A10 Networks’ Growing Client Base Drives Share Gains

ATEN’s application networking solutions provide high availability, acceleration, and security for data center applications and networks. The company’s offerings include cloud storage, enterprise solutions, security, and protection for data centers, application delivery, load balancing, and distributed denial of service attacks. ATEN has a market capitalization of over $1.2 billion.

On the financial front, ATEN’s fiscal third quarter that ended in September produced revenue gains of 4.4% on a year-over-year basis, to $66.7 billion. Its quarterly per-share earnings grew 31.3%, to $0.21. ATEN has a solid financial position ($182.1 million in cash and securities and no debt) and is growing its enterprise clients, which benefits its bottom line. Also, service providers in North America have been spending more, which has helped ATEN grow.

It’s no wonder ATEN shares are up 33% this year – and they could rise more. MAPsignals data shows how a rare bullish signal reflects Big Money investors are betting heavily on the forward picture of the stock.

A10 Networks Rises on Big Money Buying

Institutional volumes reveal plenty. In the last year, ATEN has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in ATEN shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with A10 Networks.

A10 Networks Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, ATEN has strong sales and earnings growth:

• 3-year sales growth rate (+4.3%)
• 3-year earnings growth rate (+124.9%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +10.6%.

Now it makes sense why the stock has been powering to new heights. ATEN has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

A10 Networks has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year, with more potentially on the horizon. The blue bars below show when ATEN was a top pick…sending shares higher:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

A10 Networks Price Prediction

The ATEN rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in ATEN at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.