A10 Networks (NYSE:ATEN) Hits New 1-Year High - What's Next?

Key Points

• A10 Networks shares hit a new 52-week high, trading as high as $35.59 and closing near $35.20, reflecting strong recent momentum in the stock.
• Recent analyst action has been broadly supportive, with BTIG raising its target to $37 and keeping a buy rating; the overall consensus remains a “Moderate Buy” with a $30.71 average price target.
• The company’s latest earnings topped expectations, with Q1 EPS of $0.24 vs. $0.22 expected and revenue of $75 million, while it also paid a quarterly dividend of $0.06 per share.

A10 Networks, Inc. (NYSE:ATEN - Get Free Report) shares reached a new 52-week high during mid-day trading on Monday . The company traded as high as $35.59 and last traded at $35.20, with a volume of 9031 shares traded. The stock had previously closed at $34.98.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the company. BTIG Research raised their price target on A10 Networks from $30.00 to $37.00 and gave the company a "buy" rating in a research note on Thursday, June 18th. Zacks Research upgraded shares of A10 Networks from a "hold" rating to a "strong-buy" rating in a report on Friday, May 1st. Weiss Ratings raised shares of A10 Networks from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday. Wall Street Zen downgraded A10 Networks from a "buy" rating to a "hold" rating in a research report on Saturday, June 20th. Finally, DNB Markets set a $9.00 price objective on A10 Networks in a report on Monday, March 9th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $30.71.

A10 Networks Stock Performance

The company has a current ratio of 3.71, a quick ratio of 3.56 and a debt-to-equity ratio of 0.99. The company has a market cap of $2.58 billion, a PE ratio of 57.77 and a beta of 1.20. The firm's 50-day simple moving average is $29.80 and its two-hundred day simple moving average is $23.35.

A10 Networks (NYSE:ATEN - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The communications equipment provider reported $0.24 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.22 by $0.02. A10 Networks had a net margin of 14.90% and a return on equity of 25.00%. The business had revenue of $75.00 million during the quarter, compared to analysts' expectations of $72.61 million. During the same quarter last year, the company posted $0.20 earnings per share. The business's quarterly revenue was up 13.4% on a year-over-year basis. A10 Networks has set its FY 2026 guidance at 0.640-0.650 EPS. As a group, research analysts anticipate that A10 Networks, Inc. will post 0.83 earnings per share for the current fiscal year.

A10 Networks Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 1st. Shareholders of record on Friday, May 15th were given a dividend of $0.06 per share. The ex-dividend date of this dividend was Friday, May 15th. This represents a $0.24 dividend on an annualized basis and a yield of 0.7%. A10 Networks's payout ratio is currently 38.71%.

Insiders Place Their Bets

In other A10 Networks news, Director Eric Singer sold 24,698 shares of the business's stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $27.21, for a total transaction of $672,032.58. Following the sale, the director owned 68,806 shares in the company, valued at approximately $1,872,211.26. The trade was a 26.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.21% of the company's stock.

Institutional Investors Weigh In On A10 Networks

A number of institutional investors and hedge funds have recently modified their holdings of ATEN. Royal Bank of Canada increased its holdings in A10 Networks by 131.3% in the 1st quarter. Royal Bank of Canada now owns 213,118 shares of the communications equipment provider's stock worth $3,482,000 after buying an additional 120,966 shares during the period. Goldman Sachs Group Inc. lifted its stake in A10 Networks by 6.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 835,252 shares of the communications equipment provider's stock valued at $13,648,000 after acquiring an additional 51,086 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of A10 Networks by 5.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 202,658 shares of the communications equipment provider's stock valued at $3,311,000 after acquiring an additional 11,268 shares during the last quarter. Jane Street Group LLC increased its stake in shares of A10 Networks by 120.0% in the first quarter. Jane Street Group LLC now owns 173,493 shares of the communications equipment provider's stock worth $2,835,000 after acquiring an additional 94,641 shares during the period. Finally, Intech Investment Management LLC raised its holdings in shares of A10 Networks by 81.7% during the first quarter. Intech Investment Management LLC now owns 73,995 shares of the communications equipment provider's stock worth $1,209,000 after purchasing an additional 33,262 shares during the last quarter. Institutional investors and hedge funds own 98.61% of the company's stock.

About A10 Networks

A10 Networks, Inc NYSE: ATEN, headquartered in San Jose, California, designs and sells networking and security solutions that accelerate application performance and protect data across on-premises, cloud and hybrid environments. Founded in 2004, the company's offerings target enterprises, service providers and cloud operators seeking high availability, secure access and optimized traffic delivery for critical applications.

The company's core portfolio includes application delivery controllers (ADCs) for load balancing and traffic management, advanced distributed denial-of-service (DDoS) protection appliances, SSL inspection solutions and carrier-grade NAT (CGNAT) platforms.

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