Here’s Why You Should Consider Taking Profits From Your Arista Networks (ANET) Shares

Artisan Partners, a high value-added investment management firm, published its ‘Artisan Mid Cap Fund’ fourth quarter 2021 investor letter – a copy of which can be downloaded here. A return of -0.72% was recorded by its Investor Class: ARTMX, -0.68% by its Advisor Class: APDMX, and -0.66% by its Institutional Class: APHMX, in the fourth quarter of 2021, all underperforming the Russell Midcap® Growth Index that delivered a 2.85% return, and the Russell Midcap® Index that was up by 6.44% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Artisan Mid Cap Fund, in its Q4 2021 investor letter, mentioned Arista Networks, Inc. (NYSE: ANET) and discussed its stance on the firm. Arista Networks, Inc. is a Santa Clara, California-based computer networking company with a $38.6 billion market capitalization. ANET delivered a -34.94% return since the beginning of the year, while its 12-month returns are down by -58.24%. The stock closed at $125.92 per share on February 22, 2022.

Here is what Artisan Mid Cap Fund has to say about Arista Networks, Inc. in its Q4 2021 investor letter:

“Arista Networks is the market leader for cloud networking equipment used in data centers for public, private and hybrid cloud deployments. The company’s top line growth has recently been bolstered by 400G deployments—the next generation of tech powering data centers—and further enterprise network penetration as customers migrate away from Cisco (~80% market share vs. ~5% for Arista). While the profit cycle is nicely in motion, we pared our exposure as shares began to approach our PMV estimate.”

Our calculations show that Arista Networks, Inc. (NYSE: ANET) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. ANET was in 38 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 32 funds in the previous quarter. Arista Networks, Inc. (NYSE: ANET) delivered a -41.33% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on ANET in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.