Extreme Networks (NASDAQ:EXTR) Downgraded to Buy Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Extreme Networks (NASDAQ:EXTR) from a "strong-buy" to a "buy," while the stock's consensus remains a Moderate Buy with an average analyst target of $22.67.
• Extreme reported a quarterly beat with EPS $0.26 versus $0.24 expected and revenue of $317.9M (up 13.8% y/y), and issued Q3 2026 guidance of $0.230–0.250 and FY2026 guidance of $0.980–1.020 EPS.
• CEO Edward Meyercord sold 50,000 shares under a Rule 10b5‑1 plan for about $765,000, reducing his stake to ~1.897M shares; insiders own 3.6% while institutions hold 91.05% of the stock.

Extreme Networks (NASDAQ:EXTR - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

Several other research firms have also recently commented on EXTR. Rosenblatt Securities restated a "buy" rating and set a $25.00 price target on shares of Extreme Networks in a report on Thursday, January 29th. Needham & Company LLC lowered their price target on shares of Extreme Networks from $24.00 to $21.00 and set a "buy" rating on the stock in a report on Thursday, January 29th. UBS Group reiterated a "neutral" rating and issued a $17.00 price objective on shares of Extreme Networks in a report on Thursday, January 29th. Finally, Weiss Ratings cut shares of Extreme Networks from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, February 17th. Six analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $22.67.

Extreme Networks Trading Up 4.1%

Extreme Networks stock opened at $17.59 on Friday. The company's fifty day simple moving average is $15.40 and its 200-day simple moving average is $16.60. The company has a quick ratio of 0.80, a current ratio of 0.95 and a debt-to-equity ratio of 1.61. Extreme Networks has a 12 month low of $12.29 and a 12 month high of $22.89. The stock has a market cap of $2.36 billion, a P/E ratio of 251.32, a P/E/G ratio of 1.78 and a beta of 1.62.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last posted its quarterly earnings results on Wednesday, January 28th. The technology company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.24 by $0.02. Extreme Networks had a net margin of 0.75% and a return on equity of 75.56%. The business had revenue of $317.93 million for the quarter, compared to analysts' expectations of $312.33 million. During the same period in the previous year, the company posted $0.21 EPS. Extreme Networks's revenue was up 13.8% on a year-over-year basis. Extreme Networks has set its Q3 2026 guidance at 0.230-0.250 EPS and its FY 2026 guidance at 0.980-1.020 EPS. As a group, sell-side analysts forecast that Extreme Networks will post 0.47 EPS for the current fiscal year.

Insider Transactions at Extreme Networks

In related news, CEO Edward Meyercord sold 50,000 shares of the company's stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $15.30, for a total value of $765,000.00. Following the completion of the sale, the chief executive officer directly owned 1,897,270 shares in the company, valued at approximately $29,028,231. This represents a 2.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 3.60% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of EXTR. CWM LLC raised its holdings in shares of Extreme Networks by 44.8% during the third quarter. CWM LLC now owns 2,095 shares of the technology company's stock worth $43,000 after acquiring an additional 648 shares during the period. Envestnet Asset Management Inc. raised its holdings in shares of Extreme Networks by 3.1% during the third quarter. Envestnet Asset Management Inc. now owns 22,783 shares of the technology company's stock worth $470,000 after acquiring an additional 683 shares during the period. Arizona State Retirement System raised its holdings in shares of Extreme Networks by 1.8% during the third quarter. Arizona State Retirement System now owns 39,405 shares of the technology company's stock worth $814,000 after acquiring an additional 685 shares during the period. ProShare Advisors LLC raised its holdings in shares of Extreme Networks by 3.0% during the fourth quarter. ProShare Advisors LLC now owns 25,609 shares of the technology company's stock worth $426,000 after acquiring an additional 735 shares during the period. Finally, Oregon Public Employees Retirement Fund raised its holdings in shares of Extreme Networks by 3.0% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 30,633 shares of the technology company's stock worth $510,000 after acquiring an additional 900 shares during the period. 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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