Extreme Networks (NASDAQ:EXTR) Shares Gap Up Following Earnings Beat

Shares of Extreme Networks, Inc. (NASDAQ:EXTR) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $23.85, but opened at $25.74. Extreme Networks shares last traded at $23.56, with a volume of 248,518 shares traded.

The technology company reported $0.33 EPS for the quarter, beating analysts’ consensus estimates of $0.28 by $0.05. The company had revenue of $341.09 million during the quarter, compared to analyst estimates of $336.75 million. During the same period last year, the firm earned $0.22 EPS. The firm’s revenue for the quarter was up 10.0% compared to the same quarter last year.

Analysts Set New Price Targets

Several equities analysts have recently commented on EXTR shares. Rosenblatt Securities restated a “buy” rating and issued a $38.00 target price on shares of Extreme Networks in a research report on Thursday, October 22nd. Weiss Ratings upgraded shares of Extreme Networks from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, October 16th. Needham & Company LLC reduced their price target on shares of Extreme Networks from $38.00 to $35.00 and set a “buy” rating on the stock in a research report on Wednesday, August 5th. Oppenheimer reissued an “outperform” rating on shares of Extreme Networks in a research note on Thursday, August 6th. Finally, B. Riley Financial boosted their price objective on shares of Extreme Networks from $28.00 to $34.00 and gave the company a “buy” rating in a research report on Thursday, August 6th. Seven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $32.25.

Insider Activity at Extreme Networks

In other news, CEO Edward Meyercord sold 50,000 shares of the business’s stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $21.77, for a total value of $1,088,500.00. Following the transaction, the chief executive officer owned 1,710,097 shares in the company, valued at approximately $37,228,811.69. The trade was a 2.84% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rhodes sold 21,825 shares of the company’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $22.30, for a total transaction of $486,697.50. Following the completion of the sale, the chief financial officer directly owned 196,803 shares in the company, valued at approximately $4,388,706.90. This represents a 9.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 121,825 shares of company stock worth $3,064,698 over the last quarter. 3.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Extreme Networks

Hedge funds have recently bought and sold shares of the company. Verdence Capital Advisors LLC lifted its holdings in Extreme Networks by 2.3% in the third quarter. Verdence Capital Advisors LLC now owns 25,166 shares of the technology company’s stock valued at $540,000 after buying an additional 561 shares during the period. Simplicity Wealth LLC boosted its position in Extreme Networks by 113.6% during the third quarter. Simplicity Wealth LLC now owns 48,045 shares of the technology company’s stock valued at $1,031,000 after acquiring an additional 25,550 shares during the last quarter. Sterling Capital Management LLC grew its holdings in Extreme Networks by 840.1% during the 3rd quarter. Sterling Capital Management LLC now owns 4,287 shares of the technology company’s stock worth $92,000 after acquiring an additional 3,831 shares during the period. Cantor Fitzgerald Investment Advisors L.P. acquired a new stake in Extreme Networks during the 3rd quarter worth about $1,373,000. Finally, Nisa Investment Advisors LLC raised its position in shares of Extreme Networks by 103.5% in the 3rd quarter. Nisa Investment Advisors LLC now owns 8,617 shares of the technology company’s stock worth $185,000 after acquiring an additional 4,383 shares in the last quarter. Institutional investors own 91.05% of the company’s stock.

Extreme Networks Trading Down 2.3%

The company has a 50-day moving average price of $22.45 and a two-hundred day moving average price of $21.87. The stock has a market capitalization of $3.08 billion, a P/E ratio of 75.24 and a beta of 1.76.

About Extreme Networks

Extreme Networks, Inc develops networking solutions that help organizations connect, manage and secure users, devices and applications across campus, data center and distributed environments. Its portfolio includes wired and wireless network infrastructure, Ethernet switches, access points, software-defined wide-area networking (SD-WAN), network access control and cloud-based network management.

The company’s ExtremeCloud platform supports centralized monitoring, configuration, analytics and automation for network operations.