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

Key Points

• Extreme Networks has a consensus analyst rating of “Moderate Buy” from eight covering firms, with six buy ratings, one hold, and one sell. The average 12-month price target is $25.50.
• The company reported better-than-expected quarterly results, posting EPS of $0.26 versus the $0.24 estimate and revenue of $316.87 million versus $311.48 million expected. Revenue also rose 11.4% year over year.
• Insiders recently sold shares, including the CEO and a director, and hedge funds have been increasing positions. Institutional investors now own 91.05% of the company’s stock.

Extreme Networks, Inc. (NASDAQ:EXTR - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the eight research firms that are currently covering the firm, MarketBeat Ratings reports. One research analyst has rated the stock with a sell rating, one has assigned a hold rating and six have given a buy rating to the company. The average 12-month target price among brokers that have covered the stock in the last year is $25.50.

EXTR has been the topic of several analyst reports. UBS Group set a $28.00 target price on Extreme Networks in a report on Thursday, April 30th. Rosenblatt Securities restated a "buy" rating and set a $25.00 price objective on shares of Extreme Networks in a report on Thursday, January 29th. Needham & Company LLC lifted their price objective on Extreme Networks from $21.00 to $26.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. B. Riley Financial restated a "buy" rating on shares of Extreme Networks in a report on Thursday, April 30th. Finally, Wall Street Zen downgraded Extreme Networks from a "strong-buy" rating to a "buy" rating in a report on Saturday.

Extreme Networks Stock Performance

Shares of NASDAQ:EXTR opened at $24.66 on Monday. The company has a market cap of $3.23 billion, a P/E ratio of 205.50, a PEG ratio of 2.33 and a beta of 1.77. The company has a debt-to-equity ratio of 1.89, a quick ratio of 0.78 and a current ratio of 0.91. Extreme Networks has a one year low of $13.48 and a one year high of $25.13. The business's 50-day simple moving average is $17.59 and its 200 day simple moving average is $16.74.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last announced its earnings results on Wednesday, April 29th. The technology company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.24 by $0.02. The business had revenue of $316.87 million for the quarter, compared to the consensus estimate of $311.48 million. Extreme Networks had a return on equity of 81.88% and a net margin of 1.30%.The company's revenue was up 11.4% on a year-over-year basis. During the same period last year, the business posted $0.21 EPS. Extreme Networks has set its Q4 2026 guidance at 0.280-0.300 EPS. On average, sell-side analysts forecast that Extreme Networks will post 0.53 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Extreme Networks news, Director Raj Khanna sold 10,000 shares of Extreme Networks stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $23.20, for a total transaction of $232,000.00. Following the sale, the director directly owned 210,062 shares in the company, valued at $4,873,438.40. The trade was a 4.54% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Edward Meyercord sold 21,209 shares of Extreme Networks stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $23.12, for a total value of $490,352.08. Following the sale, the chief executive officer owned 1,797,270 shares in the company, valued at $41,552,882.40. This represents a 1.17% 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. Insiders have sold 270,000 shares of company stock worth $5,773,273 in the last three months. 3.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in EXTR. Royal Bank of Canada grew its position in shares of Extreme Networks by 20.8% in the 1st quarter. Royal Bank of Canada now owns 73,610 shares of the technology company's stock worth $974,000 after acquiring an additional 12,667 shares in the last quarter. AQR Capital Management LLC grew its position in shares of Extreme Networks by 6.6% in the 1st quarter. AQR Capital Management LLC now owns 34,375 shares of the technology company's stock worth $455,000 after acquiring an additional 2,122 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Extreme Networks by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 76,723 shares of the technology company's stock worth $1,015,000 after acquiring an additional 3,349 shares in the last quarter. Millennium Management LLC grew its position in shares of Extreme Networks by 163.0% in the 1st quarter. Millennium Management LLC now owns 1,260,362 shares of the technology company's stock worth $16,675,000 after acquiring an additional 781,103 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of Extreme Networks by 7.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 319,434 shares of the technology company's stock worth $4,226,000 after acquiring an additional 22,209 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.

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