Arista Networks (ANET) Upgraded by Zacks Investment Research to “Buy”

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Arista Networks (NYSE:ANET) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Monday. The brokerage presently has a $289.00 price target on the technology company’s stock. Zacks Investment Research‘s price target suggests a potential upside of 22.14% from the company’s previous close.

According to Zacks, “Arista reported healthy third-quarter 2018 results with year-over-year increase in revenues and record earnings on the back of solid order trends and favorable growth dynamics. The company introduced the new 400-gigabit fixed switches named the 7060X4 Series, based on the new Broadcom merchant silicon Tomahawk 3 with significant routing and buffering improvements. Arista is likely to take a leading role in the rollout of 400-gig Ethernet in 2019 and beyond while continuing its healthy growth momentum in the future. The company continues to benefit from the expanding cloud networking market led by the Cloud Titans vertical, along with solid demand for 100-gigabit routing and switching products. Strength in FlexRoute and CloudVision products remain key catalyst. However, the stock has underperformed the industry in the past three months on an average. Arista faces significant competition from giant network equipment and system vendors.”

ANET has been the subject of several other reports. William Blair reiterated an “outperform” rating on shares of Arista Networks in a report on Monday, September 17th. DA Davidson boosted their price target on Arista Networks from $300.00 to $312.00 and gave the company a “buy” rating in a report on Friday, August 3rd. JPMorgan Chase & Co. boosted their price target on Arista Networks from $255.00 to $262.00 and gave the company a “hold” rating in a report on Friday, November 2nd. Credit Suisse Group set a $311.00 price target on Arista Networks and gave the company a “buy” rating in a report on Thursday, October 4th. Finally, BMO Capital Markets upgraded Arista Networks from a “market perform” rating to an “outperform” rating and set a $279.00 price target for the company in a report on Wednesday, October 17th. They noted that the move was a valuation call. One analyst has rated the stock with a sell rating, thirteen have assigned a hold rating, seventeen have issued a buy rating and one has issued a strong buy rating to the company. The company has a consensus rating of “Buy” and a consensus target price of $291.31.

Shares of Arista Networks stock traded down $7.81 during trading on Monday, hitting $236.62. 834,824 shares of the company were exchanged, compared to its average volume of 1,099,006. The company has a debt-to-equity ratio of 0.02, a current ratio of 4.51 and a quick ratio of 4.11. Arista Networks has a fifty-two week low of $206.86 and a fifty-two week high of $313.37. The company has a market capitalization of $18.44 billion, a P/E ratio of 50.89, a P/E/G ratio of 1.70 and a beta of 1.56.

Arista Networks (NYSE:ANET) last issued its quarterly earnings results on Thursday, November 1st. The technology company reported $1.83 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.62 by $0.21. The company had revenue of $563.31 million during the quarter, compared to the consensus estimate of $548.81 million. Arista Networks had a return on equity of 29.06% and a net margin of 28.05%. Arista Networks’s revenue was up 28.7% on a year-over-year basis. During the same period in the previous year, the firm posted $1.62 EPS. As a group, research analysts expect that Arista Networks will post 6.81 EPS for the current fiscal year.

In other news, SVP Kenneth Duda sold 11,000 shares of the company’s stock in a transaction on Wednesday, October 10th. The stock was sold at an average price of $229.24, for a total transaction of $2,521,640.00. Following the completion of the sale, the senior vice president now directly owns 2,664 shares in the company, valued at approximately $610,695.36. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Jayshree Ullal sold 76,659 shares of the company’s stock in a transaction on Friday, August 24th. The stock was sold at an average price of $306.41, for a total value of $23,489,084.19. Following the sale, the insider now owns 3,809 shares of the company’s stock, valued at $1,167,115.69. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 203,820 shares of company stock valued at $60,871,675. Insiders own 24.95% of the company’s stock.

A number of institutional investors have recently made changes to their positions in ANET. Principal Financial Group Inc. boosted its position in Arista Networks by 4.6% during the 1st quarter. Principal Financial Group Inc. now owns 8,202 shares of the technology company’s stock worth $2,094,000 after purchasing an additional 361 shares during the period. IFM Investors Pty Ltd boosted its position in Arista Networks by 58.4% during the 2nd quarter. IFM Investors Pty Ltd now owns 2,326 shares of the technology company’s stock worth $599,000 after purchasing an additional 858 shares during the period. State of Alaska Department of Revenue boosted its position in Arista Networks by 39.4% during the 2nd quarter. State of Alaska Department of Revenue now owns 6,912 shares of the technology company’s stock worth $1,779,000 after purchasing an additional 1,952 shares during the period. Xact Kapitalforvaltning AB boosted its position in Arista Networks by 1.9% during the 2nd quarter. Xact Kapitalforvaltning AB now owns 11,263 shares of the technology company’s stock worth $2,900,000 after purchasing an additional 209 shares during the period. Finally, Fjarde AP Fonden Fourth Swedish National Pension Fund boosted its position in Arista Networks by 16.6% during the 2nd quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 17,666 shares of the technology company’s stock worth $4,549,000 after purchasing an additional 2,513 shares during the period. 54.32% of the stock is owned by hedge funds and other institutional investors.

About Arista Networks

Arista Networks, Inc provides cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company's cloud networking solutions consist of its extensible operating systems, a set of network applications, as well as gigabit Ethernet switching and routing platforms, including universal leaf, spline, and universal spine products.

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