Zacks Investment Research Lowers Arista Networks (ANET) to Hold

Arista Networks (NYSE:ANET) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued 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 analysts have also weighed in on ANET. JMP Securities increased their target price on Arista Networks from $185.00 to $230.00 and gave the stock a “market perform” rating in a research note on Thursday, October 26th. BidaskClub upgraded Arista Networks from a “buy” rating to a “strong-buy” rating in a research note on Tuesday, October 31st. DA Davidson upgraded Arista Networks from a “neutral” rating to a “buy” rating and set a $224.00 target price on the stock in a research note on Friday, November 3rd. Needham & Company LLC reiterated a “buy” rating and issued a $217.00 target price (up previously from $175.00) on shares of Arista Networks in a research note on Friday, November 3rd. They noted that the move was a valuation call. Finally, Royal Bank of Canada increased their target price on Arista Networks from $190.00 to $200.00 and gave the stock a “sector perform” rating in a research note on Friday, November 3rd. Fifteen analysts have rated the stock with a hold rating, eighteen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The stock has a consensus rating of “Buy” and a consensus price target of $230.17.

Arista Networks (NYSE:ANET) traded up $5.17 during mid-day trading on Wednesday, reaching $297.75. The company’s stock had a trading volume of 738,938 shares, compared to its average volume of 863,297. 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 twelve month low of $99.51 and a twelve month high of $299.00. The stock has a market capitalization of $20,800.06, a price-to-earnings ratio of 61.28, a price-to-earnings-growth ratio of 2.19 and a beta of 1.47.

In other news, insider Andreas Bechtolsheim sold 39,680 shares of the firm’s stock in a transaction on Tuesday, November 21st. The stock was sold at an average price of $241.92, for a total transaction of $9,599,385.60. Following the transaction, the insider now owns 73,102 shares in the company, valued at $17,684,835.84. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Jayshree Ullal sold 52,557 shares of the firm’s stock in a transaction dated Thursday, November 16th. The shares were sold at an average price of $231.82, for a total value of $12,183,763.74. Following the sale, the insider now directly owns 3,564 shares in the company, valued at approximately $826,206.48. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 385,683 shares of company stock worth $92,010,804. Insiders own 28.09% of the company’s stock.

Hedge funds have recently modified their holdings of the stock. Bronfman E.L. Rothschild L.P. boosted its position in Arista Networks by 164.5% during the fourth quarter. Bronfman E.L. Rothschild L.P. now owns 484 shares of the technology company’s stock valued at $114,000 after purchasing an additional 301 shares in the last quarter. Fieldpoint Private Securities LLC acquired a new stake in Arista Networks in the third quarter worth about $130,000. PNC Financial Services Group Inc. boosted its holdings in Arista Networks by 20.5% in the second quarter. PNC Financial Services Group Inc. now owns 740 shares of the technology company’s stock worth $111,000 after acquiring an additional 126 shares in the last quarter. Migdal Insurance & Financial Holdings Ltd. acquired a new stake in Arista Networks in the third quarter worth about $151,000. Finally, TRUE Private Wealth Advisors acquired a new stake in Arista Networks in the fourth quarter worth about $210,000. 58.15% of the stock is currently owned by institutional investors.

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Arista Networks Company Profile

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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