Extreme Networks (NASDAQ:EXTR) Trading 8.9% Higher – Should You Buy?

Extreme Networks, Inc. (NASDAQ:EXTR)’s share price rose 8.9% on Thursday . The stock traded as high as $24.51 and last traded at $24.7880. Approximately 1,825,178 shares traded hands during mid-day trading, a decline of 11% from the average daily volume of 2,056,311 shares. The stock had previously closed at $22.77.

Analyst Ratings Changes

Several equities research analysts recently commented on EXTR shares. Wall Street Zen upgraded shares of Extreme Networks from a “buy” rating to a “strong-buy” rating in a research report on Sunday, May 3rd. Rosenblatt Securities reissued a “buy” rating and issued a $25.00 price target on shares of Extreme Networks in a research report on Thursday, January 29th. B. Riley Financial reaffirmed a “buy” rating on shares of Extreme Networks in a research report on Thursday, April 30th. Weiss Ratings raised shares of Extreme Networks from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, May 1st. Finally, Lake Street Capital reiterated a “buy” rating and set a $25.00 price objective on shares of Extreme Networks in a report on Thursday, April 30th. Six equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Extreme Networks currently has an average rating of “Moderate Buy” and a consensus price target of $25.50.

Extreme Networks Price Performance

The company has a debt-to-equity ratio of 1.89, a current ratio of 0.91 and a quick ratio of 0.78. The stock has a market capitalization of $3.24 billion, a P/E ratio of 206.22, a PEG ratio of 2.15 and a beta of 1.77. The stock’s fifty day moving average is $17.17 and its 200-day moving average is $16.68.

Extreme Networks (NASDAQ:EXTR) last released its quarterly earnings results on Wednesday, April 29th. The technology company reported $0.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.24 by $0.02. Extreme Networks had a return on equity of 81.88% and a net margin of 1.30%.The company had revenue of $316.87 million during the quarter, compared to the consensus estimate of $311.48 million. During the same quarter in the prior year, the company posted $0.21 EPS. The firm’s revenue was up 11.4% on a year-over-year basis. Extreme Networks has set its Q4 2026 guidance at 0.280-0.300 EPS. On average, equities analysts anticipate that Extreme Networks, Inc. will post 0.53 earnings per share for the current year.

Insider Activity at Extreme Networks

In other Extreme Networks news, Director Raj Khanna sold 10,000 shares of the company’s stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $23.20, for a total transaction of $232,000.00. Following the completion of the sale, the director directly owned 210,062 shares in the company, valued at $4,873,438.40. This represents a 4.54% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Edward Meyercord sold 78,791 shares of the firm’s stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $23.06, for a total value of $1,816,920.46. Following the completion of the sale, the chief executive officer directly owned 1,818,479 shares in the company, valued at approximately $41,934,125.74. This represents a 4.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 270,000 shares of company stock worth $5,773,273. 3.60% of the stock is owned by insiders.

Institutional Investors Weigh In On Extreme Networks

Hedge funds and other institutional investors have recently modified their holdings of the stock. Arrowstreet Capital Limited Partnership boosted its holdings in Extreme Networks by 7.6% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,247,680 shares of the technology company’s stock valued at $48,975,000 after purchasing an additional 230,617 shares during the period. Sei Investments Co. raised its position in shares of Extreme Networks by 50.8% during the first quarter. Sei Investments Co. now owns 360,866 shares of the technology company’s stock valued at $5,442,000 after buying an additional 121,535 shares during the last quarter. Lido Advisors LLC lifted its stake in shares of Extreme Networks by 21.9% in the first quarter. Lido Advisors LLC now owns 21,983 shares of the technology company’s stock valued at $332,000 after buying an additional 3,945 shares during the period. State of Wyoming lifted its stake in shares of Extreme Networks by 41.2% in the first quarter. State of Wyoming now owns 29,942 shares of the technology company’s stock valued at $452,000 after buying an additional 8,731 shares during the period. Finally, Southernsun Asset Management LLC grew its position in Extreme Networks by 16.6% during the first quarter. Southernsun Asset Management LLC now owns 2,297,933 shares of the technology company’s stock worth $34,653,000 after buying an additional 327,047 shares in the last quarter. Institutional investors and hedge funds own 91.05% of the company’s stock.

Extreme Networks Company Profile

Extreme Networks, Inc (NASDAQ: EXTR) is a global provider of end-to-end networking solutions designed to support enterprise, data center, and service provider environments. The company’s product portfolio encompasses high-performance wired and wireless access switches, routers, network security appliances, and software-defined networking (SDN) tools. Driven by a cloud-native management architecture, Extreme’s Intelligent Edge Platform integrates network analytics, automation and orchestration capabilities to help organizations optimize performance, reduce operational complexity and strengthen security.

Since its founding in the mid-1990s and subsequent public listing in 1999, Extreme Networks has expanded its technology footprint through targeted acquisitions.