A10 Networks Secures the Big Money

And the cybersecurity company could rise even more due to strong sales and earnings as well as a current dividend of nearly 1.3%. But another likely reason is Big Money lifting the stock.

Big Money Attracted to A10 Networks

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And A10 Networks has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals ATEN has made the last year.

The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:

Source: www.mapsignals.com

In the last year, the stock attracted 16 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

• 1-month outperformance vs. Technology Select Sector SPDR ETF (+9.0% vs. XLK)

Outperformance is important for leading stocks.

A10 Networks Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, A10 Networks has been growing earnings well and sports a nice profit margin. Take a look:

• 3-year EPS growth rate (+237.9%)
• Profit margin (+37.9%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, ATEN has become a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

ATEN has a lot of qualities that are attracting Big Money. It’s made the Top 20 report five times since 2020, with its first appearance on 08/03/2021…and gaining 22.6% since. The blue bars below show when A10 Networks was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the technology sector according to the MAPsignals process. I wouldn’t be surprised if ATEN makes additional appearances in the years to come. Let’s tie this all together.

A10 Networks Price Prediction

The A10 Networks rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, and it pays a nearly 1.3% current dividend. 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 positions in ATEN at the time of publication.

Learn more about the MAPsignals process here.

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