Form 4: Arista Networks CEO Jayshree Ullal Executes Stock Option and Sells Shares Under 10b5-1 Plan

Arista Networks CEO Jayshree Ullal exercised stock options and sold shares of common stock on October 2, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• On October 2, 2024, Jayshree Ullal, CEO of Arista Networks, exercised stock options to acquire 836 shares of common stock at a price of $56.585 per share.
• Simultaneously, Ullal sold 836 shares of Arista Networks common stock at prices ranging from $381.82 to $389.83, resulting in the disposal of 10 shares at $381.82, 164 shares at a weighted average price of $383.155, 109 shares at a weighted average price of $384.5209, 155 shares at a weighted average price of $386.2748, 298 shares at a weighted average price of $388.7742 and 100 shares at a weighted average price of $389.6836.
• These transactions were executed under a pre-arranged Rule 10b5-1 trading plan adopted on December 13, 2023.
• Following these transactions, Ullal directly owns 17,681 shares of Arista Networks common stock.
• Ullal also has indirect ownership of shares held in trusts for her children, nephew, niece, and a family trust, totaling 3,212,092 shares.
• She also owns 2,500 non-qualified stock options.

Sentiment

Score: 6

Explanation: Neutral sentiment as the filing reflects routine transactions under a pre-existing trading plan. There's no indication of any significant positive or negative implications for the company.

Positives

• The CEO's transactions are being conducted under a pre-arranged 10b5-1 trading plan, which is generally viewed as a transparent and orderly way to manage stock sales.

Industry Context

This filing is a routine disclosure of insider transactions. It's common for executives to have pre-arranged trading plans to diversify their holdings and manage personal finances.

Comparison to Industry Standards

• Executive compensation packages often include stock options and restricted stock units, which vest over time.
• Sales under 10b5-1 plans are a common practice among executives at publicly traded companies, including peers like Cisco, Juniper Networks, and Hewlett Packard Enterprise.
• The volume of shares sold is relatively small compared to the total outstanding shares of Arista Networks.

Stakeholder Impact

• The transactions are unlikely to have a significant impact on shareholders, employees, customers, suppliers, or creditors, as they are part of a pre-planned trading strategy.

Key Dates