A10 Networks (NYSE:ATEN) Reaches New 12-Month High - Should You Buy?

Key Points

• A10 Networks hit a new 52-week high, trading as high as $34.15 after closing at $33.26 the prior day, reflecting strong recent stock momentum.
• Analyst sentiment is mixed but generally positive: the stock carries a Moderate Buy consensus, with a consensus target price of $29.62 and several recent target increases, including BWS Financial raising its target to $45.
• The company recently beat earnings and revenue estimates, posting $0.24 EPS on $75.0 million in revenue, while also announcing a quarterly dividend of $0.06 per share and maintaining solid liquidity.

A10 Networks, Inc. (NYSE:ATEN - Get Free Report) reached a new 52-week high during trading on Monday . The company traded as high as $34.15 and last traded at $34.2060, with a volume of 82551 shares changing hands. The stock had previously closed at $33.26.

Analysts Set New Price Targets

A number of brokerages have recently commented on ATEN. Loop Capital set a $25.00 price target on A10 Networks in a research note on Monday, March 9th. BWS Financial boosted their price objective on shares of A10 Networks from $30.00 to $45.00 and gave the company a "buy" rating in a report on Tuesday, June 16th. Sidoti reaffirmed a "neutral" rating and issued a $24.00 target price on shares of A10 Networks in a research note on Monday, April 20th. Weiss Ratings lowered shares of A10 Networks from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, June 9th. Finally, Mizuho lifted their price target on shares of A10 Networks from $27.00 to $30.00 and gave the stock a "neutral" rating in a research report on Thursday, June 11th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $29.62.

A10 Networks Price Performance

The company has a 50-day moving average of $28.86 and a 200-day moving average of $22.76. The company has a debt-to-equity ratio of 0.99, a quick ratio of 3.56 and a current ratio of 3.71. The firm has a market capitalization of $2.44 billion, a price-to-earnings ratio of 54.56 and a beta of 1.20.

A10 Networks (NYSE:ATEN - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The communications equipment provider reported $0.24 earnings per share for the quarter, beating analysts' consensus estimates of $0.22 by $0.02. The firm had revenue of $75.00 million for the quarter, compared to analyst estimates of $72.61 million. A10 Networks had a net margin of 14.90% and a return on equity of 25.00%. The business's revenue was up 13.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.20 earnings per share. 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 EPS for the current fiscal year.

A10 Networks Dividend Announcement

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

Insider Activity

In other 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 value of $672,032.58. Following the sale, the director directly owned 68,806 shares in the company, valued at $1,872,211.26. The trade was a 26.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 1.21% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On A10 Networks

A number of hedge funds and other institutional investors have recently bought and sold shares of ATEN. JPMorgan Chase & Co. lifted its stake in A10 Networks by 18.9% in the 3rd quarter. JPMorgan Chase & Co. now owns 380,161 shares of the communications equipment provider's stock valued at $6,900,000 after purchasing an additional 60,372 shares during the last quarter. Aptus Capital Advisors LLC grew its holdings in A10 Networks by 38.5% during the third quarter. Aptus Capital Advisors LLC now owns 448,423 shares of the communications equipment provider's stock worth $8,139,000 after purchasing an additional 124,731 shares during the period. First Trust Advisors LP increased its position in A10 Networks by 4.4% during the third quarter. First Trust Advisors LP now owns 2,034,271 shares of the communications equipment provider's stock worth $36,922,000 after buying an additional 84,848 shares during the last quarter. AlphaQuest LLC raised its stake in A10 Networks by 967.4% in the fourth quarter. AlphaQuest LLC now owns 162,685 shares of the communications equipment provider's stock valued at $2,878,000 after buying an additional 147,444 shares during the period. Finally, Barclays PLC raised its stake in A10 Networks by 103.7% in the third quarter. Barclays PLC now owns 1,365,259 shares of the communications equipment provider's stock valued at $24,779,000 after buying an additional 695,150 shares during the period. Institutional investors and hedge funds own 98.61% of the company's stock.

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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