A10 Networks (NYSE:ATEN) Shares Up 6.9% - What's Next?

Key Points

• A10 Networks shares rose 6.9% to $27.58, though trading volume was 68% below the daily average. The company has a roughly $2.0 billion market capitalization and trades at a price-to-earnings ratio of 45.94.
• Analysts maintain a generally cautious outlook, with two Buy ratings and five Holds producing a consensus rating of Hold and an average price target of $30.88.
• A10 Networks exceeded quarterly expectations, reporting $0.25 in EPS versus $0.24 expected and $80.14 million in revenue versus $77.28 million forecast. Revenue increased 15.5% year over year, and the company pays a quarterly dividend equivalent to a 0.9% annual yield.

A10 Networks, Inc. (NYSE:ATEN - Get Free Report)'s stock price shot up 6.9% during mid-day trading on Wednesday. The stock traded as high as $27.41 and last traded at $27.58. 358,666 shares were traded during trading, a decline of 68% from the average daily volume of 1,106,053 shares. The stock had previously closed at $25.81.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on ATEN shares. Mizuho increased their target price on shares of A10 Networks from $30.00 to $34.00 and gave the company a "neutral" rating in a research note on Wednesday, July 15th. Deutsche Bank Aktiengesellschaft assumed coverage on A10 Networks in a research note on Monday, August 31st. They set a "hold" rating and a $28.00 price target on the stock. Piper Sandler set a $45.00 price objective on A10 Networks in a research report on Tuesday, June 16th. BTIG Research reissued a "buy" rating and set a $37.00 price objective on shares of A10 Networks in a report on Thursday, August 6th. Finally, Zacks Research cut A10 Networks from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 29th. Two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $30.88.

A10 Networks Stock Performance

The firm's 50-day moving average price is $27.28 and its two-hundred day moving average price is $28.57. The firm has a market capitalization of $2.00 billion, a price-to-earnings ratio of 45.94 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 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.24 by $0.01. The firm had revenue of $80.14 million during 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%. The company's quarterly revenue was up 15.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.21 earnings per share. A10 Networks has set its FY 2026 guidance at 0.650-0.661 EPS. As a group, equities research analysts anticipate that A10 Networks, Inc. will post 0.81 EPS for the current year.

A10 Networks Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Monday, August 17th were issued a $0.06 dividend. The ex-dividend date of this dividend was Monday, August 17th. This represents a $0.24 dividend on an annualized basis and a dividend yield of 0.9%. A10 Networks's dividend payout ratio is presently 40.00%.

Insider Activity at A10 Networks

In related news, Director Dana Wolf sold 2,652 shares of the business's stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $25.65, for a total value of $68,023.80. Following the sale, the director 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 through this hyperlink. 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 on Tuesday, August 11th. The shares were sold at an average price of $27.86, for a total value of $392,435.96. Following the completion of the sale, the general counsel owned 50,586 shares in the company, valued at $1,409,325.96. This trade represents a 21.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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

Several large investors have recently made changes to their positions in ATEN. BlackRock Inc. bought a new position in A10 Networks during the 2nd quarter valued at about $506,919,000. Walleye Capital LLC acquired a new stake in shares of A10 Networks during the first quarter worth approximately $115,600,000. Boston Trust Walden Corp raised its stake in shares of 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 valued at $90,292,000 after acquiring an additional 243,547 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its stake in shares of A10 Networks by 36.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,497,144 shares of the communications equipment provider's stock valued at $34,614,000 after acquiring an additional 401,857 shares during the last quarter. Finally, Punch & Associates Investment Management Inc. boosted its holdings in shares of A10 Networks by 1.7% in the 1st quarter. Punch & Associates Investment Management Inc. now owns 1,459,910 shares of the communications equipment provider's stock worth $33,753,000 after acquiring an additional 24,284 shares in the last quarter. 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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