the last 90 days. 28.09% of the stock is currently owned by company insiders.

A number of large investors have recently bought and sold shares of the business. Hermes Investment Management Ltd. bought a new position in shares of Arista Networks in the 3rd quarter valued at approximately $7,316,000. Sapphire Star Partners LP increased its stake in shares of Arista Networks by 56.9% during the third quarter. Sapphire Star Partners LP now owns 3,452 shares of the technology company’s stock worth $654,000 after purchasing an additional 1,252 shares during the period. Sumitomo Mitsui Trust Holdings Inc. increased its stake in shares of Arista Networks by 8.0% during the third quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 142,562 shares of the technology company’s stock worth $27,031,000 after purchasing an additional 10,593 shares during the period. Oregon Public Employees Retirement Fund bought a new position in shares of Arista Networks during the third quarter worth approximately $2,785,000. Finally, CIBC Asset Management Inc increased its stake in shares of Arista Networks by 28.7% during the third quarter. CIBC Asset Management Inc now owns 2,802 shares of the technology company’s stock worth $531,000 after purchasing an additional 624 shares during the period. Institutional investors own 58.11% of the company’s stock.

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About Arista Networks

Arista Networks, Inc is a supplier of cloud networking solutions that use software innovations to address the needs of Internet companies, cloud service providers and data centers for enterprise support. It develops, markets and sells cloud networking solutions, which consist of its Gigabit Ethernet switches and related software.

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