A10 Networks (NYSE:ATEN) Shares Up 11.2% Following Earnings Beat

A10 Networks, Inc. (NYSE:ATEN) shares traded up 11.2% on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $26.00 and last traded at $25.1380. Approximately 204,318 shares changed hands during trading, a decline of 81% from the average session volume of 1,093,914 shares. The stock had previously closed at $22.60.

The communications equipment provider reported $0.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.27 by $0.04. A10 Networks had a net margin of 13.85% and a return on equity of 23.63%. The company had revenue of $91.55 million during the quarter, compared to analysts’ expectations of $83.88 million. During the same quarter in the prior year, the company posted $0.23 EPS. The business’s revenue was up 22.6% on a year-over-year basis.

A10 Networks Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Monday, November 16th will be given a dividend of $0.06 per share. This represents a $0.24 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Monday, November 16th. A10 Networks’s payout ratio is 40.00%.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. BTIG Research reissued a “buy” rating and issued a $37.00 price target on shares of A10 Networks in a research report on Thursday, August 6th. Deutsche Bank Aktiengesellschaft started coverage on A10 Networks in a report on Monday, August 31st. They set a “hold” rating and a $28.00 price objective on the stock. BWS Financial reaffirmed a “buy” rating and set a $45.00 price objective on shares of A10 Networks in a report on Friday, August 14th. Weiss Ratings lowered A10 Networks from a “hold (c+)” rating to a “hold (c)” rating in a research note on Thursday, September 17th. Finally, Mizuho dropped their target price on A10 Networks from $34.00 to $30.00 and set a “neutral” rating for the company in a report on Thursday, October 15th. Two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $30.38.

Insiders Place Their Bets

In other A10 Networks 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 transaction, the director owned 57,409 shares of the company’s stock, valued at approximately $1,472,540.85. The trade was a 4.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $27.86, for a total value of $392,435.96. Following the sale, the general counsel owned 50,586 shares in the company, valued at $1,409,325.96. The trade was a 21.78% decrease in their position. 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 currently owned by insiders.

Institutional Investors Weigh In On A10 Networks

A number of hedge funds have recently added to or reduced their stakes in ATEN. Transamerica Financial Advisors LLC acquired a new stake in A10 Networks in the 2nd quarter valued at about $26,000. Northwestern Mutual Wealth Management Co. bought a new position in shares of A10 Networks in the second quarter worth about $27,000. SBI Securities Co. Ltd. lifted its position in shares of A10 Networks by 83.5% during the second quarter. SBI Securities Co. Ltd. now owns 1,167 shares of the communications equipment provider’s stock worth $44,000 after purchasing an additional 531 shares in the last quarter. State of Wyoming acquired a new position in shares of A10 Networks during the second quarter worth approximately $57,000. Finally, Sterling Capital Management LLC lifted its position in shares of A10 Networks by 846.3% during the third quarter. Sterling Capital Management LLC now owns 2,413 shares of the communications equipment provider’s stock worth $65,000 after purchasing an additional 2,158 shares in the last quarter. Institutional investors own 98.61% of the company’s stock.

A10 Networks Stock Up 9.3%

The stock’s 50-day moving average price is $25.96 and its 200-day moving average price is $26.55. The company has a market capitalization of $1.79 billion, a price-to-earnings ratio of 41.38 and a beta of 0.99.

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.