Arista Networks (NASDAQ: ANET) President and Chief Technology Officer Kenneth Duda reported direct sales of common stock totaling $4.5 million on February 17, 2026. The disposals were executed at prices ranging from $141.1477 to $144.74 per share, above the contemporaneous market price of $137.23.
The company, a communications equipment provider with a market capitalization of $172 billion, has produced a 33% return over the past year and trades at a price-to-earnings ratio of 49. According to InvestingPro analysis cited with the transaction disclosure, the stock appears to be overvalued at current levels, and 14 additional ProTips are available to subscribers.
Details of Duda's reported disposals list five direct sales of common stock in separate blocks: 6,069 shares, 10,363 shares, 10,989 shares, 4,524 shares, and 55 shares. In parallel with these sales, Duda exercised stock options to acquire 32,000 shares of Arista common stock at an exercise price of $15.2625 per share, for a total exercise value of $488,400.
The direct sales were carried out pursuant to a Rule 10b5-1 trading plan. In addition, filings disclose indirect sales attributable to affiliated entities: transactions executed by a 501(c) foundation, for which Duda and his spouse are co-trustees, totaled $1.4 million, with prices again in the $141.1477 to $144.74 range. A separate trust established for the benefit of Duda's children reported indirect sales totaling $2.3 million at the same price band.
Those disclosures arrive in the same period that Arista published fourth-quarter 2025 results that exceeded consensus expectations. The company reported adjusted earnings per share of $0.82, ahead of the $0.76 consensus, and revenue of $2.49 billion versus forecasts of $2.38 billion. Following the quarter, Arista raised its fiscal 2026 revenue guidance by approximately 6%.
Market analysts reacted to the results and the raised guidance with upward revisions to price targets. Piper Sandler increased its target to $175 and kept an Overweight rating, while Needham raised its target to $185 and maintained a Buy rating. Both firms cited growth in artificial intelligence as a factor underpinning their revised valuations.
Despite the earnings beat and the upgraded guidance, Arista's shares moved lower in after-hours trading, a development the filings attribute to broader market trends and potential future uncertainties.
For investors and market observers, the combination of insider sales under a 10b5-1 plan, concurrent option exercises, and an earnings beat with raised guidance creates multiple datapoints to weigh. Additional detailed analysis is available through a Pro Research Report referenced in the disclosure.