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

Key Points

• Wall Street Zen downgraded Extreme Networks from “strong-buy” to “buy”, while the broader analyst view remains constructive with a Moderate Buy consensus and an average price target of $25.50.
• The company’s latest quarter was solid, with EPS of $0.26 beating estimates and revenue of $316.87 million also topping expectations; revenue rose 11.4% year over year.
• Insider selling has been notable, including recent sales by the CEO and a director, even as institutional investors such as Renaissance Technologies and Paradigm Capital increased their holdings.

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

Other equities research analysts have also recently issued reports about the stock. Lake Street Capital reaffirmed a "buy" rating and issued a $25.00 price objective on shares of Extreme Networks in a research report on Thursday, April 30th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $25.00 price objective on shares of Extreme Networks in a research report on Thursday, January 29th. Weiss Ratings raised shares of Extreme Networks from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, May 1st. Needham & Company LLC boosted their price objective on shares of Extreme Networks from $21.00 to $26.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Finally, B. Riley Financial reaffirmed a "buy" rating on shares of Extreme Networks in a research report on Thursday, April 30th. Six analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, Extreme Networks has a consensus rating of "Moderate Buy" and an average target price of $25.50.

Extreme Networks Trading Down 0.2%

EXTR opened at $24.66 on Friday. The stock has a market capitalization of $3.22 billion, a P/E ratio of 205.50, a P/E/G ratio of 2.33 and a beta of 1.77. Extreme Networks has a 12 month low of $13.48 and a 12 month high of $25.13. The firm's fifty day simple moving average is $17.59 and its 200 day simple moving average is $16.77. The company has a current ratio of 0.91, a quick ratio of 0.78 and a debt-to-equity ratio of 1.89.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last posted its quarterly earnings data 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 analysts' expectations of $311.48 million. Extreme Networks had a net margin of 1.30% and a return on equity of 81.88%. The firm's revenue was up 11.4% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.21 EPS. Extreme Networks has set its Q4 2026 guidance at 0.280-0.300 EPS. As a group, research analysts anticipate that Extreme Networks will post 0.53 EPS for the current fiscal year.

Insiders Place Their Bets

In other Extreme Networks news, CEO Edward Meyercord sold 21,209 shares of the business's stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $23.12, for a total transaction of $490,352.08. Following the sale, the chief executive officer directly owned 1,797,270 shares of the company's stock, valued at $41,552,882.40. The trade was a 1.17% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Edward H. Kennedy sold 50,000 shares of the business's stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $22.86, for a total transaction of $1,143,000.00. Following the transaction, the director owned 576,045 shares in the company, valued at $13,168,388.70. This represents a 7.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 270,000 shares of company stock valued at $5,773,273 in the last three months. 3.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Entropy Technologies LP increased its stake in shares of Extreme Networks by 9.4% during the 1st quarter. Entropy Technologies LP now owns 31,749 shares of the technology company's stock worth $479,000 after purchasing an additional 2,730 shares during the last quarter. Renaissance Technologies LLC increased its stake in shares of Extreme Networks by 32.6% during the 1st quarter. Renaissance Technologies LLC now owns 2,076,080 shares of the technology company's stock worth $31,307,000 after purchasing an additional 510,215 shares during the last quarter. Paradigm Capital Management Inc. NY increased its stake in shares of Extreme Networks by 5.3% during the 1st quarter. Paradigm Capital Management Inc. NY now owns 5,234,900 shares of the technology company's stock worth $78,942,000 after purchasing an additional 262,400 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its stake in shares of Extreme Networks by 7.6% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,247,680 shares of the technology company's stock worth $48,975,000 after purchasing an additional 230,617 shares during the last quarter. Finally, Sei Investments Co. increased its stake in shares of Extreme Networks by 50.8% during the 1st quarter. Sei Investments Co. now owns 360,866 shares of the technology company's stock worth $5,442,000 after purchasing an additional 121,535 shares during the last quarter. 91.05% of the stock is currently owned by institutional investors and hedge funds.

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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