A10 Networks (NYSE:ATEN) Issues Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• EPS beat: A10 reported quarterly EPS of $0.24, beating estimates by $0.02, and posted revenue of $75.0M versus estimates of $72.61M, with a net margin of 14.5% and ROE of 24.1%.
• Shares rose to $28.11 on the news, valuing the company at $2.02B with a PE of 48.47, and the company pays a quarterly dividend of $0.06 (annualized $0.24, yield 0.9%).
• Analysts maintain a Moderate Buy consensus with an average price target of $22.13, while the CEO recently sold 33,334 shares and institutional ownership stands at about 98.6%.

A10 Networks (NYSE:ATEN - Get Free Report) posted its quarterly earnings data on Tuesday. The communications equipment provider reported $0.24 earnings per share for the quarter, beating analysts' consensus estimates of $0.22 by $0.02, FiscalAI reports. A10 Networks had a return on equity of 24.10% and a net margin of 14.50%.The company had revenue of $75.00 million during the quarter, compared to analyst estimates of $72.61 million.

A10 Networks Stock Performance

Shares of ATEN traded up $0.42 during trading hours on Tuesday, hitting $28.11. The stock had a trading volume of 1,093,458 shares, compared to its average volume of 945,830. The firm has a market capitalization of $2.02 billion, a PE ratio of 48.47 and a beta of 1.09. The company has a debt-to-equity ratio of 1.03, a current ratio of 3.56 and a quick ratio of 3.43. The stock has a fifty day moving average price of $22.72 and a 200 day moving average price of $19.55. A10 Networks has a 12 month low of $15.91 and a 12 month high of $28.59.

A10 Networks Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, March 2nd. Investors of record on Monday, February 16th were issued a $0.06 dividend. The ex-dividend date of this dividend was Friday, February 13th. This represents a $0.24 annualized dividend and a dividend yield of 0.9%. A10 Networks's payout ratio is presently 41.38%.

Wall Street Analysts Forecast Growth

A number of research firms have commented on ATEN. Sidoti reissued a "neutral" rating and issued a $24.00 target price on shares of A10 Networks in a report on Monday, April 20th. BWS Financial lifted their target price on A10 Networks from $24.00 to $28.00 and gave the stock a "buy" rating in a report on Friday, February 20th. Mizuho lifted their target price on A10 Networks from $23.00 to $27.00 and gave the stock a "neutral" rating in a report on Tuesday, April 14th. BTIG Research reissued a "buy" rating and issued a $22.00 target price on shares of A10 Networks in a report on Friday, February 20th. Finally, Loop Capital set a $25.00 target price on A10 Networks in a report on Monday, March 9th. Four equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, A10 Networks currently has a consensus rating of "Moderate Buy" and an average price target of $22.13.

Insider Activity at A10 Networks

In related news, CEO Dhrupad Trivedi sold 33,334 shares of the business's stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $20.55, for a total value of $685,013.70. Following the sale, the chief executive officer directly owned 713,597 shares in the company, valued at approximately $14,664,418.35. The trade was a 4.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 1.21% of the stock is owned by insiders.

Hedge Funds Weigh In On A10 Networks

Several hedge funds have recently made changes to their positions in the company. Pacer Advisors Inc. increased its position in shares of A10 Networks by 46.4% in the 4th quarter. Pacer Advisors Inc. now owns 13,592 shares of the communications equipment provider's stock valued at $240,000 after acquiring an additional 4,305 shares during the period. Invesco Ltd. lifted its holdings in shares of A10 Networks by 12.8% in the 4th quarter. Invesco Ltd. now owns 836,178 shares of the communications equipment provider's stock valued at $14,792,000 after buying an additional 95,148 shares during the period. XTX Topco Ltd purchased a new stake in shares of A10 Networks in the fourth quarter worth about $769,000. Tudor Investment Corp ET AL boosted its stake in shares of A10 Networks by 16.0% in the fourth quarter. Tudor Investment Corp ET AL now owns 370,444 shares of the communications equipment provider's stock worth $6,553,000 after buying an additional 51,022 shares during the last quarter. Finally, Millennium Management LLC boosted its stake in shares of A10 Networks by 46.4% in the fourth quarter. Millennium Management LLC now owns 212,072 shares of the communications equipment provider's stock worth $3,752,000 after buying an additional 67,227 shares during the last quarter. 98.61% of the stock is owned by institutional investors and hedge funds.

A10 Networks Company Profile

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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