Trade-Ideas LLC identified

A10 Networks

(

ATEN

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified A10 Networks as such a stock due to the following factors:

  • ATEN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
  • ATEN has traded 59,055 shares today.
  • ATEN is trading at 4.65 times the normal volume for the stock at this time of day.
  • ATEN is trading at a new high 4.37% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on ATEN:

A10 Networks, Inc. provides software based application networking and network security solutions in the United States, Japan, and internationally. Its solutions are built on advanced core operating system platform. Currently there are 6 analysts that rate A10 Networks a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for A10 Networks has been 340,900 shares per day over the past 30 days. A10 has a market cap of $484.2 million and is part of the technology sector and telecommunications industry. Shares are up 15.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates A10 Networks as a

sell

. The area that we feel has been the company's primary weakness has been its unimpressive growth in net income.

Highlights from the ratings report include:

  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Software industry average, but is greater than that of the S&P 500. The net income increased by 30.6% when compared to the same quarter one year prior, rising from -$13.73 million to -$9.54 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, A10 NETWORKS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for A10 NETWORKS INC is currently very high, coming in at 78.96%. Regardless of ATEN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ATEN's net profit margin of -17.72% significantly underperformed when compared to the industry average.
  • A10 NETWORKS INC has improved earnings per share by 31.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, A10 NETWORKS INC reported poor results of -$0.64 versus -$0.59 in the prior year. This year, the market expects an improvement in earnings (-$0.14 versus -$0.64).
  • This stock has increased by 33.14% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in ATEN do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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