Arista Networks , Inc. (NYSE:ANET) President and CEO Jayshree Ullal has sold a substantial amount of company stock, according to a recent SEC filing. The transactions, which took place on May 10, 2024, involved the sale of a total of 22,958 shares of Arista Networks' common stock, valued at over $7.2 million.
The sales were executed in two different price brackets. A set of transactions totaling 11,194 shares were sold at a price of $299.99 per share, amounting to approximately $2.24 million. Another set, comprising 11,764 shares, was sold at prices ranging from $299.99 to $307.77, totaling around $4.98 million.
These transactions were made under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for buying and selling stocks at a time when they are not in possession of material non-public information. This plan had been established by Ullal on December 13, 2023, for the benefit of the reporting person's relatives.
It's important to note that some of the shares sold were held in trusts for the benefit of Ullal's family members. Ullal serves as trustee or co-trustee for these trusts and while she shares voting and investment control over the shares, she disclaims beneficial ownership.
After these transactions, the trusts for Child 1 and Child 2 each retained 1,624,800 shares of Arista Networks stock. Trusts for a nephew and niece each held 10,000 shares, and another family trust for which Ullal is co-trustee owned 6,444,492 shares. Additionally, Ullal directly owned 17,681 shares.
The sales were signed off by Isabelle Bertin-Bailly, Attorney-in-Fact for Jayshree Ullal, and reported in the SEC filing dated May 14, 2024.
InvestingPro Insights
Amidst the latest news of Arista Networks' CEO Jayshree Ullal selling a significant portion of her stock, investors may be curious about the current financial health and market performance of the company. According to InvestingPro data, Arista Networks (NYSE:ANET) boasts a robust market capitalization of $98.24 billion, reflecting its significant presence in the market.
The company's Price-to-Earnings (P/E) ratio, a key indicator of investor expectations, stands at 42.36, with a slight adjustment to 42.82 when considering the last twelve months as of Q1 2024. This metric, alongside a PEG Ratio of 0.85 for the same period, suggests a balance between the company's earnings and its growth rate, potentially indicating a fair valuation relative to its projected earnings growth.
With a substantial 25.22% revenue growth over the last twelve months leading up to Q1 2024, Arista Networks demonstrates a strong capacity to increase its earnings. This growth is complemented by a high gross profit margin of 62.94%, underscoring the company's efficiency in managing its cost of goods sold relative to its sales.
Two InvestingPro Tips that stand out in relation to the article are the company's healthy liquidity position, with liquid assets exceeding short-term obligations, and the fact that 24 analysts have revised their earnings upwards for the upcoming period. These insights could be particularly relevant for investors considering the context of the CEO's stock sale, as they provide a snapshot of the company's financial stability and the positive outlook held by market analysts.
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