Arista Networks Inc. (ANET) closed on June 4 at $166.01, down 4.8% from the previous trading day. Over the past three months, Arista Networks insiders sold stocks worth $314.9 million in total, with no insider buy records.
Valuation Metrics Comparison: PE at 56.9x Exceeds the Historical Average
ANET’s trailing price-to-earnings (TTM) ratio is 56.9x, higher than the five-year historical average PE of 41.1x, an increase of about 38%; the forward PE is 45.8x. GuruFocus’s GF Value intrinsic value estimate is $136.95. With the current share price at $166.01, the stock trades at a 21.2% premium to the GF Value.
Insider Ownership Trends
Over the past three months, Arista Networks insiders sold stocks worth $314.9 million, and there were no insider buying activities during the reporting period.
GF Score Subcomponent Ratings
GuruFocus GF Score™ 97/100, with subcomponent data:
Financial Strength: 10/10
Profitability: 10/10
Growth: 10/10
Valuation: 5/10
Momentum: 9/10
FAQs
Why does ANET show a “down then up” intraday move today?
According to reports, within the first hour after the market opened, ANET fell by nearly 2% to $158.51, triggering a clear buy signal. Then institutional and retail buying pushed the stock back up, reaching an intraday high of $167.72. It closed at $166.01, still down 4.8% from the previous trading day.
GF Score is 97, but the valuation score is only 5/10—how should this difference be understood?
GuruFocus’s GF Score is a composite indicator. Financial strength, profitability, and growth are all rated 10/10, but the valuation dimension (5/10) reflects that the current share price ($166.01) is significantly above the GF Value estimate of intrinsic value ($136.95), with an overvaluation of 21.2%. The two metrics measure different dimensions—business quality vs. whether the current stock price is reasonable.
What does the past three months’ insider selling of $314.9 million indicate?
The insider selling of $314.9 million is confirmed data from the past three months, and there were no insider purchases during the reporting period. Insider selling may reflect a range of reasons, including personal financial arrangements or stock compensation planning, but this figure is a publicly disclosed fact about changes in insider holdings.
