UBS Group AG Cuts Stake in A10 Networks, Inc. $ATEN

Key Points

• UBS Group AG cut its A10 Networks stake by 29% in the fourth quarter, selling 175,957 shares and leaving it with 430,199 shares valued at about $7.61 million.
• A10 Networks posted a strong quarterly earnings beat, reporting $0.24 EPS versus $0.22 expected and revenue of $75 million, up 13.4% year over year.
• Analysts have turned more positive on the stock, with several price target increases and an average rating of Moderate Buy; the average target is $23.86.

UBS Group AG lowered its holdings in shares of A10 Networks, Inc. (NYSE:ATEN - Free Report) by 29.0% during the 4th quarter, according to the company in its most recent filing with the SEC. The fund owned 430,199 shares of the communications equipment provider's stock after selling 175,957 shares during the period. UBS Group AG owned about 0.60% of A10 Networks worth $7,610,000 as of its most recent filing with the SEC.

A number of other large investors also recently added to or reduced their stakes in the business. Jones Financial Companies Lllp grew its stake in shares of A10 Networks by 271.4% during the third quarter. Jones Financial Companies Lllp now owns 1,560 shares of the communications equipment provider's stock valued at $29,000 after buying an additional 1,140 shares during the last quarter. Farther Finance Advisors LLC increased its holdings in shares of A10 Networks by 92.4% in the fourth quarter. Farther Finance Advisors LLC now owns 2,255 shares of the communications equipment provider's stock worth $40,000 after buying an additional 1,083 shares during the period. Abich Financial Wealth Management LLC bought a new stake in shares of A10 Networks in the 3rd quarter valued at about $49,000. CWM LLC lifted its stake in shares of A10 Networks by 38.1% in the 3rd quarter. CWM LLC now owns 3,640 shares of the communications equipment provider's stock valued at $66,000 after acquiring an additional 1,005 shares during the last quarter. Finally, GAMMA Investing LLC boosted its holdings in A10 Networks by 42.0% during the 4th quarter. GAMMA Investing LLC now owns 4,411 shares of the communications equipment provider's stock valued at $78,000 after acquiring an additional 1,305 shares during the period. Hedge funds and other institutional investors own 98.61% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have commented on ATEN. DNB Markets set a $9.00 price target on A10 Networks in a research note on Monday, March 9th. BWS Financial raised their target price on shares of A10 Networks from $28.00 to $30.00 and gave the stock a "buy" rating in a report on Wednesday, April 29th. BTIG Research lifted their target price on shares of A10 Networks from $22.00 to $30.00 and gave the stock a "buy" rating in a research note on Wednesday, April 29th. Zacks Research upgraded shares of A10 Networks from a "hold" rating to a "strong-buy" rating in a report on Friday, May 1st. Finally, Wall Street Zen raised shares of A10 Networks from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $23.86.

A10 Networks Stock Performance

NYSE:ATEN opened at $28.09 on Tuesday. The stock has a market cap of $2.02 billion, a P/E ratio of 45.30 and a beta of 1.17. The firm's fifty day simple moving average is $24.73 and its 200 day simple moving average is $20.44. A10 Networks, Inc. has a twelve month low of $16.52 and a twelve month high of $28.66. The company has a quick ratio of 3.56, a current ratio of 3.71 and a debt-to-equity ratio of 0.99.

A10 Networks (NYSE:ATEN - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The communications equipment provider reported $0.24 EPS for the quarter, topping 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 $72.62 million. During the same period in the prior year, the business earned $0.20 EPS. The company's revenue for the quarter was up 13.4% on a year-over-year basis. A10 Networks has set its FY 2026 guidance at 0.640-0.650 EPS. As a group, research analysts predict that A10 Networks, Inc. will post 0.83 EPS for the current year.

A10 Networks Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Friday, May 15th will be issued a $0.06 dividend. The ex-dividend date is Friday, May 15th. This represents a $0.24 annualized dividend and a yield of 0.9%. A10 Networks's dividend payout ratio (DPR) is 38.71%.

Insider Buying and Selling

In other A10 Networks news, Director Eric Singer sold 24,698 shares of A10 Networks stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $27.21, for a total transaction of $672,032.58. Following the sale, the director directly owned 68,806 shares of the company's stock, valued at approximately $1,872,211.26. The trade was a 26.41% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 1.21% of the stock is owned by company insiders.

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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