Extreme Networks (NASDAQ:EXTR) Hits New 12-Month High - Should You Buy?

Key Points

• Extreme Networks hit a new 52-week high, trading as high as $33.36 and recently near $32.86, reflecting strong recent momentum in the stock.
• Analyst sentiment has turned more positive, with several firms raising price targets; the stock now carries a Moderate Buy consensus and an average target price of $30.83.
• The company’s latest earnings beat expectations, with Q1 EPS of $0.26 versus $0.24 expected and revenue up 11.4% year over year, while insiders have recently sold shares and institutions remain heavily invested.

Extreme Networks, Inc. (NASDAQ:EXTR - Get Free Report)'s stock price hit a new 52-week high during trading on Friday . The stock traded as high as $33.36 and last traded at $32.86, with a volume of 153626 shares trading hands. The stock had previously closed at $32.87.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the company. Rosenblatt Securities upped their price target on Extreme Networks from $29.00 to $39.00 and gave the stock a "buy" rating in a report on Thursday, June 11th. UBS Group set a $28.00 target price on shares of Extreme Networks in a research report on Thursday, April 30th. Bank of America upped their target price on shares of Extreme Networks from $28.00 to $33.00 and gave the company a "buy" rating in a research note on Monday, June 8th. Needham & Company LLC raised their price target on shares of Extreme Networks from $21.00 to $26.00 and gave the company a "buy" rating in a report on Thursday, April 30th. Finally, Wall Street Zen raised shares of Extreme Networks from a "buy" rating to a "strong-buy" rating in a research note on Sunday, May 24th. Six analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $30.83.

Extreme Networks Trading Up 0.5%

The company has a current ratio of 0.91, a quick ratio of 0.78 and a debt-to-equity ratio of 1.89. The firm has a 50-day moving average price of $27.96 and a 200 day moving average price of $19.93. The company has a market cap of $4.32 billion, a price-to-earnings ratio of 274.79, a price-to-earnings-growth ratio of 1.91 and a beta of 1.77.

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

Insider Activity

In other Extreme Networks news, CEO Edward Meyercord sold 100,000 shares of the business's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $29.20, for a total transaction of $2,920,000.00. Following the completion of the transaction, the chief executive officer directly owned 1,621,902 shares of the company's stock, valued at $47,359,538.40. The trade was a 5.81% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Katayoun Motiey sold 30,000 shares of the business's stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $31.03, for a total value of $930,900.00. Following the transaction, the insider owned 120,834 shares of the company's stock, valued at approximately $3,749,479.02. This represents a 19.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 592,182 shares of company stock valued at $15,423,978. 3.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On Extreme Networks

Several hedge funds have recently modified their holdings of the company. Handelsbanken Fonder AB raised its position in Extreme Networks by 21.1% in the second quarter. Handelsbanken Fonder AB now owns 50,500 shares of the technology company's stock worth $1,635,000 after acquiring an additional 8,800 shares in the last quarter. First Bank & Trust raised its position in Extreme Networks by 2.4% during the second quarter. First Bank & Trust now owns 13,191 shares of the technology company's stock valued at $427,000 after buying an additional 306 shares during the period. GAMMA Investing LLC increased its holdings in shares of Extreme Networks by 13.2% in the 2nd quarter. GAMMA Investing LLC now owns 4,001 shares of the technology company's stock valued at $130,000 after purchasing an additional 465 shares during the period. Pacer Advisors Inc. increased its stake in Extreme Networks by 27.6% in the 1st quarter. Pacer Advisors Inc. now owns 17,898 shares of the technology company's stock valued at $270,000 after buying an additional 3,872 shares during the period. Finally, Glenmede Trust Co. NA purchased a new stake in shares of Extreme Networks during the first quarter worth $10,129,000. 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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