Arista Networks (NYSE:ANET) Shares Down 19.1% - What's Next?

Arista Networks, Inc. (NYSE:ANET - Get Free Report) shares dropped 19.1% on Monday . The stock traded as low as $104.52 and last traded at $104.48. Approximately 10,871,015 shares changed hands during mid-day trading, an increase of 61% from the average daily volume of 6,738,225 shares. The stock had previously closed at $129.17.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. Rosenblatt Securities raised their target price on shares of Arista Networks from $66.25 to $80.00 and gave the stock a "sell" rating in a research note on Friday, November 8th. Morgan Stanley raised their price objective on shares of Arista Networks from $102.50 to $118.00 and gave the stock an "overweight" rating in a research report on Tuesday, December 17th. Piper Sandler reaffirmed a "neutral" rating and issued a $105.25 target price (up previously from $86.25) on shares of Arista Networks in a research report on Friday, November 8th. Citigroup lifted their price target on Arista Networks from $96.25 to $115.00 and gave the stock a "buy" rating in a report on Tuesday, October 8th. Finally, Wells Fargo & Company upped their price objective on Arista Networks from $97.50 to $115.00 and gave the company an "overweight" rating in a report on Wednesday, October 30th. One research analyst has rated the stock with a sell rating, four have issued a hold rating and thirteen have given a buy rating to the stock. Based on data from MarketBeat.com, Arista Networks has an average rating of "Moderate Buy" and an average price target of $105.83.

Arista Networks Stock Performance

The stock's fifty day moving average price is $111.84 and its two-hundred day moving average price is $98.79. The company has a market cap of $145.13 billion, a P/E ratio of 55.39, a P/E/G ratio of 2.90 and a beta of 1.08.

Arista Networks (NYSE:ANET - Get Free Report) last issued its earnings results on Thursday, November 7th. The technology company reported $0.60 earnings per share for the quarter, beating analysts' consensus estimates of $0.52 by $0.08. Arista Networks had a return on equity of 30.52% and a net margin of 40.29%. The firm had revenue of $1.81 billion for the quarter, compared to the consensus estimate of $1.76 billion. During the same quarter last year, the business posted $0.41 EPS. The company's revenue was up 20.0% compared to the same quarter last year. On average, equities research analysts forecast that Arista Networks, Inc. will post 1.97 EPS for the current year.

Insiders Place Their Bets

In other Arista Networks news, CEO Jayshree Ullal sold 3,328 shares of the company's stock in a transaction dated Monday, November 4th. The stock was sold at an average price of $99.35, for a total value of $330,628.48. Following the completion of the transaction, the chief executive officer now owns 70,724 shares of the company's stock, valued at $7,026,252.59. This represents a 4.49 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider John F. Mccool sold 6,340 shares of the stock in a transaction dated Thursday, November 21st. The shares were sold at an average price of $98.58, for a total value of $625,013.05. Following the completion of the transaction, the insider now owns 288 shares of the company's stock, valued at $28,391.76. This represents a 95.65 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 331,160 shares of company stock valued at $36,380,165. 3.54% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. GW Henssler & Associates Ltd. raised its stake in shares of Arista Networks by 3.6% during the third quarter. GW Henssler & Associates Ltd. now owns 63,244 shares of the technology company's stock valued at $24,274,000 after acquiring an additional 2,219 shares during the last quarter. Sumitomo Life Insurance Co. increased its holdings in Arista Networks by 69.8% in the third quarter. Sumitomo Life Insurance Co. now owns 9,028 shares of the technology company's stock valued at $3,465,000 after purchasing an additional 3,711 shares during the period. Walkner Condon Financial Advisors LLC bought a new position in Arista Networks during the 3rd quarter worth $2,318,000. Greenleaf Trust lifted its holdings in Arista Networks by 20.1% during the 3rd quarter. Greenleaf Trust now owns 13,224 shares of the technology company's stock worth $5,076,000 after buying an additional 2,216 shares during the period. Finally, Forsta AP Fonden grew its position in shares of Arista Networks by 10.0% in the 3rd quarter. Forsta AP Fonden now owns 72,800 shares of the technology company's stock valued at $27,942,000 after buying an additional 6,600 shares during the last quarter. 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.