How Arista Networks Inc. (ANET) Works From A Technical Perspective

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Arista Networks Inc. (NYSE:ANET) finished Friday with a subtraction of -$0.53 to close at $121.35, a downside of -0.43 percent. An average of 969,280 shares of common stock have been traded in the last five days. There was a gain of $0.98 in the past week, and it reached a new high 1 time over the past 12 months. The last 20 days have seen an average of 1,841,530 shares traded, while the 50-day average volume stands at 2,266,626.

ANET stock has decreased by -12.89% in the last month. The company shares reached their 1-month lowest point of $117.87 on 12/28/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $89.11 and a high of $146.27 in 52 weeks. It has reached a new high 1 time so far this year and lost -15.58% or -$22.40 in price. In spite of this, the price is down -17.04% from the 52-week high.


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Insider Transactions

ANET stock investors should be aware that Arista Networks Inc. (ANET) stock had its last reported insider trading activity 19 days ago on Dec 12. In this transaction, the insider spent $2,503,915. CTO and SVP Software Eng., Duda Kenneth, disposed of 20,000 shares at a price of $128.40 on Dec 12. The insider now owns more than $2,568,061 worth of shares. Prior to that, Senior Vice President, CFO Brennan Ita M went on to Sale 9,500 shares at $139.65 each on Dec 01. An amount of $1,326,632 was transacted.

Valuation Metrics

Arista Networks Inc. (ANET) has a trailing price-to-earnings (P/E) ratio of 33.07. The stock’s beta is 1.31. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 9.48, the price-to-book (PB) ratio at 8.44, and the price-to-cash flow ratio at 58.77.

Financial Health

The quick ratio of Arista Networks Inc. for the three months ended June 29 was 3.00, and the current ratio was 4.00, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending June 29. Its gross profit as reported stood at $1.88 billion compared to revenue of $2.95 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Arista Networks Inc.’s return on assets was 19.60%.

Earnings Surprise

For the three-month period that ended June 29, Arista Networks Inc. had $2.26 billion in cash. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $354.0 million in the quarter, while revenues of $299.1 million were grew 44.38%. The analyst consensus anticipated Arista Networks Inc.’s latest quarter earnings to come in at $0.91 per share, but it turned out to be $1.08, a 18.70% surprise. For the quarter, EBITDA amounted to $437.21 million. Shareholders own equity worth $305.57 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Arista Networks Inc. (ANET) price momentum. RSI 9-day as of the close on 30 December was 40.28%, suggesting the stock is Neutral, with historical volatility in this time frame at 20.07%.

As of today, ANET’s price is $120.21 +0.81% or $0.98 from its 5-day moving average. ANET is currently trading -13.19% lower than its 20-day SMA and +0.31% higher than its 100-day SMA. However, the stock’s current price level is +15.45% above the SMA50 and -2.29% below the SMA200.

The stochastic %K and %D were 14.66% and 10.35%, respectively, and the average true range (ATR) was 3.34. With the 14-day stochastic at 17.42% and the average true range at 3.68, the RSI (14) stands at 42.29%. The stock has reached -0.21 on the 9-day MACD Oscillator while the 14-day reading was at -3.00.

Analyst Ratings

Piper Sandler upgraded Arista Networks Inc. (NYSE: ANET) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as a Neutral.

What is ANET’s price target for the next 12 months?

Analysts predict a range of price targets between $118.20 and $212.00, with a median target of $164.00. Taking a look at these predictions, the average price target given by analysts for Arista Networks Inc. (ANET) stock is $159.63.

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