Bank of America Corp DE Makes New $17.24 Million Investment in A10 Networks, Inc. $ATEN

Key Points

• Bank of America acquired 461,387 A10 Networks shares worth approximately $17.24 million, representing about 0.64% of the company. Institutional investors collectively own 98.61% of A10 Networks, with BlackRock also establishing a significant new position.
• A10 Networks exceeded quarterly expectations, reporting $0.25 in EPS versus the $0.24 consensus and $80.14 million in revenue, up 15.5% year over year. The company also declared a quarterly dividend of $0.06, equivalent to an annualized yield of about 0.9%.
• Analysts remain cautious: A10 Networks has an average “Hold” rating and a consensus price target of $30.88, compared with shares opening at $25.97. Two insiders sold shares under pre-arranged Rule 10b5-1 trading plans.

Bank of America Corp DE bought a new stake in A10 Networks, Inc. (NYSE:ATEN - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 461,387 shares of the communications equipment provider's stock, valued at approximately $17,237,000. Bank of America Corp DE owned approximately 0.64% of A10 Networks as of its most recent SEC filing.

Other hedge funds have also made changes to their positions in the company. BlackRock Inc. acquired a new position in shares of A10 Networks in the 2nd quarter valued at $506,919,000. Walleye Capital LLC acquired a new position in shares of A10 Networks in the 1st quarter worth approximately $115,600,000. Boston Trust Walden Corp boosted its position in shares of A10 Networks by 11.2% during the 2nd quarter. Boston Trust Walden Corp now owns 2,416,808 shares of the communications equipment provider's stock worth $90,292,000 after purchasing an additional 243,547 shares during the period. Arrowstreet Capital Limited Partnership boosted its position in shares of A10 Networks by 36.7% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,497,144 shares of the communications equipment provider's stock worth $34,614,000 after purchasing an additional 401,857 shares during the period. Finally, Punch & Associates Investment Management Inc. raised its position in A10 Networks by 1.7% in the first quarter. Punch & Associates Investment Management Inc. now owns 1,459,910 shares of the communications equipment provider's stock valued at $33,753,000 after purchasing an additional 24,284 shares during the period. Hedge funds and other institutional investors own 98.61% of the company's stock.

Insider Activity

In other news, General Counsel Robert Weber sold 14,086 shares of the stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $27.86, for a total value of $392,435.96. Following the completion of the sale, the general counsel directly owned 50,586 shares of the company's stock, valued at approximately $1,409,325.96. This represents a 21.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Dana Wolf sold 2,652 shares of the firm's stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $25.65, for a total transaction of $68,023.80. Following the transaction, the director owned 57,409 shares in the company, valued at approximately $1,472,540.85. This trade represents a 4.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.21% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on ATEN. BTIG Research reissued a "buy" rating and set a $37.00 target price on shares of A10 Networks in a research note on Thursday, August 6th. Deutsche Bank Aktiengesellschaft started coverage on A10 Networks in a research report on Monday, August 31st. They issued a "hold" rating and a $28.00 target price for the company. Mizuho upped their target price on shares of A10 Networks from $30.00 to $34.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 15th. Wall Street Zen cut shares of A10 Networks from a "buy" rating to a "hold" rating in a research report on Saturday, June 20th. Finally, Weiss Ratings downgraded shares of A10 Networks from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, September 17th. Two equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, A10 Networks presently has an average rating of "Hold" and a consensus price target of $30.88.

A10 Networks Trading Down 2.9%

Shares of NYSE:ATEN opened at $25.97 on Friday. A10 Networks, Inc. has a 52 week low of $16.52 and a 52 week high of $38.49. The company's 50 day moving average is $27.90 and its two-hundred day moving average is $28.47. The company has a market cap of $1.89 billion, a PE ratio of 43.28 and a beta of 1.13.

A10 Networks (NYSE:ATEN - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The communications equipment provider reported $0.25 earnings per share for the quarter, beating analysts' consensus estimates of $0.24 by $0.01. The company had revenue of $80.14 million for the quarter, compared to analysts' expectations of $77.28 million. A10 Networks had a return on equity of 23.63% and a net margin of 13.85%.A10 Networks's quarterly revenue was up 15.5% on a year-over-year basis. During the same period last year, the firm earned $0.21 earnings per share. A10 Networks has set its FY 2026 guidance at 0.650-0.661 EPS. As a group, equities research analysts expect that A10 Networks, Inc. will post 0.81 EPS for the current year.

A10 Networks Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Monday, August 17th were given a $0.06 dividend. The ex-dividend date of this dividend was Monday, August 17th. This represents a $0.24 dividend on an annualized basis and a yield of 0.9%. A10 Networks's payout ratio is 40.00%.

A10 Networks Company Profile

A10 Networks, Inc is a cybersecurity and application networking company that provides solutions designed to improve the performance, availability and security of enterprise and service-provider networks. Its offerings help organizations manage application traffic, protect online services from cyber threats and support the delivery of digital services across data centers, private clouds and public cloud environments.

The company's portfolio has included the Thunder family of products, such as application delivery controllers, carrier-grade networking solutions, cloud firewalls and SSL inspection platforms.

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