Extreme Networks, Inc. (NASDAQ:EXTR) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Extreme Networks, with seven buy ratings and two holds. The average 12-month price target is $32.25, above the reported share price of $22.31.
• Extreme Networks exceeded quarterly expectations, reporting adjusted EPS of $0.32 versus a $0.29 consensus and revenue of $338.55 million versus $332.49 million expected. Revenue increased 10.3% year over year.
• Institutional investors own 91.05% of the company, while insiders own 3.60%; however, the CFO and CEO recently sold shares through pre-arranged Rule 10b5-1 trading plans.

Shares of Extreme Networks, Inc. (NASDAQ:EXTR - Get Free Report) have received a consensus rating of "Moderate Buy" from the nine analysts that are covering the stock, MarketBeat reports. Two equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $32.25.

Several equities research analysts recently commented on the stock. Bank of America boosted their price target on shares of Extreme Networks from $28.00 to $33.00 and gave the stock a "buy" rating in a report on Monday, June 8th. Craig Hallum reissued a "buy" rating and set a $31.00 target price on shares of Extreme Networks in a research note on Thursday, August 6th. Needham & Company LLC reduced their price target on shares of Extreme Networks from $38.00 to $35.00 and set a "buy" rating for the company in a research report on Wednesday, August 5th. B. Riley Financial raised their price target on shares of Extreme Networks from $28.00 to $34.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Finally, Oppenheimer reiterated an "outperform" rating on shares of Extreme Networks in a report on Thursday, August 6th.

Extreme Networks Price Performance

Shares of Extreme Networks stock opened at $22.31 on Friday. The firm has a market cap of $2.91 billion, a PE ratio of 71.97, a P/E/G ratio of 1.47 and a beta of 1.76. Extreme Networks has a twelve month low of $13.48 and a twelve month high of $33.73. The company has a quick ratio of 0.81, a current ratio of 0.93 and a debt-to-equity ratio of 1.63. The business has a 50-day moving average price of $25.42 and a 200 day moving average price of $23.55.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The technology company reported $0.32 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.29 by $0.03. The company had revenue of $338.55 million for the quarter, compared to the consensus estimate of $332.49 million. Extreme Networks had a return on equity of 88.88% and a net margin of 3.28%.Extreme Networks's revenue for the quarter was up 10.3% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.25 earnings per share. Extreme Networks has set its FY 2027 guidance at 1.280-1.330 EPS and its Q1 2027 guidance at 0.270-0.290 EPS. Sell-side analysts predict that Extreme Networks will post 0.75 earnings per share for the current fiscal year.

Insider Activity at Extreme Networks

In other Extreme Networks news, CFO Kevin R. Rhodes sold 21,825 shares of the firm's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $22.30, for a total value of $486,697.50. Following the transaction, the chief financial officer owned 196,803 shares in the company, valued at approximately $4,388,706.90. This trade represents a 9.98% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Edward Meyercord sold 50,000 shares of Extreme Networks stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $29.79, for a total transaction of $1,489,500.00. Following the sale, the chief executive officer directly owned 1,596,475 shares in the company, valued at approximately $47,558,990.25. This trade represents a 3.04% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 3.60% of the company's stock.

Institutional Investors Weigh In On Extreme Networks

A number of hedge funds have recently modified their holdings of EXTR. Integrated Wealth Concepts LLC acquired a new position in Extreme Networks during the second quarter worth about $25,000. Public Employees Retirement System of Ohio acquired a new stake in Extreme Networks in the 2nd quarter valued at about $28,000. Nykredit A S acquired a new stake in Extreme Networks in the 2nd quarter valued at about $48,000. Rockefeller Capital Management L.P. lifted its stake in Extreme Networks by 313.7% in the 4th quarter. Rockefeller Capital Management L.P. now owns 1,957 shares of the technology company's stock worth $33,000 after purchasing an additional 1,484 shares in the last quarter. Finally, Allworth Financial LP purchased a new position in Extreme Networks in the 2nd quarter worth approximately $105,000. 91.05% of the stock is currently owned by institutional investors and hedge funds.

Extreme Networks Company Profile

Extreme Networks, Inc NASDAQ: EXTR provides cloud-driven networking solutions for enterprises and organizations. Its portfolio includes wired and wireless network infrastructure, Ethernet switches, wireless access points, routers, network management software, analytics, and security tools designed to help customers build, monitor, and operate modern networks.

The company's cloud networking offerings include ExtremeCloud IQ, a platform for managing and analyzing network environments across distributed locations.

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