BlackRock Inc. Makes New $506.92 Million Investment in A10 Networks, Inc. $ATEN

Key Points

• BlackRock acquired 13.57 million A10 Networks shares worth approximately $506.9 million, giving it an 18.85% stake. Institutional investors collectively own 98.61% of the company.
• Analysts maintain a consensus “Hold” rating with an average price target of $31.29, while individual targets range from $34 to $45.
• A10 Networks beat quarterly earnings and revenue estimates, reporting $0.25 EPS and $80.14 million in revenue, up 15.5% year over year. The company also declared a quarterly dividend of $0.06 per share, yielding about 1% annually.

BlackRock Inc. acquired a new stake in A10 Networks, Inc. (NYSE:ATEN - Free Report) in the 2nd quarter, according to its most recent disclosure with the SEC. The fund acquired 13,568,496 shares of the communications equipment provider's stock, valued at approximately $506,919,000. BlackRock Inc. owned approximately 18.85% of A10 Networks at the end of the most recent reporting period.

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

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on ATEN. Piper Sandler set a $45.00 price objective on shares of A10 Networks in a research note on Tuesday, June 16th. Mizuho raised their target price on A10 Networks from $30.00 to $34.00 and gave the company a "neutral" rating in a report on Wednesday, July 15th. Weiss Ratings upgraded A10 Networks from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, June 24th. BTIG Research reissued a "buy" rating and set a $37.00 price target on shares of A10 Networks in a report on Thursday, August 6th. Finally, Wall Street Zen downgraded A10 Networks from a "buy" rating to a "hold" rating in a research report on Saturday, June 20th. Two analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $31.29.

Insider Transactions at A10 Networks

In related news, General Counsel Robert Scott Weber sold 14,086 shares of A10 Networks stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $27.86, for a total transaction of $392,435.96. Following the sale, the general counsel directly owned 50,586 shares in the company, valued at $1,409,325.96. This trade represents a 21.78% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.21% of the stock is currently owned by company insiders.

A10 Networks Stock Performance

Shares of NYSE:ATEN opened at $25.24 on Tuesday. A10 Networks, Inc. has a 52-week low of $16.52 and a 52-week high of $38.49. The company has a market capitalization of $1.83 billion, a PE ratio of 42.07 and a beta of 1.16. The company has a fifty day moving average of $32.53 and a 200-day moving average of $27.55.

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

A10 Networks Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Monday, August 17th will be issued a $0.06 dividend. This represents a $0.24 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Monday, August 17th. A10 Networks's dividend payout ratio (DPR) is 40.00%.

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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