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 $7.5 million.
  • ATEN has traded 191,807 shares today.
  • ATEN is trading at 6.65 times the normal volume for the stock at this time of day.
  • ATEN is trading at a new high 6.35% 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 solutions in the United States, Japan, and internationally. Its solutions are built on advanced core operating system platform. Currently there are 8 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 508,900 shares per day over the past 30 days. A10 has a market cap of $474.4 million and is part of the technology sector and telecommunications industry. Shares are up 77.1% year-to-date as of the close of trading on Friday.

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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 disappointing return on equity.

Highlights from the ratings report include:

  • 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 79.12%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -17.65% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 209.28% to $4.16 million when compared to the same quarter last year. In addition, A10 NETWORKS INC has also vastly surpassed the industry average cash flow growth rate of -10.51%.
  • ATEN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, ATEN has a quick ratio of 1.93, which demonstrates the ability of the company to cover short-term liquidity needs.
  • This stock has increased by 81.81% 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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