The stock of Arista Networks Inc. (NYSE:ANET) increased by $1.53 on Tuesday to finish at $179.65, up 0.86 percent. The last five days have seen an average of 1,485,760 shares of common stock traded. 21 times new highs were reached in the current year, with a gain of $58.30. The average number of shares traded over the last 20 days was 3,549,555, while the average volume over the last 50 days totaled 3,190,410.
ANET stock appreciated 5.42% since last month. On 07/28/23, the company’s shares reached a one-month low of $149.10. The stock touched a high of $190.65 on 08/01/23, after rallying from a low of $98.20 in 52 weeks. The price of ANET stock has risen by 48.04% or $58.30 this year, reaching a new high 21 times. Still, the stock price is down -5.77% from the 52-week high.
Insider Transactions
ANET stock investors should be aware that Arista Networks Inc. (ANET) stock had its last reported insider trading activity 6 days ago on Aug 10. On Aug 10, CTO and SVP Software Eng. Duda Kenneth sold 20,000 shares at $177.62 each. This transaction resulted in the insider making $3,552,343. On Aug 10, Duda Kenneth sold 19,500 shares at a price of US$177.62. After the transaction, the insider now owns 219,600 shares. SVP, Chief Operating Officer Sadana Anshul had earlier sold 25,212 shares on Aug 01 for $180.11 a share. The transaction was completed for $4,540,941.
Valuation Metrics
Arista Networks Inc. (ANET) has a trailing price-to-earnings (P/E) ratio of 33.16. Beta for the stock is 1.18. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 10.65, the price-to-book (PB) ratio of 9.47, and the price-to-cash flow ratio of 59.30.
Financial Health
For the three months ended June 29, Arista Networks Inc.’s quick ratio was 2.80, while its current ratio was 4.10, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 60.20% percent. Arista Networks Inc.’s EBITDA margin for the year ended June 29 was 36.82%, whereas its operating margin stood at 36.10% for the same period. Based on annual data, it had gross profit of $2.68 billion and revenue of $4.38 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. ANET’s return on assets (ROA) during the last 12 months has been 23.90%. There was a 26.60% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 33.40%.
Earnings Surprise
According to Arista Networks Inc.’s quarterly financial report for the quarter that ended June 29, it had $2.48 billion in cash and short-term investments. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $1.46 billion, while revenues rose by 27.9% to $1.35 billion. It was predicted that Arista Networks Inc.’s quarterly earnings would be $1.58, but it ended up being $1.44, beating the consensus by 9.70%. EBITDA was $540.61 million for the quarter. At the end of Arista Networks Inc.’s most recent quarter ended June 29, its liabilities totaled 2.33 billion, while its total debt was $51.7 million. Equity owned by shareholders amounts to $309.58 million.
Technical Picture
Here’s a quick look at Arista Networks Inc.’s (ANET) price momentum from a technical perspective. As of 15 August, the RSI 9-day stood at 59.28%, suggesting the stock is Neutral, with a 16.00% historical volatility rate.
The stochastic %K and %D were 68.52% and 66.55% respectively, while the average true range (ATR) was 6.35. Based on the 14-day stochastic reading of 73.53%, the RSI (14) reading is 58.19%. On the 9-day MACD Oscillator, the stock is at -0.60, and the 14-day reading is at 3.74.
Analyst Ratings
In its analyst report released on July 20, 2023, Exane BNP Paribas began covering Arista Networks Inc. (NYSE: ANET). The stock was rated as an Outperform by the brokerage firm. Analysts have assigned Arista Networks Inc. (ANET) an Overweight rating. ANET is a stock that is recommended for selling by 1 brokerage firm, while 9 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 1 rate it overweight and 14 others recommend it as a buy.
What is ANET’s price target for the next 12 months?
The current consensus forecast for the stock is between $154.00 and $225.00, with a median target price of $200.00. In analyzing these forecasts, the average price target given by analysts for Arista Networks Inc. (ANET) is $195.20.
