Arista Networks Inc ANET will be reporting its fourth-quarter earnings on Tuesday. Wall Street expects 57 cents in EPS and $1.90 billion in revenues as the company reports after market hours.
The stock is up 64.67% over the past year, down 4.40% YTD.
David Tepper Exits ANET Stock
Ahead of Arista’s fourth-quarter earnings, hedge fund manager David Tepper‘s Appaloosa LP exited its position in the stock, according to its latest 13F filing. The move comes as part of a broader portfolio reshuffle that saw reductions in semiconductor holdings and increased bets on other tech and industrial stocks.
While the fund’s exit doesn’t necessarily reflect Arista Network’s fundamentals, it could indicate a shift in risk appetite or sector preferences, adding another layer of intrigue to the company’s upcoming earnings report.
Let’s look at what the charts indicate for Arista Networks stock and how the stock currently maps against Wall Street estimates.
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Arista Bearish Ahead Of Q4 Earnings
Arista is facing strong bearish momentum, with the stock, at $110.67, trading below key exponential moving averages (EMA) of five, 20 and 50 days. This persistent selling pressure suggests a heightened risk of further downside movement.
Chart created using Benzinga Pro
Additionally, the stock is below its eight-day simple moving average (SMA) of $113.47, its 20-day SMA of $115.02 and its 50-day SMA of $113.36, all of which reinforce a bearish technical setup. However, Arista’s shares remain above the 200-day SMA of $94.55, indicating that long-term support remains intact.
Momentum indicators also point to ongoing weakness. The Moving Average Convergence Divergence (MACD) indicator sits at a negative 0.80, signaling a bearish trend. Meanwhile, the Relative Strength Index (RSI) is at 46.71, suggesting the stock is nearing oversold territory but not yet at extreme levels.
While short-term signals remain bearish, a potential bounce could emerge if the stock finds support near its 200-day SMA. Investors may want to monitor whether Arista stock can reclaim key moving averages or if selling pressure persists, signaling further downside risk.
Arista Networks Analysts See 5% Upside
Ratings & Consensus Estimates: The consensus analyst rating on Arista stands at a Buy currently with a price target of $282.78. The latest analyst ratings from Rosenblatt, Goldman Sachs and Evercore ISI imply a 4.75% upside for ANET stock with a $115 average price target.
Price Action: Arista Networks stock closed the trading day Friday at $106.87, down 2.62%.
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