It is Poised to be a Bull Market for A10 Networks Inc. (ATEN)

A10 Networks Inc. (NYSE: ATEN) stock jumped 2.36% on Friday to $15.64 against a previous-day closing price of $15.28. With 1.07 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.83 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $15.95 whereas the lowest price it dropped to was $15.27. The 52-week range on ATEN shows that it touched its highest point at $19.05 and its lowest point at $12.27 during that stretch. It currently has a 1-year price target of $20.67. With its current market cap of 1.18 billion, ATEN has annualized dividend of $0.20 while the current yield stands at 1.28%. Beta for the stock currently stands at 0.93.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ATEN was up-trending over the past week, with a rise of 5.75%, but this was up by 14.66% over a month. Three-month performance surged to 6.54% while six-month performance rose 5.04%. The stock gained 20.22% in the past year, while it has lost -5.67% so far this year. A look at the trailing 12-month EPS for ATEN yields 1.23 with Next year EPS estimates of 0.81. For the next quarter, that number is 0.16. This implies an EPS growth rate of 432.50% for this year and 23.74% for next year. EPS is expected to grow by 20.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 40.50%.

Float and Shares Shorts:

At present, 76.80 million ATEN shares are outstanding with a float of 63.49 million shares on hand for trading. On Jul 14, 2022, short shares totaled 4.63 million, which was 6.11% higher than short shares on Jun 14, 2022. In addition to Mr. Dhrupad Trivedi as the firm’s Pres, CEO & Board Chair, Mr. Brian Becker serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 86.40% of ATEN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 47.92% of ATEN, in contrast to 30.04% held by mutual funds. Shares owned by individuals account for 24.33%. As the largest shareholder in ATEN with 6.92% of the stake, The Vanguard Group, Inc. holds 5,249,997 shares worth 5,249,997. A second-largest stockholder of ATEN, BlackRock Fund Advisors, holds 3,837,633 shares, controlling over 5.06% of the firm’s shares. Renaissance Technologies LLC is the third largest shareholder in ATEN, holding 2,855,060 shares or 3.77% stake. With a 5.47% stake in ATEN, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 4,144,661 shares are owned by the mutual fund manager. The First Trust NASDAQ Cybersecurity, which owns about 3.29% of ATEN stock, is the second-largest Mutual Fund holder. It holds 2,492,852 shares valued at 35.85 million. L&G ISE Cyber Security UCITS ETF holds 2.91% of the stake in ATEN, owning 2,205,194 shares worth 31.71 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ATEN since 3 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ATEN analysts setting a high price target of $22.00 and a low target of $20.00, the average target price over the next 12 months is $20.67. Based on these targets, ATEN could surge 40.66% to reach the target high and rise by 27.88% to reach the target low. Reaching the average price target will result in a growth of 32.16% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ATEN will report FY 2022 earnings on 02/09/2023. Analysts have provided yearly estimates in a range of $0.69 being high and $0.64 being low. For ATEN, this leads to a yearly average estimate of $0.67. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. A10 Networks Inc. reported $0.17 EPS against a consensus estimate of $0.17. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is $0.16 and the low estimate is $0.15. The average estimate for the next quarter is thus $0.15.

Summary of Insider Activity:

Insiders traded ATEN stock several times over the past three months with 6 Buys and 23 Sells. In these transactions, 107,192 shares were bought while 1,018,133 shares were sold. The number of buy transactions has increased to 25 while that of sell transactions has risen to 78 over the past year. The total number of shares bought during that period was 705,644 while 9,382,824 shares were sold.

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