A10 Networks (NYSE:ATEN) Shares Pass Above 50-Day Moving Average - Here's Why

Key Points

• A10 Networks shares rose above their 50-day moving average, trading as high as $31.50 and last changing hands around $31.01, up 1.4% on the day.
• The company beat quarterly earnings and revenue estimates, reporting EPS of $0.24 versus $0.22 expected and revenue of $75.0 million versus $72.62 million expected, with revenue up 13.4% year over year.
• Analyst sentiment has turned constructive, with several firms raising price targets or upgrading the stock; MarketBeat lists A10 Networks with a “Moderate Buy” rating and an average target price of $23.86.

A10 Networks, Inc. (NYSE:ATEN - Get Free Report)'s share price crossed above its 50-day moving average during trading on Monday . The stock has a 50-day moving average of $27.29 and traded as high as $31.50. A10 Networks shares last traded at $31.0110, with a volume of 1,009,678 shares traded.

Analyst Upgrades and Downgrades

ATEN has been the topic of a number of analyst reports. BWS Financial lifted their price objective on A10 Networks from $28.00 to $30.00 and gave the stock a "buy" rating in a research report on Wednesday, April 29th. DNB Markets set a $9.00 price objective on A10 Networks in a research report on Monday, March 9th. Wall Street Zen upgraded A10 Networks from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Weiss Ratings upgraded A10 Networks from a "hold (c)" rating to a "hold (c+)" rating in a research report on Monday, May 11th. Finally, BTIG Research lifted their price objective on A10 Networks from $22.00 to $30.00 and gave the stock a "buy" rating in a research report on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, A10 Networks has an average rating of "Moderate Buy" and an average target price of $23.86.

A10 Networks Trading Up 1.4%

The company has a 50 day moving average price of $27.29 and a 200 day moving average price of $21.78. The firm has a market cap of $2.23 billion, a price-to-earnings ratio of 50.02 and a beta of 1.20. The company has a debt-to-equity ratio of 0.99, a quick ratio of 3.56 and a current ratio of 3.71.

A10 Networks (NYSE:ATEN - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The communications equipment provider reported $0.24 EPS for the quarter, beating the consensus estimate of $0.22 by $0.02. A10 Networks had a return on equity of 25.00% and a net margin of 14.90%.The business had revenue of $75.00 million for the quarter, compared to analyst estimates of $72.62 million. During the same quarter in the prior year, the company posted $0.20 EPS. The company'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. On average, research analysts expect that A10 Networks, Inc. will post 0.83 earnings per share for the current year.

A10 Networks Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Friday, May 15th were paid a $0.06 dividend. This represents a $0.24 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Friday, May 15th. A10 Networks's dividend payout ratio is 38.71%.

Insider Activity at A10 Networks

In other news, Director Eric Singer sold 24,698 shares of the company's stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $27.21, for a total value of $672,032.58. Following the transaction, the director owned 68,806 shares of the company's stock, valued at $1,872,211.26. This represents a 26.41% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.21% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On A10 Networks

Large investors have recently modified their holdings of the business. JPMorgan Chase & Co. grew its stake in shares of A10 Networks by 18.9% in the third quarter. JPMorgan Chase & Co. now owns 380,161 shares of the communications equipment provider's stock valued at $6,900,000 after buying an additional 60,372 shares in the last quarter. Aptus Capital Advisors LLC grew its stake in shares of A10 Networks by 38.5% in the third quarter. Aptus Capital Advisors LLC now owns 448,423 shares of the communications equipment provider's stock valued at $8,139,000 after buying an additional 124,731 shares in the last quarter. First Trust Advisors LP grew its stake in shares of A10 Networks by 4.4% in the third quarter. First Trust Advisors LP now owns 2,034,271 shares of the communications equipment provider's stock valued at $36,922,000 after buying an additional 84,848 shares in the last quarter. Barclays PLC grew its stake in shares of 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 in the last quarter. Finally, AlphaQuest LLC grew its stake in shares of 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 in the last quarter. 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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