A Stock You Should Be Looking At: Arista Networks Inc. (NYSE:ANET)

The price of Arista Networks Inc. (NYSE: ANET) closed at 112.55 in the last session, down -1.12% from day before closing price of $113.82. In other words, the price has decreased by $-1.27 from its previous closing price. On the day, 1472753 shares were traded. ANET reached its highest trading level at $113.68 during the session, while it also had its lowest trading level at $111.19.

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Ratios:

We take a closer look at ANET’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 11.92 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 46.94. For the most recent quarter (mrq), Quick Ratio is recorded 3.00 and its Current Ratio is at 3.70. In the meantime, Its Debt-to-Equity ratio is 0.00 whereas as Long-Term Debt/Eq ratio is at 0.00.

Upgrades & Downgrades

On August 24, 2022, Deutsche Bank started tracking the stock assigning a Hold rating and target price of $135.

BofA Securities Downgraded its Buy to Underperform on July 20, 2022, whereas the target price for the stock was revised from $140 to $105.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Sep 12 when Duda Kenneth sold 19,500 shares for $125.03 per share. The transaction valued at 2,438,058 led to the insider holds 258,100 shares of the business.

Duda Kenneth sold 20,000 shares of ANET for $2,500,608 on Sep 12. The CTO and SVP Software Eng. now owns 3,244 shares after completing the transaction at $125.03 per share. On Sep 09, another insider, Giancarlo Charles H, who serves as the Director of the company, sold 2,000 shares for $125.08 each. As a result, the insider received 250,161 and left with 96,946 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, ANET now has a Market Capitalization of 34.63B and an Enterprise Value of 31.78B. As of this moment, Arista’s Price-to-Earnings (P/E) ratio for their current fiscal year is 34.67, and their Forward P/E ratio for the next fiscal year is 24.52. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 1.83. For the stock, the TTM Price-to-Sale (P/S) ratio is 9.88 while its Price-to-Book (P/B) ratio in mrq is 8.62. Its current Enterprise Value per Revenue stands at 9.08 whereas that against EBITDA is 26.64.

Stock Price History:

The Beta on a monthly basis for ANET is 1.33, which has changed by 25.00% over the last 52 weeks, in comparison to a change of -15.65% over the same period for the S&P500. Over the past 52 weeks, ANET has reached a high of $148.57, while it has fallen to a 52-week low of $85.18. The 50-Day Moving Average of the stock is 118.33, while the 200-Day Moving Average is calculated to be 119.01.

Shares Statistics:

According to the various share statistics, ANET traded on average about 1.91M shares per day over the past 3-months and 2.28M shares per day over the past 10 days. A total of 306.75M shares are outstanding, with a floating share count of 232.84M. Insiders hold about 0.10% of the company’s shares, while institutions hold 67.50% stake in the company. Shares short for ANET as of Aug 30, 2022 were 4.41M with a Short Ratio of 2.31, compared to 4.08M on Jul 28, 2022. Therefore, it implies a Short% of Shares Outstanding of 1.45% and a Short% of Float of 1.80%.

Earnings Estimates

The company has 23 analysts who recommend its stock at the moment. On average, analysts expect EPS of $1.04 for the current quarter, with a high estimate of $1.08 and a low estimate of $1.02, while EPS last year was $0.74. The consensus estimate for the next quarter is $1.05, with high estimates of $1.24 and low estimates of $0.88.

Analysts are recommending an EPS of between $4.2 and $3.82 for the fiscal current year, implying an average EPS of $4.01. EPS for the following year is $4.59, with 26 analysts recommending between $6.24 and $4.11.

Revenue Estimates

According to 20 analysts, the current quarter’s revenue is expected to be $1.06B. It ranges from a high estimate of $1.08B to a low estimate of $1.05B. As of the current estimate, Arista Networks Inc.’s year-ago sales were $748.7M, an estimated increase of 41.50% from the year-ago figure. For the next quarter, 20 analysts are estimating revenue of $1.09B, an increase of 32.00% less than the figure of $41.50% in the same quarter last year. There is a high estimate of $1.18B for the next quarter, whereas the lowest estimate is $947.86M.

A total of 25 analysts have provided revenue estimates for ANET’s current fiscal year. The highest revenue estimate was $4.16B, while the lowest revenue estimate was $3.93B, resulting in an average revenue estimate of $4.07B. In the same quarter a year ago, actual revenue was $2.95B, up 38.00% from the average estimate. Based on 25 analysts’ estimates, the company’s revenue will be $4.67B in the next fiscal year. The high estimate is $5.56B and the low estimate is $4.4B. The average revenue growth estimate for next year is up 14.80% from the average revenue estimate for this year.