Arista Networks (ANET) Crashes - Time to Buy In?

Shares of Arista Networks have moved -4.0% today, and are now trading at a price of $116.06. In contrast, the S&P 500 index saw a 1.2% change. Today's trading volume is 1,891,924 compared to the stock's average volume of 2,267,182.

Arista Networks, Inc. develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Based in Santa Clara, United States the company has 2,993 full time employees and a market cap of $35,665,235,968.

The company is now trading -27.2% away from its average analyst target price of $159.43 per share. The 19 analysts following the stock have set target prices ranging from $118.2 to $212, and on average give Arista Networks a rating of buy.

Over the last year, ANET shares have gone down by -9.2%, which represents a difference of 9.5% when compared to the S&P 500. The stock's 52 week high is $143.57 per share and its 52 week low is $89.11. With stable margins, strong cash flows, solid earnings and low debt, Arista's share price weakness doesn't reflect its solid fundamentals:

2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $2,411 $2,318 $2,948
Revenue Growth n/a -3.87% 27.21%
Gross Margins 64.1% 63.9% 63.8%
Gross Margins Growth n/a -0.31% -0.16%
Operating Margins 33.4% 30.2% 31.4%
Operating Margins Growth n/a -9.58% 3.97%
Earnings Per Share $2.66 $2.0 $2.63
EPS Growth n/a -24.81% 31.5%
Free Cash Flow (MM) $947 $720 $951
FCF Growth n/a -24.02% 32.15%
Capital Expenditures (MM) -$16 -$15 -$65
Net Debt / EBITDA -1.23 -1.07 -0.58
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.