Form 4: Arista Networks CTO Sells Shares Under 10b5-1 Plan

Arista Networks President and CTO Kenneth Duda executed pre-planned sales of company common stock and exercised stock options on November 17, 2025.

Summary

• Kenneth Duda, President and CTO of Arista Networks, engaged in multiple transactions on November 17, 2025.
• Exercised 30,000 non-qualified stock options at an exercise price of $3.515 per share.
• Sold 30,000 shares of common stock directly at weighted average prices ranging from $125.8977 to $132.2978.
• An additional 16,020 shares were sold from a Children's Trust, and 9,291 shares from a 501(c) Foundation, both associated with Mr. Duda, at similar weighted average prices.
• All sales were conducted under Rule 10b5-1 trading plans established on March 13, 2025.
• Following these transactions, Mr. Duda directly owns 12,976 shares of common stock and 60,000 derivative securities (options).
• Indirect beneficial ownership includes 1,159,168 shares via Children's Trust, 542,400 shares via Foundation, 762,035 shares via GRAT JD, 762,035 shares via GRAT KD, and 9,303 shares via a family trust.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to significant insider selling, even though it was pre-planned under a 10b5-1 plan. The exercise of options is positive, but the net effect is a reduction in direct and indirect holdings by a key executive.

Positives

• Exercise of 30,000 non-qualified stock options at a low exercise price of $3.515, indicating a significant in-the-money position.
• The transactions were executed under a Rule 10b5-1 trading plan, demonstrating pre-planned activity rather than reactive selling.

Negatives

• Significant insider selling of common stock by a key executive (President and CTO) and associated entities, totaling 55,311 shares (30,000 direct + 16,020 Children's Trust + 9,291 Foundation).

Future Outlook

NA

Industry Context

NA

Related Party Transactions

• Sales of shares were made from a Children's Trust for which the reporting person serves as co-trustee.
• Sales of shares were made from a 501(c) Foundation for which the reporting person and his spouse serve as co-trustee.
• Shares are held by Jennifer Duda Annuity Trusts (spouse as trustee) and Kenneth Duda Annuity Trusts (reporting person as trustee).
• Shares are held by a family trust for which the reporting person is co-trustee.

Stakeholder Impact

• Shareholders: May interpret the insider selling as a signal, though the 10b5-1 plan mitigates immediate concerns about reactive selling.

Key Dates

Keywords

Arista Networks, ANET, Kenneth Duda, Insider Trading, Form 4, Stock Option Exercise, Share Sale, 10b5-1 Plan, Executive Compensation, Corporate Governance