A10 Networks (NYSE: ATEN) announced its earnings results for the third quarter of 2023, exceeding analysts’ expectations with earnings per share (EPS) of $0.23. This figure surpassed the consensus estimate of $0.21 by $0.02. The communications equipment provider reported revenue of $74.68 million, significantly higher than the estimated $70.70 million.
The company’s performance reflects a year-over-year revenue growth of 11.9%, with the previous year’s EPS recorded at $0.21. A10 Networks also achieved a return on equity of 25.46% and a net margin of 18.45%.
Stock Performance and Market Activity
Following the earnings announcement, shares of A10 Networks rose by 1.6%, trading at $17.81 during mid-day on the following Wednesday. The trading volume reached 404,962 shares, compared to the average of 865,303. The company’s market capitalization stands at $1.28 billion, with a price-to-earnings ratio of 26.19 and a beta of 1.27.
A10 Networks has demonstrated solid financial stability, reflected in its current ratio of 4.23 and a quick ratio of 4.04. The firm also maintains a debt-to-equity ratio of 1.07, indicating a balanced approach to leveraging. Over the past year, the stock has fluctuated between a low of $13.81 and a high of $21.90.
Dividend Announcement and Insider Activity
In addition to its earnings report, A10 Networks declared a quarterly dividend of $0.06 per share, scheduled for payment on December 1, 2023. Shareholders on record as of November 17, 2023 will receive this dividend, which translates to an annualized yield of 1.3%. The company’s dividend payout ratio currently stands at 35.29%.
In other corporate developments, Chief Financial Officer Brian Becker recently sold 6,400 shares of the company’s stock on August 13, 2023, at an average price of $18.03, totaling $115,392. Post-transaction, Becker holds 77,599 shares valued at approximately $1,399,109.97. This sale reflects a 7.62% decrease in his holdings.
Institutional Investment Trends
Recent changes in institutional investor positions further illustrate market activity surrounding A10 Networks. The Manufacturers Life Insurance Company increased its stake by 2.1% during the second quarter, acquiring an additional 737 shares for a total of 36,438 shares valued at $705,000.
Similarly, Quantinno Capital Management LP raised its holdings by 22.9%, while Tower Research Capital LLC TRC boosted its position by an impressive 120.7%. Other institutional investors, including Nebula Research & Development LLC and Vident Advisory LLC, also adjusted their positions, contributing to a total of 98.61% institutional ownership of the company’s stock.
A10 Networks specializes in providing networking solutions worldwide, with offerings that include advanced application delivery controllers, secure sockets layer (SSL) insights, and convergent firewall services. The firm continues to strengthen its position in the communications equipment sector, reflecting robust growth and a commitment to innovation.
