A10 Networks (NYSE:ATEN) Stock Jumps 6.9% – Here’s Why

A10 Networks, Inc. (NYSE:ATEN)’s stock price rose 6.9% during trading on Wednesday. The stock traded as high as $27.41 and last traded at $27.58. 358,666 shares traded hands during trading, a decline of 68% from the average session volume of 1,106,053 shares. The stock had previously closed at $25.81.

Analysts Set New Price Targets

ATEN has been the subject of a number of research analyst reports. Weiss Ratings cut A10 Networks from a “hold (c+)” rating to a “hold (c)” rating in a report on Thursday, September 17th. Deutsche Bank Aktiengesellschaft began coverage on shares of A10 Networks in a research report on Monday, August 31st. They issued a “hold” rating and a $28.00 price target for the company. BTIG Research reaffirmed a “buy” rating and set a $37.00 price target on shares of A10 Networks in a research report on Thursday, August 6th. Mizuho upped their price objective on shares of A10 Networks from $30.00 to $34.00 and gave the company a “neutral” rating in a report on Wednesday, July 15th. Finally, BWS Financial reaffirmed a “buy” rating and issued a $45.00 price target on shares of A10 Networks in a research report on Friday, August 14th. Two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, A10 Networks presently has an average rating of “Hold” and an average price target of $30.88.

A10 Networks Stock Up 1.5%

The firm has a market cap of $2.00 billion, a PE ratio of 45.85 and a beta of 1.13. The stock has a 50-day simple moving average of $26.97 and a two-hundred day simple moving average of $28.66.

A10 Networks (NYSE:ATEN) last announced its quarterly earnings data on Wednesday, August 5th. The communications equipment provider reported $0.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.24 by $0.01. A10 Networks had a return on equity of 23.63% and a net margin of 13.85%.The firm had revenue of $80.14 million for the quarter, compared to analysts’ expectations of $77.28 million. During the same period last year, the firm earned $0.21 earnings per share. The company’s revenue for the quarter was up 15.5% compared to the same quarter last year. A10 Networks has set its FY 2026 guidance at 0.650-0.661 EPS. Research analysts expect that A10 Networks, Inc. will post 0.81 earnings per share for the current year.

A10 Networks Announces Dividend

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

Insider Activity

In other A10 Networks news, Director Dana Wolf sold 2,652 shares of A10 Networks stock in a transaction that occurred 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 transaction, 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through 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 firm’s stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $27.86, for a total transaction of $392,435.96. Following the transaction, the general counsel directly owned 50,586 shares of the company’s stock, valued at $1,409,325.96. The trade was a 21.78% decrease in their ownership of the stock. 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. Insiders own 1.21% of the company’s stock.

Institutional Investors Weigh In On A10 Networks

Several large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new position in shares of A10 Networks in the 2nd quarter valued at about $506,919,000. Hsbc Holdings PLC boosted its holdings in A10 Networks by 84.3% in the fourth quarter. Hsbc Holdings PLC now owns 153,816 shares of the communications equipment provider’s stock valued at $2,724,000 after acquiring an additional 70,357 shares during the last quarter. Rice Hall James & Associates LLC acquired a new stake in shares of A10 Networks during the 2nd quarter worth approximately $9,158,000. Bank of America Corp DE bought a new position in shares of A10 Networks in the 2nd quarter worth $17,237,000. Finally, Punch & Associates Investment Management Inc. purchased a new stake in shares of A10 Networks during the second quarter valued at approximately $44,412,000. 98.61% of the stock is owned by hedge funds and other institutional investors.

About A10 Networks

A10 Networks, Inc is a technology company that provides networking and cybersecurity solutions for enterprises, service providers and public-sector organizations. Its products are designed to help customers improve application availability, manage network traffic and protect digital services from cyber threats.

The company’s portfolio includes application delivery controllers, carrier-grade network address translation solutions, distributed denial-of-service protection, secure application access and SSL inspection technologies.