Arista Networks Inc (ANET) Shares Plummet Below 1-Year High

Arista Networks Inc (NYSE: ANET)’s stock price has dropped by -3.76 in relation to previous closing price of 299.75. Nevertheless, the company has seen a loss of -5.57% in its stock price over the last five trading days. InvestorPlace reported 2024-04-01 that Artificial intelligence (AI) isn’t just a buzzword. According to Goldman Sachs, this transformative technology will disrupt industries and boost global economic growth.

Is It Worth Investing in Arista Networks Inc (NYSE: ANET) Right Now?

Arista Networks Inc (NYSE: ANET) has a higher price-to-earnings ratio of 43.85x compared to its average ratio, The 36-month beta value for ANET is at 1.11. Analysts have varying views on the stock, with 11 analysts rating it as a “buy,” 5 rating it as “overweight,” 9 as “hold,” and 0 as “sell.”

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The public float for ANET is 255.28M, and currently, shorts hold a 1.26% of that float. The average trading volume for ANET on April 02, 2024 was 2.48M shares.

ANET’s Market Performance

The stock of Arista Networks Inc (ANET) has seen a -5.57% decrease in the past week, with a 0.26% rise in the past month, and a 22.49% gain in the past quarter. The volatility ratio for the week is 3.02%, and the volatility levels for the past 30 days are at 3.06% for ANET. The simple moving average for the past 20 days is -0.06% for ANET’s stock, with a 33.86% simple moving average for the past 200 days.

Analysts’ Opinion of ANET

Citigroup, on the other hand, stated in their research note that they expect to see ANET reach a price target of $300, previously predicting the price at $220. The rating they have provided for ANET stocks is “Buy” according to the report published on December 14th, 2023.

Morgan Stanley gave a rating of “Overweight” to ANET, setting the target price at $220 in the report published on October 31st of the previous year.

ANET Trading at 4.29% from the 50-Day Moving Average

After a stumble in the market that brought ANET to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -6.26% of loss for the given period.

Volatility was left at 3.06%, however, over the last 30 days, the volatility rate increased by 3.02%, as shares sank -1.02% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +8.15% upper at present.

During the last 5 trading sessions, ANET fell by -6.71%, which changed the moving average for the period of 200-days by +68.55% in comparison to the 20-day moving average, which settled at $288.51. In addition, Arista Networks Inc saw 22.49% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at ANET starting from Ullal Jayshree, who sale 23,000 shares at the price of $288.51 back on Mar 28 ’24. After this action, Ullal Jayshree now owns 1,647,300 shares of Arista Networks Inc, valued at $6,635,730 using the latest closing price.

Ullal Jayshree, the President and CEO of Arista Networks Inc, sale 23,000 shares at $296.24 during a trade that took place back on Mar 27 ’24, which means that Ullal Jayshree is holding 1,651,800 shares at $6,813,520 based on the most recent closing price.

Stock Fundamentals for ANET

Current profitability levels for the company are sitting at:

  • 0.39 for the present operating margin
  • 0.62 for the gross margin

The net margin for Arista Networks Inc stands at 0.36. The total capital return value is set at 0.28. Equity return is now at value 34.49, with 24.96 for asset returns.

Based on Arista Networks Inc (ANET), the company’s capital structure generated 0.01 points at debt to capital in total, while cash flow to debt ratio is standing at 21.24.

Currently, EBITDA for the company is 2.31 billion with net debt to EBITDA at -0.8. When we switch over and look at the enterprise to sales, we see a ratio of 15.1. The receivables turnover for the company is 5.72for trailing twelve months and the total asset turnover is 0.59. The liquidity ratio also appears to be rather interesting for investors as it stands at 4.39.

Conclusion

In conclusion, Arista Networks Inc (ANET) has had a better performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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