AEGON Asset Management UK Plc has reduced its stake in Arista Networks, Inc. (NYSE: ANET) by 9.6% during the second quarter of 2023. The institutional investor now holds 318,108 shares of the technology firm after selling 33,708 shares. As of the end of the most recent quarter, AEGON’s holdings in Arista Networks were valued at approximately $32.55 million, according to data from HoldingsChannel.
In addition to AEGON, several other institutional investors have adjusted their positions in Arista Networks recently. For instance, REAP Financial Group LLC increased its holdings by 108%, now owning 337 shares worth around $34,000 after acquiring an additional 175 shares. Similarly, HighMark Wealth Management LLC raised its stake by 179.7% in the first quarter, resulting in ownership of 358 shares valued at $28,000.
Various hedge funds have shown interest in Arista Networks, with Cloud Capital Management LLC and the Saudi Central Bank both acquiring new positions valued at approximately $30,000 and $33,000, respectively. Collectively, institutional investors, including hedge funds, own about 82.47% of Arista Networks’ stock.
Analysts’ Perspectives and Stock Performance
Recent ratings from analysts indicate positive sentiment around Arista Networks. William Blair reiterated an “outperform” rating on September 12, 2023. Barclays raised its target price from $151.00 to $179.00 while maintaining an “overweight” rating. UBS Group and KeyCorp also increased their target prices, with UBS raising it from $115.00 to $155.00, and KeyCorp adjusting from $115.00 to $145.00. Wolfe Research set a new price target of $185.00 for the company. Overall, 19 analysts have rated the stock as a Buy, while four have issued a Hold rating, leading to an average target price of $163.94 according to MarketBeat.
Arista Networks’ stock, however, has seen fluctuations. On the latest trading day, shares opened at $138.76, down 5.9% from prior levels. The company has experienced a twelve-month low of $59.43 and a high of $162.68, with a market capitalization of $174.40 billion.
Insider Transactions and Financial Performance
In notable insider trading activity, Director Charles H. Giancarlo sold 8,000 shares on October 1, 2023, at an average price of $147.49, totaling approximately $1.18 million. Following this transaction, Giancarlo holds 41,784 shares, valued at about $6.16 million, reflecting a 16.07% decrease in his position.
CEO Jayshree Ullal sold a larger quantity of shares, offloading 1,247,688 shares on September 10, for a total of around $185.32 million. After this trade, Ullal retains 5,383,207 shares, valued at approximately $799.57 million, marking an 18.82% decrease in her holdings. In total, corporate insiders sold 6,678,904 shares during the last quarter, valued at around $894 million. Insiders now own about 3.54% of the company’s stock.
Arista Networks recently reported its quarterly earnings on August 5, 2023, revealing earnings per share (EPS) of $0.73, surpassing analysts’ expectations of $0.65 by $0.08. The company reported revenues of $2.20 billion, exceeding estimates of $2.11 billion. This performance reflects a year-over-year revenue increase of 30.4%, compared to $0.53 EPS in the same quarter of the previous year.
As Arista Networks continues to navigate the competitive landscape of technology and networking solutions, analysts anticipate a projected EPS of $2.20 for the current fiscal year. With a robust portfolio in data-driven, cloud networking solutions, the company maintains a crucial presence in the market across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions.
