As of Wednesday close, Arista Networks Inc.’s (NYSE:ANET) stock was up $1.65, moving up 0.89 percent to $187.10. The average number of shares traded per day over the past five days has been 1,735,180 shares. 1 time new highs have been achieved over the past 5 days, with a -$2.73 fall in that time frame. In the last twenty days, the average volume was 2,184,065, while in the previous 50 days, it was 2,941,756.
Since last month, ANET stock rose 0.80%. Shares of the company fell to $150.72 on 07/31/23, the lowest level in the past month. A 52-week high of $193.91 was reached on 08/24/23 after having rallying from a 52-week low of $98.20. Since the beginning of this year, ANET’s stock price has risen by 54.18% or $65.75, and marked a new high 23 times. However, the stock has declined by -3.51% since its 52-week high.
ANET stock investors should be aware that Arista Networks Inc. (ANET) stock had its last reported insider trading activity 7 days ago on Aug 24. Ullal Jayshree, the President and CEO of the company, disposed of 16,500 shares for $192.22 on Aug 24. It resulted in a $3,171,630 divestment by the insider. Ullal Jayshree sold 16,000 shares at an average price of $187.11 on Aug 22. The insider now owns 1,744,200 shares following the transaction. On Aug 22, Chief Platform Officer McCool John F sold 2,819 shares at $187.96 apiece. The transaction was valued at $529,860.
Valuation Metrics
Right now, Arista Networks Inc. (ANET) has a P/E ratio of about 34.54. The stock’s beta is 1.18. Besides these, the trailing price-to-sales (P/S) ratio of 10.90, the price-to-book (PB) ratio of 9.86, and the price-to-cash flow ratio of 60.71 may also be considered.
Financial Health
In the three months ended June 29, Arista Networks Inc.’s quick ratio stood at 2.80, while its current ratio was 4.10, showing that the company is able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 60.20% percent. In the year ended June 29, EBITDA margin amounted to 36.82%, whereas operating margins totaled 36.10%. Based on annual data, ANET earned $2.68 billion in gross profit and brought in $4.38 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 26.60%. Return on equity (ROE) for the past 12 months was 33.40%.
According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. ANET’s revenue rose 27.9% to $1.35 billion during the quarter, while net income inched up to $1.46 billion. While analysts expected Arista Networks Inc. to report $1.44 quarterly earnings, the actual figure was $1.58 per share, beating the consensus estimate by 9.70%. During the quarter, the company generated $540.61 million in EBITDA. The liabilities of Arista Networks Inc. were 2.33 billion at the end of its most recent quarter ended June 29, and its total debt was $51.7 million. The value of shareholders’ equity is $309.58 million.
Technical Picture
This quick technical analysis looks at Arista Networks Inc.’s (ANET) price momentum. With a historical volatility rate of 36.88%, the RSI 9-day stood at 61.23% on 30 August.
With respect to its five-day moving average, the current Arista Networks Inc. price is down by -1.44% percent or -$2.73. At present, ANET shares trade +5.54% above its 20-day simple moving average and +17.05% percent above its 100-day simple moving average. However, the stock is currently trading approximately +21.10% above its SMA50 and +47.35% above its SMA200.
Stochastic coefficient K was 54.41% and Stochastic coefficient D was 43.99%, while ATR was 6.02. Given the Stochastic reading of 65.78% for the 14-day period, the RSI (14) reading has been calculated as 59.85%. As of today, the MACD Oscillator reading stands at 0.71, while the 14-day reading stands at 2.41.
Analyst Ratings
Exane BNP Paribas launched its rating on Arista Networks Inc. (NYSE: ANET) to an Outperform in a note to investors on July 20, 2023. Arista Networks Inc. (ANET) has been rated Overweight by analysts. According to 1 brokerage firm, ANET is a sell, and 9 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 1 analyst rate Arista Networks Inc. stock as buy, with 14 recommending it as overweight.
With a median target price of $200.00, the current consensus forecast for the stock is $160.00 – $225.00. Based on these forecasts, analysts predict Arista Networks Inc. (ANET) will achieve an average price target of $197.20.
