A10 Networks (NYSE:ATEN) Shares Up 4.7% - Time to Buy?

Key Points

• A10 Networks shares rose 4.7% to about $26.80, although trading volume was roughly 92% below the average daily level.
• Analysts remain cautious, with an average rating of “Hold” from seven analysts and an average price target of $30.88; individual targets range from $34 to $45.
• The company exceeded quarterly earnings and revenue expectations, reporting $0.25 EPS and $80.14 million in revenue, while revenue increased 15.5% year over year. A10 also pays a $0.06 quarterly dividend, yielding about 0.9%.

A10 Networks, Inc. (NYSE:ATEN - Get Free Report)'s stock price shot up 4.7% during trading on Tuesday . The company traded as high as $26.39 and last traded at $26.8010. 84,222 shares traded hands during trading, a decline of 92% from the average daily volume of 1,092,197 shares. The stock had previously closed at $25.61.

Analyst Upgrades and Downgrades

ATEN has been the subject of a number of research reports. Mizuho lifted their price objective on A10 Networks from $30.00 to $34.00 and gave the company a "neutral" rating in a research note on Wednesday, July 15th. Piper Sandler set a $45.00 target price on A10 Networks in a research note on Tuesday, June 16th. Weiss Ratings upgraded A10 Networks from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday, June 24th. Wall Street Zen downgraded A10 Networks from a "buy" rating to a "hold" rating in a research report on Saturday, June 20th. Finally, BTIG Research reiterated a "buy" rating and set a $37.00 price target on shares of A10 Networks in a research note on Thursday, August 6th. Two analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $30.88.

A10 Networks Price Performance

The business's 50 day moving average is $29.57 and its 200-day moving average is $28.10. The company has a market cap of $1.92 billion, a PE ratio of 44.13 and a beta of 1.13.

A10 Networks (NYSE:ATEN - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The communications equipment provider reported $0.25 EPS 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 the consensus estimate of $77.28 million. A10 Networks had a net margin of 13.85% and a return on equity of 23.63%. The company's quarterly revenue was up 15.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.21 EPS. A10 Networks has set its FY 2026 guidance at 0.650-0.661 EPS. As a group, sell-side analysts predict that A10 Networks, Inc. will post 0.81 EPS for the current fiscal year.

A10 Networks Announces Dividend

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

Insiders Place Their Bets

In other A10 Networks news, Director Dana Wolf sold 2,652 shares of A10 Networks stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $25.65, for a total transaction of $68,023.80. Following the completion of the sale, the director directly owned 57,409 shares of the company's stock, valued at $1,472,540.85. The trade was a 4.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 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 stock was sold at an average price of $27.86, for a total value of $392,435.96. Following the transaction, 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.21% of the stock is owned by company insiders.

Institutional Investors Weigh In On A10 Networks

Institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new stake in shares of A10 Networks in the second quarter valued at approximately $506,919,000. Walleye Capital LLC acquired a new position in A10 Networks during the first quarter worth $115,600,000. Boston Trust Walden Corp raised its position in A10 Networks by 11.2% in the second quarter. Boston Trust Walden Corp now owns 2,416,808 shares of the communications equipment provider's stock worth $90,292,000 after acquiring an additional 243,547 shares in the last quarter. Punch & Associates Investment Management Inc. purchased a new position in A10 Networks in the second quarter worth $44,412,000. Finally, 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 in the last quarter. Hedge funds and other institutional investors own 98.61% of the company's stock.

About A10 Networks

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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