Is Arista Networks Inc (ANET) A Good Stock To Buy?

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Seeing as Arista Networks Inc (NYSE:ANET) has weathered bearish sentiment from hedge fund managers, logic holds that there exists a select few hedgies who were dropping their entire stakes heading into Q4. Interestingly, Stephen Mandel’s Lone Pine Capital cut the largest investment of all the hedgies monitored by Insider Monkey, valued at about $120.5 million in stock, and Brian Taylor’s Pine River Capital Management was right behind this move, as the fund sold off about $6.2 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Arista Networks Inc (NYSE:ANET) but similarly valued. These stocks are Dun & Bradstreet Corp (NYSE:DNB), Healthcare Trust Of America Inc (NYSE:HTA), First American Financial Corp (NYSE:FAF), and Jones Lang LaSalle Inc (NYSE:JLL). All of these stocks’ market caps are similar to ANET’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
DNB 21 236956 4
HTA 9 61443 -3
FAF 27 429615 0
JLL 24 798501 -3

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $382 million. That figure was $225 million in ANET’s case. First American Financial Corp (NYSE:FAF) is the most popular stock in this table. On the other hand Healthcare Trust Of America Inc (NYSE:HTA) is the least popular one with only 9 bullish hedge fund positions. Arista Networks Inc (NYSE:ANET) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard FAF might be a better candidate to consider taking a long position in.

Disclosure: None

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