BofA Securities slashes price target on Arista Networks Inc. [ANET] – find out why.


Arista Networks Inc. [NYSE: ANET] plunged by -$0.47 during the normal trading session on Tuesday and reaching a high of $123.07 during the day while it closed the day at $117.14. The company report on August 1, 2022 that Arista Networks, Inc. Reports Second Quarter 2022 Financial Results.

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Arista Networks, Inc. (NYSE: ANET), an industry leader in data-driven, client to cloud networking for large data center, campus and routing environments, today announced financial results for its second quarter ended June 30, 2022.

“In Q2 2022, we achieved our first billion-dollar revenue quarter, despite the challenges of an uncertain supply chain environment,” said Jayshree Ullal, President and CEO of Arista Networks. “This record milestone further validates the customer value of Arista’s differentiated cloud networking platforms, now adopted by many of the largest cloud and enterprise customers around the world.”.

Arista Networks Inc. stock has also gained 13.35% of its value over the past 7 days. However, ANET stock has declined by -0.95% in the 3 months of the year. Over the past six months meanwhile, it has lost -5.77% and lost -18.51% year-on date.

The market cap for ANET stock reached $33.78 billion, with 308.05 million shares outstanding and 236.82 million shares in the current float. Compared to the average trading volume of 2.01M shares, ANET reached a trading volume of 4375496 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Arista Networks Inc. [ANET]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ANET shares is $143.21 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ANET stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

BofA Securities have made an estimate for Arista Networks Inc. shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on July 20, 2022. The new note on the price target was released on July 19, 2022, representing the official price target for Arista Networks Inc. stock. Previously, the target price had yet another raise to $140, while Rosenblatt analysts kept a Buy rating on ANET stock. On March 10, 2022, analysts increased their price target for ANET shares from 142 to 160.

The Average True Range (ATR) for Arista Networks Inc. is set at 4.04, with the Price to Sales ratio for ANET stock in the period of the last 12 months amounting to 10.70. The Price to Book ratio for the last quarter was 8.69, with the Price to Cash per share for the same quarter was set at 11.87. Price to Free Cash Flow for ANET in the course of the last twelve months was 37.37 with Quick ratio for the last quarter at 3.20.

ANET stock trade performance evaluation

Arista Networks Inc. [ANET] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 13.35. With this latest performance, ANET shares gained by 25.40% in over the last four-week period, additionally sinking by -5.77% over the last 6 months – not to mention a rise of 24.23% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ANET stock in for the last two-week period is set at 71.69, with the RSI for the last a single of trading hit 78.48, and the three-weeks RSI is set at 65.35 for Arista Networks Inc. [ANET]. The present Moving Average for the last 50 days of trading for this stock 100.98, while it was recorded at 115.16 for the last single week of trading, and 118.27 for the last 200 days.

Arista Networks Inc. [ANET]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Arista Networks Inc. [ANET] shares currently have an operating margin of +31.37 and a Gross Margin at +63.80. Arista Networks Inc.’s Net Margin is presently recorded at +28.52.

Return on Equity for this stock inclined to 23.04, with Return on Assets sitting at 16.06.

Arista Networks Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 3.20 and a Current Ratio set at 3.70.

Earnings per share (EPS) analysis for Arista Networks Inc. [ANET] stock

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ANET. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Arista Networks Inc. go to 18.60%.

Arista Networks Inc. [ANET]: Insider Ownership positions

There are presently around $22,989 million, or 66.80% of ANET stock, in the hands of institutional investors. The top three institutional holders of ANET stocks are: VANGUARD GROUP INC with ownership of 25,268,588, which is approximately 1.418% of the company’s market cap and around 0.20% of the total institutional ownership; BLACKROCK INC., holding 17,368,275 shares of the stock with an approximate value of $2.03 billion in ANET stocks shares; and ALLIANCEBERNSTEIN L.P., currently with $1.1 billion in ANET stock with ownership of nearly 12.203% of the company’s market capitalization.

Positions in Arista Networks Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 371 institutional holders increased their position in Arista Networks Inc. [NYSE:ANET] by around 15,408,856 shares. Additionally, 374 investors decreased positions by around 15,589,963 shares, while 115 investors held positions by with 165,253,425 shares. The mentioned changes placed institutional holdings at 196,252,244 shares, according to the latest SEC report filing. ANET stock had 89 new institutional investments in for a total of 3,518,265 shares, while 99 institutional investors sold positions of 2,269,711 shares during the same period.