This Insider Has Just Sold Shares In Arista Networks

We wouldn't blame Arista Networks, Inc. (NYSE:ANET) shareholders if they were a little worried about the fact that Kenneth Duda, the Co-Founder recently netted about US$4.7m selling shares at an average price of US$326. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.3%.

See our latest analysis for Arista Networks

Arista Networks Insider Transactions Over The Last Year

In fact, the recent sale by Kenneth Duda was the biggest sale of Arista Networks shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$317. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Arista Networks

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Arista Networks insiders own 18% of the company, currently worth about US$18b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Arista Networks Insiders?

An insider sold Arista Networks shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Arista Networks makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Arista Networks. Every company has risks, and we've spotted 1 warning sign for Arista Networks you should know about.

Of course Arista Networks may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.