Zacks Investment Research Lowers Arista Networks (NYSE:ANET) to Hold

Arista Networks (NYSE:ANET) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Wednesday, February 7th.

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.”

Several other research analysts have also commented on the company. Goldman Sachs Group started coverage on Arista Networks in a report on Wednesday, February 7th. They set a “buy” rating and a $320.00 price target on the stock. Loop Capital initiated coverage on Arista Networks in a research report on Monday, January 29th. They set a “hold” rating and a $250.00 price objective for the company. JMP Securities lifted their target price on Arista Networks from $230.00 to $315.00 and gave the company a “market perform” rating in a research report on Friday, January 26th. Citigroup lifted their price objective on Arista Networks from $275.00 to $315.00 and gave the company a “buy” rating in a research note on Wednesday, January 24th. Finally, Morgan Stanley boosted their target price on Arista Networks to $310.00 and gave the stock an “overweight” rating in a research note on Tuesday, January 23rd. Fifteen equities research 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 stock. Arista Networks presently has an average rating of “Buy” and a consensus target price of $230.17.

Shares of Arista Networks (ANET) traded up $5.29 during mid-day trading on Wednesday, reaching $297.87. The company’s stock had a trading volume of 771,757 shares, compared to its average volume of 863,786. Arista Networks has a 12 month low of $99.51 and a 12 month high of $299.00. The company has a quick ratio of 3.07, a current ratio of 3.66 and a debt-to-equity ratio of 0.03. The stock has a market cap of $20,800.06, a price-to-earnings ratio of 61.28, a P/E/G ratio of 2.19 and a beta of 1.47.

In other Arista Networks news, SVP Marc Taxay sold 2,000 shares of the firm’s stock in a transaction that occurred on Thursday, February 1st. The stock was sold at an average price of $275.31, for a total transaction of $550,620.00. Following the completion of the sale, 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 SEC, which is available through the SEC website. Also, insider Andreas Bechtolsheim sold 39,680 shares of the firm’s stock in a transaction that occurred on Tuesday, November 21st. The shares were sold at an average price of $241.92, for a total value of $9,599,385.60. Following the sale, the insider now owns 73,102 shares of the company’s stock, valued at approximately $17,684,835.84. The disclosure for this sale can be found here. Insiders have sold 385,683 shares of company stock worth $92,010,804 over the last quarter. 28.09% of the stock is currently owned by company insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in ANET. ProShare Advisors LLC bought a new stake in Arista Networks during the 2nd quarter valued at $233,000. PNC Financial Services Group Inc. raised its stake in Arista Networks by 20.5% during the 2nd quarter. PNC Financial Services Group Inc. now owns 740 shares of the technology company’s stock valued at $111,000 after acquiring an additional 126 shares in the last quarter. Northern Trust Corp raised its stake in Arista Networks by 27.3% during the 2nd quarter. Northern Trust Corp now owns 272,453 shares of the technology company’s stock valued at $40,810,000 after acquiring an additional 58,422 shares in the last quarter. M&T Bank Corp raised its stake in Arista Networks by 6.4% during the 2nd quarter. M&T Bank Corp now owns 2,315 shares of the technology company’s stock valued at $347,000 after acquiring an additional 140 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in Arista Networks by 0.4% during the 2nd quarter. Dimensional Fund Advisors LP now owns 211,624 shares of the technology company’s stock valued at $31,700,000 after acquiring an additional 858 shares in the last quarter. 58.15% of the stock is currently owned by institutional investors and hedge funds.

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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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