Arista Networks (NYSE: ANET) founder and CEO Jayshree Ullal has been selling Arista shares at a ferocious pace over the last six months, dumping about $60 million worth of stock, or 7% of her entire position in the company, since the beginning of the year.
The sales have come during a powerful rally in the stock over the last two months. Arista was trading above $80 recently, after bottoming out around $60 in February. Shares slumped last summer after Arista's chief rival, Cisco Systems, announced it was suing Arista for intellectual property theft. Ullal is a fomer Cisco executive who left the networking giant to start Arista.
The lawsuit, a rare one for Cisco, weighed on Arista shares for several months before investors started to shrug it off. Many Wall Street analysts have built in several millions of dollars in quarterly legals costs and an eventual settlement on the lawsuit, which might be in the triple-digit millions, in light of simliar technology lawsuits. A settlement in the hundreds of millions would have a signficant earnings impact on Arista but would not put it out of business. The company holds $500 million in cash and is profitable.