Eric Singer is the lead independent director of A10 Networks, Inc. (NYSE: ATEN) and they just sold 29% of their stock

Anyone interested in A10 Networks, Inc. (NYSE: ATEN) should probably know that Lead Independent Director Eric Singer recently sold $227,000 worth of company stock, at an average price of $15.20 each. This sale represented 29% of their stake, so that raises our eyebrows.

A10 Networks Insider Trading Over the Last Year

Notably, this recent sale by Senior Independent Director Eric Singer wasn’t the only time they sold A10 Networks stock this year. Previously, they made an even bigger sale of shares worth -$2.7 million at a price of $15.09 per share. This means that an insider was selling shares at a price slightly lower than the current price (US$15.42). We generally consider it negative if insiders sold, especially if they did below the current price, as this implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can’t be sure if it means insiders believe the stock is fully priced, so it’s only a weak sign. Note that this sale involved 71% of Eric Singer’s stake.

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

NYSE: ATEN Insider Trading Volume August 7, 2022

If you’re like me, then you not want to miss this free list of growing companies insiders are buying.

Insider ownership

I like to look at how many shares insiders own in a company, to help me get a sense of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the business for the long term. It appears that A10 Networks insiders own 1.8% of the company, worth around $21 million. This level of insider ownership is good, but just short of being particularly noteworthy. This certainly suggests a reasonable degree of alignment.

So what does this data suggest about A10 Networks insiders?

Insiders haven’t bought any A10 Networks shares in the past three months, but there have been some sales. And even if we look at last year, we haven’t seen any purchases. On the positive side, A10 Networks is making money and increasing profits. Insiders hold shares, but we remain quite cautious, given the history of sales. We are in no rush to buy! So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. Our analysis shows 2 warning signs for A10 networks (1 is potentially serious!) and we strongly recommend that you consult them before investing.

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.

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