Arista Networks’ (ANET) president sold company stock during the recent downturn in artificial intelligence-related securities.
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Filings with the U.S. Securities and Exchange Commission (SEC) show that Arista Networks president and chief technology officer (CTO) Kenneth Duda, sold 55,653 shares of company stock on Nov. 17 for proceeds of $7.2 million.
The sales occurred in multiple transactions with prices ranging from $125.89 to $132.29. A total of 21,755 shares were sold directly for approximately $2.8 million. The share sale also came as ANET stock got caught up in the downturn in AI stocks, falling 11% in the past month.
Arista Networks’ Role in AI
Arista Networks makes the network switches that are used in the data centers and cloud computing that are helping to drive the AI boom. The company’s technology is also widely used in high-performance computing and for high-frequency trading.
The downturn in ANET stock comes despite the company reporting strong financial results for this year’s third quarter. Arista Networks announced earnings per share (EPS) of $0.75 and revenue of $2.31 billion, both of which beat Wall Street forecasts. The company also provided a strong outlook for the current quarter and reaffirmed its long-term outlook for AI and cloud.
Is ANET Stock a Buy?
Arista Networks’ stock has a consensus Strong Buy rating among 19 Wall Street analysts. That rating is based on 16 Buy and three Hold recommendations issued in the last three months. The average ANET price target of $170.20 implies 30.88% upside from current levels.
Read more analyst ratings on ANET stock