Extreme Networks (NASDAQ:EXTR) Given New $35.00 Price Target at Needham & Company LLC

Key Points

• Needham lowered Extreme Networks’ price target from $38 to $35 but maintained a Buy rating, implying roughly 33.5% upside from the reported $26.21 share price. The analyst consensus remains favorable, with six Buy ratings and two Holds.
• Extreme Networks exceeded quarterly expectations, reporting $0.32 EPS versus $0.29 expected and $338.55 million in revenue versus $332.49 million expected. Fiscal 2027 EPS guidance of $1.28–$1.33 also came in above consensus.
• The stock fell sharply to $26.21 despite the earnings beat, while its elevated valuation and position well above its 200-day moving average may have prompted profit-taking. Insiders have also sold shares recently, including notable transactions by the CEO and CFO.

Extreme Networks (NASDAQ:EXTR - Get Free Report) had its price target lowered by analysts at Needham & Company LLC from $38.00 to $35.00 in a report issued on Wednesday,Benzinga reports. The brokerage presently has a "buy" rating on the technology company's stock. Needham & Company LLC's price objective indicates a potential upside of 33.52% from the company's current price.

Several other equities research analysts have also recently weighed in on the stock. Bank of America boosted their price target on shares of Extreme Networks from $28.00 to $33.00 and gave the stock a "buy" rating in a research report on Monday, June 8th. Rosenblatt Securities lifted their price objective on shares of Extreme Networks from $29.00 to $39.00 and gave the stock a "buy" rating in a research note on Thursday, June 11th. B. Riley Financial restated a "buy" rating on shares of Extreme Networks in a report on Thursday, April 30th. Lake Street Capital upped their target price on shares of Extreme Networks from $25.00 to $34.00 and gave the company a "buy" rating in a research report on Monday, June 15th. Finally, Wall Street Zen downgraded shares of Extreme Networks from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 18th. Six investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $32.33.

Extreme Networks Price Performance

Extreme Networks stock traded down $6.13 during midday trading on Wednesday, reaching $26.21. 3,918,065 shares of the stock traded hands, compared to its average volume of 2,078,993. The stock has a market cap of $3.43 billion, a P/E ratio of 218.45, a PEG ratio of 1.84 and a beta of 1.79. The stock's fifty day moving average is $30.37 and its 200-day moving average is $21.73. The company has a quick ratio of 0.78, a current ratio of 0.91 and a debt-to-equity ratio of 1.89. Extreme Networks has a 12 month low of $13.48 and a 12 month high of $33.73.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The technology company reported $0.32 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.29 by $0.03. The business had revenue of $338.55 million for the quarter, compared to the consensus estimate of $332.49 million. Extreme Networks had a return on equity of 81.88% and a net margin of 1.30%.The company's revenue was up 10.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.25 EPS. 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. As a group, equities research analysts anticipate that Extreme Networks will post 0.53 EPS for the current year.

Insider Activity

In other news, CFO Kevin R. Rhodes sold 35,000 shares of the stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $30.43, for a total value of $1,065,050.00. Following the sale, the chief financial officer owned 151,296 shares of the company's stock, valued at approximately $4,603,937.28. This represents a 18.79% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Edward Meyercord sold 100,000 shares of the firm's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $26.10, for a total transaction of $2,610,000.00. Following the completion of the sale, the chief executive officer owned 1,721,902 shares of the company's stock, valued at $44,941,642.20. This trade represents a 5.49% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 422,182 shares of company stock worth $11,905,205. 3.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Extreme Networks

Large investors have recently bought and sold shares of the business. Caitong International Asset Management Co. Ltd purchased a new stake in Extreme Networks in the third quarter worth $31,000. Rockefeller Capital Management L.P. boosted its stake in shares of Extreme Networks by 313.7% during the fourth quarter. Rockefeller Capital Management L.P. now owns 1,957 shares of the technology company's stock valued at $33,000 after purchasing an additional 1,484 shares during the period. CWM LLC grew its holdings in shares of Extreme Networks by 51.7% in the fourth quarter. CWM LLC now owns 3,179 shares of the technology company's stock worth $53,000 after purchasing an additional 1,084 shares during the last quarter. Quarry LP grew its holdings in shares of Extreme Networks by 74.9% in the third quarter. Quarry LP now owns 2,610 shares of the technology company's stock worth $54,000 after purchasing an additional 1,118 shares during the last quarter. Finally, Advisors Asset Management Inc. increased its stake in Extreme Networks by 136.8% in the 4th quarter. Advisors Asset Management Inc. now owns 3,221 shares of the technology company's stock worth $54,000 after buying an additional 1,861 shares during the period. Hedge funds and other institutional investors own 91.05% of the company's stock.

Key Extreme Networks News

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

• Positive Sentiment: Extreme Networks reported fiscal Q4 earnings of $0.32 per share, exceeding the $0.29 consensus estimate and improving from $0.25 a year earlier. Revenue reached $338.55 million, above expectations of $332.49 million and up 10.3% year over year. Extreme Networks Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Fiscal 2027 EPS guidance of $1.28 to $1.33 is above the $1.21 analyst consensus. First-quarter EPS guidance of $0.27 to $0.29 also exceeds the $0.26 consensus, while projected first-quarter revenue of $334 million to $339 million is ahead of expectations. Extreme Networks Reports Fourth Quarter and Fiscal Year 2026 Financial Results
• Neutral Sentiment: Analysts maintain a generally favorable view, with six Buy ratings and two Hold ratings and an average price target of $32.83. However, the stock’s high earnings multiple leaves limited room for disappointment.
• Negative Sentiment: CEO Edward Meyercord sold 50,000 shares worth approximately $1.49 million under a pre-arranged Rule 10b5-1 plan, reducing his direct holdings by 3.04%. Although scheduled sales do not necessarily signal deteriorating business conditions, the transaction can add short-term selling pressure. Extreme Networks CEO Sells 50,000 Shares
• Negative Sentiment: Investors may be taking profits after a substantial rally: Extreme Networks trades well above its 200-day moving average and at a very elevated reported P/E ratio. That positioning can cause a “sell-the-news” reaction even after an earnings beat, helping explain the stock’s decline.

About Extreme Networks

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source