A10 Networks (NYSE:ATEN) Share Price Crosses Below 200 Day Moving Average - Time to Sell?

Key Points

• A10 Networks shares fell below their 200-day moving average, trading as low as $24.21 versus the $29.12 average, and last changing hands at $24.53.
• Analyst sentiment is mixed but leans neutral: two analysts rate the stock Buy and five rate it Hold, resulting in a consensus Hold rating and a $30.38 price target.
• The company reported quarterly revenue of $80.14 million and EPS of $0.25, both slightly ahead of estimates, while maintaining a quarterly dividend of $0.06 per share, or a 1.0% annualized yield.

A10 Networks, Inc. (NYSE:ATEN - Get Free Report) passed below its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $29.12 and traded as low as $24.21. A10 Networks shares last traded at $24.53, with a volume of 624,617 shares traded.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on ATEN shares. Deutsche Bank Aktiengesellschaft started coverage on A10 Networks in a research report on Monday, August 31st. They set a "hold" rating and a $28.00 target price on the stock. BWS Financial reaffirmed a "buy" rating and set a $45.00 price objective on shares of A10 Networks in a research note on Friday, August 14th. Mizuho cut their price target on A10 Networks from $34.00 to $30.00 and set a "neutral" rating for the company in a research note on Thursday, October 15th. BTIG Research restated a "buy" rating and set a $37.00 price objective on shares of A10 Networks in a research report on Thursday, August 6th. Finally, Zacks Research downgraded shares of A10 Networks from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 29th. Two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $30.38.

A10 Networks Trading Down 2.1%

The firm has a 50-day moving average of $26.16 and a two-hundred day moving average of $29.12. The firm has a market capitalization of $1.78 billion, a PE ratio of 40.88 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 EPS for the quarter, beating the consensus estimate of $0.24 by $0.01. The firm had revenue of $80.14 million for the quarter, compared to analyst estimates of $77.28 million. A10 Networks had a net margin of 13.85% and a return on equity of 23.63%. A10 Networks's revenue for the quarter was up 15.5% compared to the same quarter last year. During the same quarter last year, the firm posted $0.21 earnings per share. A10 Networks has set its FY 2026 guidance at 0.650-0.661 EPS. Equities research analysts expect that A10 Networks, Inc. will post 0.81 earnings per share for the current fiscal year.

A10 Networks Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Monday, August 17th were paid a dividend of $0.06 per share. The ex-dividend date of this dividend was Monday, August 17th. This represents a $0.24 annualized dividend and a yield of 1.0%. A10 Networks's payout ratio is 40.00%.

Insider Activity

In other A10 Networks news, Director Dana Wolf sold 2,652 shares of the firm's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $25.65, for a total transaction of $68,023.80. Following the completion of the transaction, the director directly owned 57,409 shares of the company's stock, valued at $1,472,540.85. This trade represents a 4.42% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Robert Weber sold 14,086 shares of the company's stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $27.86, for a total transaction of $392,435.96. Following the completion of the sale, the general counsel owned 50,586 shares in the company, valued at approximately $1,409,325.96. This trade represents a 21.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.21% of the stock is owned by company insiders.

Hedge Funds Weigh In On A10 Networks

A number of hedge funds have recently added to or reduced their stakes in ATEN. Signaturefd LLC lifted its holdings in A10 Networks by 24.2% in the second quarter. Signaturefd LLC now owns 2,159 shares of the communications equipment provider's stock worth $81,000 after acquiring an additional 421 shares during the last quarter. The Manufacturers Life Insurance Company lifted its stake in A10 Networks by 1.6% in the second quarter. The Manufacturers Life Insurance Company now owns 29,959 shares of the communications equipment provider's stock valued at $1,119,000 after buying an additional 458 shares during the last quarter. PNC Financial Services Group Inc. increased its holdings in shares of A10 Networks by 14.1% in the 1st quarter. PNC Financial Services Group Inc. now owns 3,938 shares of the communications equipment provider's stock worth $91,000 after acquiring an additional 488 shares during the period. SBI Securities Co. Ltd. lifted its position in A10 Networks by 83.5% in the 2nd quarter. SBI Securities Co. Ltd. now owns 1,167 shares of the communications equipment provider's stock valued at $44,000 after purchasing an additional 531 shares during the last quarter. Finally, GAMMA Investing LLC grew its position in A10 Networks by 9.1% in the 2nd quarter. GAMMA Investing LLC now owns 7,211 shares of the communications equipment provider's stock worth $269,000 after purchasing an additional 603 shares during the last quarter. Institutional investors and hedge funds own 98.61% of the company's stock.

About A10 Networks

A10 Networks, Inc is a cybersecurity and networking company that provides solutions designed to improve the availability, performance, and security of applications and digital services. Its offerings help organizations manage application traffic, protect networks from cyberattacks, and support secure access across data centers, private clouds, public clouds, and hybrid environments.

The company's portfolio includes application delivery controllers, distributed denial-of-service (DDoS) protection, secure application services, carrier-grade networking solutions, and centralized management and analytics tools.

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