Extreme Networks (NASDAQ:EXTR) Hits New 1-Year High - What's Next?

Key Points

• Extreme Networks hit a new 52-week high, trading as high as $25.21 after closing previously at $23.90.
• Analyst sentiment remains mostly positive: several firms reiterated or raised Buy ratings, with a consensus rating of Moderate Buy and an average price target of $25.50.
• The company recently beat quarterly estimates, posting $0.26 EPS versus $0.24 expected and revenue of $316.87 million, while insiders have sold shares in recent months.

Extreme Networks, Inc. (NASDAQ:EXTR - Get Free Report)'s stock price hit a new 52-week high on Friday . The company traded as high as $25.21 and last traded at $25.0510, with a volume of 435688 shares. The stock had previously closed at $23.90.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. Needham & Company LLC increased their target price on shares of 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 research note on Thursday, April 30th. Rosenblatt Securities restated a "buy" rating and set a $25.00 price objective on shares of Extreme Networks in a research note on Thursday, January 29th. Wall Street Zen downgraded Extreme Networks from a "strong-buy" rating to a "buy" rating in a research note on Saturday, May 16th. Finally, UBS Group set a $28.00 price objective on Extreme Networks in a research note on Thursday, April 30th. Six investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $25.50.

Extreme Networks Stock Performance

The stock has a market capitalization of $3.31 billion, a P/E ratio of 211.58, a P/E/G ratio of 2.22 and a beta of 1.77. The stock has a 50 day moving average of $18.35 and a 200 day moving average of $16.87. 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 (NASDAQ:EXTR - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The technology company reported $0.26 EPS for the quarter, topping analysts' consensus estimates of $0.24 by $0.02. The firm had revenue of $316.87 million during 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 firm's revenue was up 11.4% on a year-over-year basis. During the same period in the prior year, the business earned $0.21 EPS. Extreme Networks has set its Q4 2026 guidance at 0.280-0.300 EPS. Equities analysts predict that Extreme Networks, Inc. will post 0.53 EPS for the current year.

Insider Activity

In other Extreme Networks news, Director Raj Khanna sold 10,000 shares of Extreme Networks stock in a transaction 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 owned 210,062 shares of the company's stock, valued at $4,873,438.40. The trade was a 4.54% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 on Tuesday, May 5th. The shares were sold at an average price of $23.12, for a total value of $490,352.08. Following the sale, the chief executive officer directly owned 1,797,270 shares in the company, valued at $41,552,882.40. The trade was a 1.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 297,182 shares of company stock worth $6,448,528 over the last ninety days. 3.60% of the stock is currently owned by company insiders.

Institutional Trading of Extreme Networks

Several hedge funds have recently added to or reduced their stakes in the business. Bank of America Corp DE raised its stake in Extreme Networks by 73.5% during the 1st quarter. Bank of America Corp DE now owns 757,072 shares of the technology company's stock valued at $11,417,000 after acquiring an additional 320,743 shares in the last quarter. Amundi raised its stake in Extreme Networks by 21.4% during the 1st quarter. Amundi now owns 376,970 shares of the technology company's stock valued at $5,685,000 after acquiring an additional 66,400 shares in the last quarter. California State Teachers Retirement System increased its position in shares of Extreme Networks by 27.1% during the 1st quarter. California State Teachers Retirement System now owns 162,500 shares of the technology company's stock valued at $2,450,000 after purchasing an additional 34,696 shares during the period. Polar Asset Management Partners Inc. acquired a new position in shares of Extreme Networks during the 1st quarter valued at $6,961,000. Finally, Entropy Technologies LP increased its position 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 valued at $479,000 after purchasing an additional 2,730 shares during the period. Institutional investors 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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