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How to buy Arista Networks stock | $210.46
Own Arista Networks stock in just a few minutes.
Arista Networks, Inc is a computer hardware business based in the US. Arista Networks shares (ANET) are listed on the NYSE and all prices are listed in US Dollars. Arista Networks employs 2,300 staff and has a trailing 12-month revenue of around USD$2.3 billion.
How to buy shares in Arista Networks
- Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
- Search for Arista Networks Find the stock by name or ticker symbol: ANET. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Arista Networks reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of USD$210.46, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Arista Networks, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Arista Networks. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- ANET shares summary
- Compare share dealing platforms
- Is ANET stock a buy or sell?
- Stock performance over time
- Can I short ANET shares?
- Is ANET suitable for ethical investing?
- Are ANET shares over-valued?
- Arista Networks's financials
- How volatile are ANET shares?
- Does Arista Networks pay a dividend?
- Other common questions
Arista Networks share price
Use our graph to track the performance of ANET stocks over time.Arista Networks shares at a glance
Information last updated 2020-09-25.
| Latest market close | USD$210.46 |
|---|---|
| 52-week range | USD$156.63 - USD$267.3 |
| 50-day moving average | USD$214.4146 |
| 200-day moving average | USD$214.0584 |
| Wall St. target price | USD$243.68 |
| PE ratio | 21.1374 |
| Dividend yield | N/A (0%) |
| Earnings per share (TTM) | USD$9.404 |
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Is it a good time to buy Arista Networks stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
Arista Networks price performance over time
Historical closes compared with the close of $210.46 from 2020-09-29
| 1 week (2020-09-24) | 6.05% |
|---|---|
| 1 month (2020-09-01) | -6.09% |
| 3 months (2020-07-01) | 0.49% |
| 6 months (2020-04-01) | 9.18% |
| 1 year (2019-10-01) | -8.63% |
|---|---|
| 2 years (2018-10-01) | -18.94% |
| 3 years (2017-09-29) | 11.00% |
| 5 years (2015-10-01) | 245.02% |
Is Arista Networks under- or over-valued?
Valuing Arista Networks stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Arista Networks's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Arista Networks's P/E ratio
Arista Networks's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 21x. In other words, Arista Networks shares trade at around 21x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
Arista Networks's PEG ratio
Arista Networks's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.8085. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Arista Networks's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Arista Networks's EBITDA
Arista Networks's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$770.4 million.
The EBITDA is a measure of a Arista Networks's overall financial performance and is widely used to measure a its profitability.
Arista Networks financials
| Revenue TTM | USD$2.3 billion |
|---|---|
| Operating margin TTM | 32.29% |
| Gross profit TTM | USD$1.5 billion |
| Return on assets TTM | 11.78% |
| Return on equity TTM | 27.07% |
| Profit margin | 33.16% |
| Book value | $39.973 |
| Market capitalisation | USD$15.1 billion |
TTM: trailing 12 months
Shorting Arista Networks shares
There are currently 3.3 million Arista Networks shares held short by investors – that's known as Arista Networks's "short interest". This figure is 0.1% down from 3.3 million last month.
There are a few different ways that this level of interest in shorting Arista Networks shares can be evaluated.
Arista Networks's "short interest ratio" (SIR)
Arista Networks's "short interest ratio" (SIR) is the quantity of Arista Networks shares currently shorted divided by the average quantity of Arista Networks shares traded daily (recently around 634408.65384615). Arista Networks's SIR currently stands at 5.2. In other words for every 100,000 Arista Networks shares traded daily on the market, roughly 5200 shares are currently held short.
However Arista Networks's short interest can also be evaluated against the total number of Arista Networks shares, or, against the total number of tradable Arista Networks shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Arista Networks's short interest could be expressed as 0.04% of the outstanding shares (for every 100,000 Arista Networks shares in existence, roughly 40 shares are currently held short) or 0.0713% of the tradable shares (for every 100,000 tradable Arista Networks shares, roughly 71 shares are currently held short).
A SIR below 10% would generally be considered to indicate a fairly optimistic outlook for the share price, with fewer people currently willing to bet against Arista Networks.
Find out more about how you can short Arista Networks stock.
Arista Networks's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Arista Networks.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Arista Networks's total ESG risk score
Total ESG risk: 20.62
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Arista Networks's overall score of 20.62 (as at 08/01/2020) is excellent – landing it in it in the 16th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Arista Networks is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Arista Networks's environmental score
Environmental score: 2.4/100
Arista Networks's environmental score of 2.4 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Arista Networks is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Arista Networks's social score
Social score: 10.06/100
Arista Networks's social score of 10.06 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Arista Networks is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Arista Networks's governance score
Governance score: 9.16/100
Arista Networks's governance score puts it squarely in the 4th percentile of companies rated in the same sector. That could suggest that Arista Networks is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Arista Networks's controversy score
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Arista Networks scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Arista Networks has, for the most part, managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
Arista Networks, Inc was last rated for ESG on: 2020-08-01.
| Total ESG score | 20.62 |
|---|---|
| Total ESG percentile | 15.66 |
| Environmental score | 2.4 |
| Environmental score percentile | 4 |
| Social score | 10.06 |
| Social score percentile | 4 |
| Governance score | 9.16 |
| Governance score percentile | 4 |
| Level of controversy | 2 |
Arista Networks share dividends
We're not expecting Arista Networks to pay a dividend over the next 12 months.
Arista Networks share price volatility
Over the last 12 months, Arista Networks's shares have ranged in value from as little as $156.63 up to $267.3. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Arista Networks's is 1.0474. This would suggest that Arista Networks's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).
Arista Networks overview
Arista Networks, Inc. develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company's cloud networking solutions consist of extensible operating systems, a set of network applications, as well as gigabit Ethernet switching and routing platforms, including universal leaf, spline, and universal spine products. It also provides post contract customer support services, such as technical support, hardware repair and parts replacement beyond standard warranty, bug fix, patch, and upgrade services. The company serves a range of industries comprising Internet companies, service providers, financial services organizations, government agencies, media and entertainment companies, and others. It markets and sells its products through distributors, value-added resellers, system integrators, and original equipment manufacturer partners, as well as through its direct sales force. Arista Networks, Inc. has a strategic partnership with Forescout Technologies, Inc. to reduce cybersecurity risks brought on by growth of IoT devices, network complexity, and propagation of malware. The company was formerly known as Arastra, Inc. and changed its name to Arista Networks, Inc. in October 2008. Arista Networks, Inc. was founded in 2004 and is headquartered in Santa Clara, California.
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