SAN JOSE, CA—Thomas Karen S., Executive Vice President of Worldwide Sales and Marketing at A10 Networks, Inc. (NYSE:ATEN), recently sold 6,162 shares of the company's common stock. The shares were sold at an average price of $16.70 each, generating a total transaction value of $102,905. Following this transaction, Karen holds 23,799 shares directly.
The sale, detailed in a Form 4 filing with the Securities and Exchange Commission, took place on November 12, 2024. The transaction price ranged from $16.68 to $16.70 per share, according to the filing.
In other recent news, A10 Networks has reported a significant rise in its third-quarter revenue, marking a 15.5% increase year-over-year to $66.7 million. In addition, the non-GAAP net income for the quarter reached $15.9 million, or $0.21 per diluted share. The company also announced a quarterly cash dividend of $0.06 per share, indicating a strong financial health and a commitment to shareholder returns.
A10 Networks is focusing on diversification and expanding its security-led solutions, which have contributed to a 10% revenue increase year-to-date. The company expects to maintain strong profitability, with adjusted EBITDA margins projected between 26% to 28% for the full year.
Recent developments show that A10 Networks is looking at strategic mergers and acquisitions opportunities and potential share buybacks. The company is also prioritizing reinvestment in the business, with a 15% increase in R&D spending. According to the company, they anticipate a 10% to 12% increase in its security-led business and aim to sustain gross margins between 80% and 82% through product mix and productivity improvements.
InvestingPro Insights
Following Thomas Karen S.'s recent stock sale, it's worth examining A10 Networks' current financial position and market performance. According to InvestingPro data, A10 Networks boasts a market capitalization of $1.22 billion, with a price-to-earnings ratio of 24.67. This P/E ratio is relatively low compared to the company's near-term earnings growth potential, as highlighted by one of the InvestingPro Tips.
The company's financial health appears robust, with an InvestingPro Tip noting that A10 Networks holds more cash than debt on its balance sheet. This strong liquidity position is further supported by another tip indicating that the company's liquid assets exceed short-term obligations, suggesting a solid financial foundation.
A10 Networks has demonstrated impressive profitability, with a gross profit margin of 80.69% for the last twelve months as of Q3 2024. This aligns with an InvestingPro Tip highlighting the company's "impressive gross profit margins." Additionally, the company has been profitable over the last twelve months, with analysts predicting continued profitability for the current year.
Investors may also be interested to know that A10 Networks has raised its dividend for three consecutive years, currently offering a dividend yield of 1.45%. This, combined with the company's strong return over the last three months (29.47%) and its trading near its 52-week high (97.64% of the high), paints a picture of a company that may be attractive to both value and income-focused investors.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on A10 Networks, providing a deeper understanding of the company's financial health and market position.
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