Extreme Networks, Inc. (NASDAQ:EXTR) Stock Has Consensus Price Target of $33.86

Key Points

• Analyst sentiment is positive: Ten brokerages give Extreme Networks a consensus “Moderate Buy” rating, with an average 12-month price target of $33.86. Seven rate it a buy and one a strong buy.
• Quarterly results topped expectations: Extreme Networks reported EPS of $0.33 versus estimates of $0.28, while revenue of $341.09 million beat forecasts and rose 10% year over year.
• A potential sale is under consideration: Reports name Cisco, Fortinet and NetApp as possible interested parties, but no offer or deal has been confirmed.

Shares of Extreme Networks, Inc. (NASDAQ:EXTR - Get Free Report) have been given an average rating of "Moderate Buy" by the ten brokerages that are covering the company, Marketbeat.com reports. Two equities research analysts have rated the stock with a hold recommendation, seven have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $33.86.

EXTR has been the subject of several recent research reports. B. Riley Financial boosted their price target on Extreme Networks from $28.00 to $34.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Zacks Research raised Extreme Networks from a "hold" rating to a "strong-buy" rating in a research report on Monday, November 2nd. Oppenheimer reiterated an "outperform" rating on shares of Extreme Networks in a research note on Thursday, August 6th. Needham & Company LLC reiterated a "buy" rating and issued a $35.00 target price on shares of Extreme Networks in a report on Wednesday, October 28th. Finally, Weiss Ratings upgraded shares of Extreme Networks from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, November 2nd.

Key Headlines Impacting Extreme Networks

Here are the key news stories impacting Extreme Networks this week:

• Positive Sentiment: Sale exploration and buyer interest: Extreme Networks is reportedly considering a sale, with Cisco, Fortinet and NetApp named as possible interested parties. A competitive process could support expectations of a takeover premium, but the reports do not confirm an offer or deal. Reuters report SDxCentral report
• Positive Sentiment: New customer deployment: Bayer 04 Leverkusen selected Extreme Networks for a Wi-Fi 7 deployment, offering a customer win that showcases demand for its networking products. Technology Magazine article
• Neutral Sentiment: Unusually high call-option activity: Investors bought 3,027 call options, versus an average of 361. This signals heightened bullish positioning but does not establish the direction of future trading. Benzinga article
• Neutral Sentiment: Sanctions case resolved: Extreme Networks reached a DOJ non-prosecution agreement related to alleged sanctions violations, and OFAC and DOJ have resolved the matter. The resolution may reduce uncertainty, though the headlines do not specify its terms. JDSupra article
• Neutral Sentiment: Shareholders approved directors and key proposals at the company’s annual meeting; no immediate financial or strategic impact is indicated. TipRanks article

Extreme Networks Price Performance

Shares of EXTR opened at $24.03 on Monday. The company has a 50 day moving average price of $22.46 and a 200-day moving average price of $22.16. Extreme Networks has a fifty-two week low of $13.48 and a fifty-two week high of $33.73. The stock has a market capitalization of $3.15 billion, a PE ratio of 61.62, a PEG ratio of 1.55 and a beta of 1.81. The company has a debt-to-equity ratio of 2.27, a quick ratio of 0.87 and a current ratio of 1.02.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The technology company reported $0.33 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.28 by $0.05. The firm had revenue of $341.09 million for the quarter, compared to the consensus estimate of $336.75 million. Extreme Networks had a net margin of 3.99% and a return on equity of 102.41%. The company's quarterly revenue was up 10.0% on a year-over-year basis. During the same period last year, the firm earned $0.22 earnings per share. Equities analysts predict that Extreme Networks will post 0.86 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Kevin Rhodes sold 21,825 shares of the business's stock in a transaction that occurred 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 transaction, the chief financial officer owned 196,803 shares in the company, valued at $4,388,706.90. The trade was a 9.98% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Edward Meyercord sold 50,000 shares of the business's stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $21.77, for a total transaction of $1,088,500.00. Following the transaction, the chief executive officer owned 1,710,097 shares of the company's stock, valued at approximately $37,228,811.69. This trade represents a 2.84% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.20% of the stock is owned by insiders.

Institutional Trading of Extreme Networks

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Integrated Wealth Concepts LLC purchased a new stake in shares of Extreme Networks during the second quarter valued at $25,000. CoreCap Advisors LLC increased its position in shares of Extreme Networks by 72.3% in the 3rd quarter. CoreCap Advisors LLC now owns 1,201 shares of the technology company's stock valued at $26,000 after acquiring an additional 504 shares during the period. Public Employees Retirement System of Ohio acquired a new position in shares of Extreme Networks in the 2nd quarter valued at $28,000. Rockefeller Capital Management L.P. raised 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 acquiring an additional 1,484 shares during the last quarter. Finally, Nykredit A S purchased a new position in Extreme Networks in the 2nd quarter worth $48,000. Hedge funds and other institutional investors own 91.05% of the company's stock.

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.

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