A10 Networks, Inc. (NYSE: ATEN) Independent Lead Director Eric Singer Just Sold 71% of His Stake

Some A10 Networks, Inc. (NYSE: ATEN) Shareholders might be a little concerned that lead independent director Eric Singer recently sold US$2.7 million worth of stock at US$15.03 per share. This lowered their stake to 71%, presumably implying a strong desire to reallocate capital.

See our latest analysis for A10 Networks

The last 12 months of insider trading at A10 Networks

In fact, the recent sale of Eric Singer was the largest sale of A10 Networks shares by an insider in the past twelve months, according to our records. This means that an insider was selling shares at around the current price of US$14.38. We usually don’t like insider selling, but the lower the selling price, the more we’re concerned about it. Given that the sale took place roughly at current prices, this makes us a little cautious but is hardly a major concern.

Last year, A10 Networks insiders did not buy any shares of the company. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you want to know exactly who sold, how much and when, just click on the chart below!

NYSE: ATEN Insider Trading Volume, May 12, 2022

I would like A10 Networks better if I see big insider buys. In the meantime, watch this free list of growing companies with significant and recent insider buying.

Insider ownership

Many investors like to check how much a company is owned by insiders. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the business for the long term. Insiders of A10 Networks hold approximately $13 million worth of stock. This equates to 1.2% of the business. We have certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.

So what does this data suggest about A10 Networks insiders?

Insiders sold A10 Networks shares recently, but did not buy any. And there have been no purchases to comfort us in the past year. But since A10 Networks is profitable and growing, that doesn’t worry us too much. Insiders hold shares, but we remain quite cautious, given the history of sales. We would exercise caution before purchasing! While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. When we did our research, we found 2 warning signs for A10 networks (1 cannot be ignored!) which we believe deserve your full attention.

But note: A10 Networks may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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