Arista Networks Inc. (NYSE:ANET) finished Wednesday with an addition of $2.31 to close at $189.83, an upside of 1.23 percent. An average of 2,701,220 shares of common stock have been traded in the last five days. There was a gain of $8.46 in the past week, and it reached a new high 25 times over the past 12 months. The last 20 days have seen an average of 3,679,525 shares traded, while the 50-day average volume stands at 3,193,962.
ANET stock has increased by 9.04% in the last month. The company shares reached their 1-month lowest point of $149.10 on 07/28/23. With the stock rallying to its 52-week high on 08/23/23, shares of the company touched a low of $98.20 and a high of $190.65 in 52 weeks. It has reached a new high 22 times so far this year and achieved 56.43% or $68.48 in price. In spite of this, the price is down -0.43% 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 14 days ago on Aug 10. In this transaction, the insider spent $3,552,343. CTO and SVP Software Eng., Duda Kenneth, disposed of 19,500 shares at a price of $177.62 on Aug 10. The insider now owns more than $3,463,520 worth of shares. Prior to that, SVP, Chief Operating Officer Sadana Anshul went on to Sale 25,212 shares at $180.11 each on Aug 01. An amount of $4,540,941 was transacted.
Valuation Metrics
Arista Networks Inc. (ANET) has a trailing price-to-earnings (P/E) ratio of 35.04. The stock’s beta is 1.14. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 11.30, the price-to-book (PB) ratio at 10.00, and the price-to-cash flow ratio at 62.95.
Financial Health
The quick ratio of Arista Networks Inc. for the three months ended June 29 was 2.80, and the current ratio was 4.10, 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. Arista Networks Inc.’s EBITDA margin for the year ending June 29 is 36.82%, while its operating margin for the same period stands at 36.10%. Its gross profit as reported stood at $2.68 billion compared to revenue of $4.38 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 23.90%.
Earnings Surprise
In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $491.89 million in the quarter, while revenues of $436.47 million were grew 39.19%. The analyst consensus anticipated Arista Networks Inc.’s latest quarter earnings to come in at $1.44 per share, but it turned out to be $1.58, a 9.70% surprise. For the quarter, EBITDA amounted to $540.61 million. Shareholders own equity worth $309.58 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 23 August was 70.69%, suggesting the stock is Overbought, with historical volatility in this time frame at 15.73%.
As of today, ANET’s price is $185.06 +4.66% or $8.46 from its 5-day moving average. ANET is currently trading +15.43% higher than its 20-day SMA and +16.83% higher than its 100-day SMA. However, the stock’s current price level is +11.66% above the SMA50 and +55.28% above the SMA200.
The stochastic %K and %D were 88.93% and 78.38%, respectively, and the average true range (ATR) was 5.67. With the 14-day stochastic at 93.39% and the average true range at 5.91, the RSI (14) stands at 65.65%. The stock has reached 5.18 on the 9-day MACD Oscillator while the 14-day reading was at 6.45.
Analyst Ratings
Exane BNP Paribas launched coverage on Arista Networks Inc. (NYSE: ANET) in its analyst report released on July 20, 2023. The firm assigned the stock an Outperform rating. The consensus rating for Arista Networks Inc. (ANET) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell ANET, while 9 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 14 others rate it as a “buy”.
What is ANET’s price target for the next 12 months?
Analysts predict a range of price targets between $160.00 and $225.00, with a median target of $200.00. Taking a look at these predictions, the average price target given by analysts for Arista Networks Inc. (ANET) stock is $197.20.
