Hsbc Holdings PLC Raises Position in A10 Networks, Inc. $ATEN

Key Points

• Hsbc Holdings PLC boosted its stake in A10 Networks by 84.3% in the fourth quarter, bringing its holdings to 153,816 shares worth about $2.7 million.
• A10 Networks reported better-than-expected quarterly results, with EPS of $0.24 versus $0.22 expected and revenue of $75.0 million, up 13.4% year over year.
• The company also paid a quarterly dividend of $0.06 per share, equal to an annualized yield of about 0.7%, while analysts currently hold a Moderate Buy consensus with a $30.71 price target.

Hsbc Holdings PLC increased its stake in A10 Networks, Inc. (NYSE:ATEN - Free Report) by 84.3% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 153,816 shares of the communications equipment provider's stock after buying an additional 70,357 shares during the quarter. Hsbc Holdings PLC owned about 0.21% of A10 Networks worth $2,724,000 as of its most recent filing with the SEC.

Other hedge funds have also modified their holdings of the company. The Manufacturers Life Insurance Company boosted its holdings in A10 Networks by 2.1% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 36,438 shares of the communications equipment provider's stock worth $705,000 after acquiring an additional 737 shares during the period. Gamco Investors INC. ET AL lifted its position in shares of A10 Networks by 1.8% during the fourth quarter. Gamco Investors INC. ET AL now owns 42,750 shares of the communications equipment provider's stock worth $756,000 after purchasing an additional 750 shares in the last quarter. WINTON GROUP Ltd boosted its stake in shares of A10 Networks by 1.1% in the fourth quarter. WINTON GROUP Ltd now owns 71,527 shares of the communications equipment provider's stock valued at $1,265,000 after purchasing an additional 761 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of A10 Networks by 0.6% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 137,148 shares of the communications equipment provider's stock valued at $2,426,000 after purchasing an additional 861 shares during the period. Finally, Engineers Gate Manager LP grew its holdings in A10 Networks by 2.7% during the 4th quarter. Engineers Gate Manager LP now owns 39,850 shares of the communications equipment provider's stock valued at $705,000 after purchasing an additional 1,060 shares in the last quarter. 98.61% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on ATEN shares. Wall Street Zen lowered shares of A10 Networks from a "buy" rating to a "hold" rating in a report on Saturday, June 20th. DNB Markets set a $9.00 target price on A10 Networks in a research report on Monday, March 9th. Weiss Ratings upgraded A10 Networks from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday. Loop Capital set a $25.00 price target on A10 Networks in a report on Monday, March 9th. Finally, Mizuho increased their target price on A10 Networks from $27.00 to $30.00 and gave the company a "neutral" rating in a research note on Thursday, June 11th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $30.71.

Insider Buying and Selling

In other A10 Networks news, Director Eric Singer sold 24,698 shares of the firm'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 sale, the director directly owned 68,806 shares in the company, valued at approximately $1,872,211.26. This trade represents a 26.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 1.21% of the stock is currently owned by insiders.

A10 Networks Stock Down 0.1%

ATEN stock opened at $34.95 on Monday. The firm has a market cap of $2.52 billion, a price-to-earnings ratio of 56.37 and a beta of 1.20. A10 Networks, Inc. has a 1-year low of $16.52 and a 1-year high of $35.19. The firm has a fifty day moving average price of $29.80 and a two-hundred day moving average price of $23.35. The company has a debt-to-equity ratio of 0.99, a current ratio of 3.71 and a quick ratio of 3.56.

A10 Networks (NYSE:ATEN - Get Free Report) last posted 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 net margin of 14.90% and a return on equity of 25.00%. The business had revenue of $75.00 million during the quarter, compared to analyst estimates of $72.61 million. During the same period in the previous year, the business 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. Research analysts predict that A10 Networks, Inc. will post 0.83 EPS for the current year.

A10 Networks Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, June 1st. Shareholders of record on Friday, May 15th were paid a $0.06 dividend. 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 payout ratio is presently 38.71%.

A10 Networks 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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