Arista Networks (ANET) Cut to “Hold” at Zacks Investment Research

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Zacks Investment Research lowered shares of Arista Networks (NYSE:ANET) from a strong-buy rating to a hold rating in a research note published on Tuesday, Zacks.com reports.

According to Zacks, “Arista is well positioned with key cloud customers and is focused on expanding its presence across all the verticals. The company continues benefiting from the expanding cloud networking market led by strong demand for scalable infrastructure. Arista aims to sustain revenue growth and healthy cash generation in 2019 and beyond on the back of industry-leading product offerings that enable seamless integration with third-party applications for network management, automation and orchestration. The stock has outperformed the industry in the past year on average. However, Arista faces stiff competition in the cloud networking space, particularly from Cisco. Persistent lawsuits have been a distraction for it. It has been forced to bring down much of manufacturing in the United States, which along with redesigning of products, has led to loss of time and hurt gross margin.”

ANET has been the subject of a number of other research reports. Rosenblatt Securities began coverage on Arista Networks in a report on Friday, March 29th. They set a neutral rating and a $330.00 price target for the company. Nomura upgraded Arista Networks from a neutral rating to a buy rating and set a $260.00 price objective for the company in a report on Friday, January 18th. Morgan Stanley upgraded Arista Networks from an equal weight rating to an overweight rating and reduced their price objective for the stock from $290.00 to $250.00 in a report on Monday, January 7th. ValuEngine cut Arista Networks from a hold rating to a sell rating in a report on Tuesday, January 29th. Finally, Goldman Sachs Group restated a buy rating and set a $360.00 price objective (up previously from $300.00) on shares of Arista Networks in a report on Thursday, March 21st. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and nineteen have issued a buy rating to the stock. The stock has an average rating of Buy and a consensus price target of $300.91.

Arista Networks stock opened at $323.38 on Tuesday. Arista Networks has a 52 week low of $187.08 and a 52 week high of $331.27. The company has a debt-to-equity ratio of 0.02, a current ratio of 4.48 and a quick ratio of 4.04. The stock has a market cap of $24.49 billion, a P/E ratio of 45.74, a price-to-earnings-growth ratio of 1.97 and a beta of 1.51.

Arista Networks (NYSE:ANET) last posted its quarterly earnings results on Thursday, February 14th. The technology company reported $2.25 EPS for the quarter, topping analysts’ consensus estimates of $1.80 by $0.45. Arista Networks had a return on equity of 29.37% and a net margin of 29.47%. The business had revenue of $595.70 million during the quarter, compared to analysts’ expectations of $591.41 million. During the same quarter last year, the company posted $1.71 earnings per share. Arista Networks’s quarterly revenue was up 27.3% on a year-over-year basis. As a group, sell-side analysts predict that Arista Networks will post 8.24 EPS for the current year.

In other news, insider Anshul Sadana sold 42,084 shares of Arista Networks stock in a transaction that occurred on Friday, March 1st. The shares were sold at an average price of $286.27, for a total value of $12,047,386.68. Following the completion of the sale, the insider now directly owns 6,282 shares in the company, valued at $1,798,348.14. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, SVP Marc Taxay sold 2,000 shares of Arista Networks stock in a transaction that occurred on Friday, February 1st. The shares were sold at an average price of $218.11, for a total transaction of $436,220.00. Following the completion of the sale, the senior vice president now owns 15,367 shares of the company’s stock, valued at $3,351,696.37. The disclosure for this sale can be found here. Over the last quarter, insiders sold 239,229 shares of company stock valued at $70,325,047. 24.95% of the stock is owned by company insiders.

Institutional investors and hedge funds have recently made changes to their positions in the business. Larson Financial Group LLC acquired a new position in Arista Networks during the fourth quarter valued at approximately $25,000. FTB Advisors Inc. acquired a new position in Arista Networks during the fourth quarter valued at approximately $26,000. Kaizen Advisory LLC acquired a new position in Arista Networks during the fourth quarter valued at approximately $27,000. CENTRAL TRUST Co raised its position in Arista Networks by 53.3% during the fourth quarter. CENTRAL TRUST Co now owns 141 shares of the technology company’s stock valued at $29,000 after purchasing an additional 49 shares in the last quarter. Finally, Capital Investment Advisory Services LLC acquired a new position in Arista Networks during the fourth quarter valued at approximately $39,000. Institutional investors and hedge funds own 56.33% of the company’s stock.

Arista Networks Company Profile

Arista Networks, Inc develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company's cloud networking solutions consist of 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.

See Also: Cost of Equity For A Business, Investors

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