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

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

Summary

• On April 2, 2024, Jayshree Ullal, CEO of Arista Networks, executed stock options and sold shares of Arista Networks common stock.
• These transactions were conducted under a pre-arranged Rule 10b5-1 trading plan adopted on December 13, 2023.
• Ullal exercised options to acquire 664 shares at $61.05 and 836 shares at $56.585.
• She then sold a total of 160 shares at $285.04, 160 shares at $286.835, 320 shares at $288.2825, 654 shares at $289.2921, 183 shares at $290.8387, 23 shares at $292.79, 4,500 shares at $291.7 held by Trust for Child 1, 4,500 shares at $291.7 held by Trust for Child 2, and 15,000 shares at $291.7 held by Trust.
• Following these transactions, Ullal directly owns 17,704 shares and indirectly owns 1,638,300 shares by Trust for Child 1, 1,638,300 shares by Trust for Child 2, 6,489,492 shares by Trust, 12,000 shares by Trust for Nephew, and 12,000 shares by Trust for Niece.
• The sales were executed at weighted average prices within specified ranges, and Ullal has committed to providing full information on individual transaction prices upon request.
• Ullal also serves as a trustee for family trusts that hold Arista Networks shares.

Sentiment

Score: 5

Explanation: Neutral sentiment as the document simply reports transactions under a pre-existing trading plan.

Future Outlook

The document does not contain specific forward-looking statements beyond the ongoing execution of the 10b5-1 trading plan.

Industry Context

Executive stock transactions are common and closely monitored, especially in the tech industry. Rule 10b5-1 plans are designed to allow insiders to sell shares without being accused of trading on non-public information.

Comparison to Industry Standards

• Executive compensation packages in the tech industry often include stock options and restricted stock units.
• Sales under 10b5-1 plans are a standard practice among executives to diversify their holdings and manage personal finances.
• The volume of shares sold is relatively small compared to the total outstanding shares of Arista Networks.

Stakeholder Impact

• The transactions may have a minor impact on shareholders due to the small volume of shares sold.
• The transactions do not directly impact employees, customers, suppliers, or creditors.

Key Dates