Arista Networks (ANET) Cut 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 report released 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 recently weighed in on ANET. JMP Securities increased their price target on shares of 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 shares of Arista Networks from a “buy” rating to a “strong-buy” rating in a research note on Tuesday, October 31st. DA Davidson upgraded shares of Arista Networks from a “neutral” rating to a “buy” rating and set a $224.00 price target for the company in a research note on Friday, November 3rd. Needham & Company LLC reiterated a “buy” rating and set a $217.00 price target (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 price target on shares of 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 assigned a buy rating and one has given a strong buy rating to the company’s stock. The company has a consensus rating of “Buy” and a consensus price target of $223.31.

Shares of Arista Networks (NYSE:ANET) opened at $264.52 on Wednesday. The firm has a market cap of $20,586.60, a price-to-earnings ratio of 67.70, a P/E/G ratio of 2.17 and a beta of 1.47. 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 52 week low of $97.27 and a 52 week high of $289.07.

In other news, SVP Marc Taxay sold 2,000 shares of the stock in a transaction dated Thursday, February 1st. The shares were sold at an average price of $275.31, for a total value of $550,620.00. Following the completion of the transaction, the senior vice president now owns 12,294 shares in the company, valued at approximately $3,384,661.14. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Jayshree Ullal sold 52,557 shares of the stock in a transaction dated Thursday, November 16th. The shares were sold at an average price of $231.82, for a total transaction of $12,183,763.74. Following the completion of the transaction, the insider now owns 3,564 shares of the company’s stock, valued at approximately $826,206.48. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 458,126 shares of company stock valued at $108,380,024. 28.09% of the stock is owned by insiders.

Several institutional investors and hedge funds have recently made changes to their positions in the company. State Street Corp increased its holdings in shares of Arista Networks by 44.7% in the 2nd quarter. State Street Corp now owns 1,063,294 shares of the technology company’s stock valued at $159,278,000 after purchasing an additional 328,534 shares in the last quarter. First Trust Advisors LP increased its holdings in shares of Arista Networks by 18.5% in the 4th quarter. First Trust Advisors LP now owns 904,279 shares of the technology company’s stock valued at $213,030,000 after purchasing an additional 140,944 shares in the last quarter. Ameriprise Financial Inc. increased its holdings in shares of Arista Networks by 2.9% in the 3rd quarter. Ameriprise Financial Inc. now owns 649,475 shares of the technology company’s stock valued at $123,136,000 after purchasing an additional 18,465 shares in the last quarter. Koch Industries Inc. purchased a new position in shares of Arista Networks in the 2nd quarter valued at about $592,000. Finally, Bank of New York Mellon Corp increased its holdings in shares of Arista Networks by 88.0% in the 3rd quarter. Bank of New York Mellon Corp now owns 465,641 shares of the technology company’s stock valued at $88,290,000 after purchasing an additional 218,014 shares in the last quarter. Institutional investors and hedge funds own 58.11% of the company’s stock.

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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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