Extreme Networks, Inc. (NASDAQ:EXTR) Stock Has Consensus Target Price of $32.25 According to Brokerages

Key Points

• Analyst sentiment is moderately bullish: Seven of nine analysts rate Extreme Networks a buy, versus one hold and one sell, with a consensus 12-month price target of $32.25 compared with the stock’s $22.46 opening price.
• Recent results exceeded expectations: Extreme Networks reported quarterly EPS of $0.32 versus the $0.29 consensus estimate and revenue of $338.55 million, up 10.3% year over year.
• Institutional ownership is substantial, while insiders have been selling: Institutional investors own 91.05% of the company, while insiders sold 121,825 shares worth approximately $3.06 million over the last 90 days.

Extreme Networks, Inc. (NASDAQ:EXTR - Get Free Report) has earned a consensus rating of "Moderate Buy" from the nine analysts that are covering the company, MarketBeat reports. One investment analyst has rated the stock with a sell recommendation, one has issued a hold recommendation and seven have issued a buy recommendation on the company. The average 1 year price target among brokerages that have issued a report on the stock in the last year is $32.25.

EXTR has been the topic of several research analyst reports. Rosenblatt Securities decreased their price objective on shares of Extreme Networks from $39.00 to $38.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. Wall Street Zen raised shares of Extreme Networks from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 8th. Craig Hallum reiterated a "buy" rating and set a $31.00 target price on shares of Extreme Networks in a research report on Thursday, August 6th. B. Riley Financial boosted their price target on shares of Extreme Networks from $28.00 to $34.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Finally, Weiss Ratings cut shares of Extreme Networks from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, October 2nd.

Insider Buying and Selling at Extreme Networks

In other news, CFO Kevin Rhodes sold 21,825 shares of Extreme Networks 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 of the company's stock, valued at approximately $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 accessible 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 Extreme Networks stock in a transaction 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 sale, the chief executive officer directly owned 1,710,097 shares of the company's stock, valued at $37,228,811.69. This represents a 2.84% decrease in their ownership of the stock. 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. In the last 90 days, insiders have sold 121,825 shares of company stock worth $3,064,698. Corporate insiders own 3.20% of the company's stock.

Institutional Investors Weigh In On Extreme Networks

Several hedge funds have recently added to or reduced their stakes in EXTR. BlackRock Inc. purchased a new stake in Extreme Networks during the second quarter valued at about $674,661,000. Paradigm Capital Management Inc. NY bought a new position in shares of Extreme Networks during the second quarter valued at about $137,291,000. Bank of America Corp DE bought a new position in shares of Extreme Networks during the second quarter valued at about $45,531,000. SEB Asset Management AB bought a new position in shares of Extreme Networks during the first quarter valued at about $12,192,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Extreme Networks in the second quarter worth about $23,896,000. Institutional investors own 91.05% of the company's stock.

Extreme Networks Price Performance

NASDAQ:EXTR opened at $22.46 on Thursday. The firm has a market capitalization of $2.97 billion, a price-to-earnings ratio of 72.45, a P/E/G ratio of 1.55 and a beta of 1.76. Extreme Networks has a 52-week low of $13.48 and a 52-week high of $33.73. The stock has a fifty day moving average of $22.71 and a 200 day moving average of $24.63. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.81 and a current ratio of 0.93.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last posted its earnings results on Wednesday, August 5th. The technology company reported $0.32 EPS for the quarter, topping the consensus estimate of $0.29 by $0.03. The business had revenue of $338.55 million during the quarter, compared to analysts' expectations of $332.49 million. Extreme Networks had a return on equity of 88.88% and a net margin of 3.28%. The firm's revenue was up 10.3% on a year-over-year basis. During the same period in the previous year, the business earned $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. On average, research analysts expect that Extreme Networks will post 0.75 EPS for the current fiscal year.

Extreme Networks Company Profile

Extreme Networks, Inc NASDAQ: EXTR develops enterprise networking solutions that help organizations connect, manage and secure users, devices and applications. Its portfolio includes wired and wireless network infrastructure, cloud-managed networking, network management software, analytics, security capabilities and software-defined wide-area networking solutions.

The company serves a broad range of customers, including businesses, schools and universities, healthcare organizations, government agencies, retailers, manufacturers and hospitality providers.

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