At the last check on Thursday, Arista Networks Inc.’s (NYSE:ANET) stock was down -$4.19, moving down -2.29 percent to $178.56. The average number of shares traded per day over the past five days has been 1,312,190 shares. 2 times new highs have been achieved over the past 5 days, with a -$9.03 fall in that time frame. In the last twenty days, the average volume was 1,728,843, while in the previous 50 days, it was 2,660,511.
Since last month, ANET stock retreated -4.78%. Shares of the company fell to $177.06 on 09/21/23, the lowest level in the past month. A 52-week high of $198.70 was reached on 09/01/23 after having rallying from a 52-week low of $98.20. Since the beginning of this year, ANET’s stock price has risen by 47.14% or $57.18, and marked a new high 25 times. However, the stock has declined by -10.14% 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 Sep 14. Giancarlo Charles H, the Director of the company, disposed of 2,000 shares for $188.52 on Sep 14. It resulted in a $377,044 divestment by the insider. Duda Kenneth sold 20,000 shares at an average price of $191.09 on Sep 12. The insider now owns 3,244 shares following the transaction. On Sep 12, CTO and SVP Software Eng. Duda Kenneth sold 16,000 shares at $191.09 apiece. The transaction was valued at $3,057,393.
Valuation Metrics
Right now, Arista Networks Inc. (ANET) has a P/E ratio of about 32.96. The stock’s beta is 1.18. Besides these, the trailing price-to-sales (P/S) ratio of 10.67, the price-to-book (PB) ratio of 9.41, and the price-to-cash flow ratio of 59.39 may also be considered.
Financial Health
In the three months ended June 30, 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 30, 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 30, 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 11.81%, the RSI 9-day stood at 29.36% on 20 September.
With respect to its five-day moving average, the current Arista Networks Inc. price is down by -4.81% percent or -$9.03. At present, ANET shares trade -5.95% below its 20-day simple moving average and +11.47% percent above its 100-day simple moving average. However, the stock is currently trading approximately +8.83% above its SMA50 and +32.21% above its SMA200.
Stochastic coefficient K was 8.62% and Stochastic coefficient D was 16.76%, while ATR was 5.11. Given the Stochastic reading of 6.79% for the 14-day period, the RSI (14) reading has been calculated as 40.13%. As of today, the MACD Oscillator reading stands at -4.04, while the 14-day reading stands at -7.90.
Analyst Ratings
Citigroup upgraded its rating on Arista Networks Inc. (NYSE: ANET) to a Buy in a note to investors on August 31, 2023. The analysts firm previously had a Neutral rating on the stock.Arista Networks Inc. (ANET) has been rated Overweight by analysts. According to 1 brokerage firm, ANET is a sell, and 8 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 15 recommending it as overweight.
With a median target price of $201.00, the current consensus forecast for the stock is $160.00 – $230.00. Based on these forecasts, analysts predict Arista Networks Inc. (ANET) will achieve an average price target of $203.10.
