Extreme Networks (NASDAQ:EXTR) Hits New 52-Week High - Time to Buy?

Key Points

• Extreme Networks shares hit a new 52-week high, trading as high as $31.68 and last up about 1.5% on the day. The move came as the stock continued to outperform its 50-day and 200-day moving averages.
• Analyst sentiment remains mostly positive, with several firms raising price targets and issuing buy ratings. The stock currently carries a “Moderate Buy” consensus and an average price target of $29.33.
• The company recently posted solid quarterly results, beating EPS and revenue estimates, while insiders have been selling shares in recent months. CFO Kevin R. Rhodes and Director Edward H. Kennedy both trimmed positions, and insiders have sold 642,182 shares over the past 90 days.

Extreme Networks, Inc. (NASDAQ:EXTR - Get Free Report)'s stock price hit a new 52-week high on Monday . The company traded as high as $31.68 and last traded at $31.4550, with a volume of 1518 shares. The stock had previously closed at $31.11.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the stock. Needham & Company LLC lifted 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. Weiss Ratings lowered shares of Extreme Networks from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, May 15th. UBS Group set a $28.00 target price on shares of Extreme Networks in a report on Thursday, April 30th. Rosenblatt Securities lifted their target price on Extreme Networks from $29.00 to $39.00 and gave the company a "buy" rating in a research note on Thursday. Finally, Bank of America upped their target price on Extreme Networks from $28.00 to $33.00 and gave the company a "buy" rating in a report on Monday, June 8th. Six equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Extreme Networks presently has a consensus rating of "Moderate Buy" and an average price target of $29.33.

Extreme Networks Stock Up 1.5%

The company has a quick ratio of 0.78, a current ratio of 0.91 and a debt-to-equity ratio of 1.89. The firm's 50-day moving average price is $22.58 and its 200 day moving average price is $18.07. The firm has a market cap of $4.13 billion, a P/E ratio of 263.92, a price-to-earnings-growth ratio of 2.94 and a beta of 1.81.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The technology company reported $0.26 earnings per share for the quarter, beating the consensus estimate 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 the consensus estimate of $311.48 million. During the same period last year, the firm posted $0.21 EPS. Extreme Networks's quarterly revenue was up 11.4% compared to the same quarter last year. Extreme Networks has set its Q4 2026 guidance at 0.280-0.300 EPS. As a group, research analysts expect that Extreme Networks, Inc. will post 0.53 earnings per share for the current year.

Insiders Place Their Bets

In other Extreme Networks news, CFO Kevin R. Rhodes sold 35,000 shares of Extreme Networks stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $30.43, for a total transaction of $1,065,050.00. Following the sale, the chief financial officer owned 151,296 shares of the company's stock, valued at $4,603,937.28. The trade was a 18.79% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Edward H. Kennedy sold 50,000 shares of the business's stock in a transaction on Monday, May 4th. The stock was sold at an average price of $22.86, for a total value of $1,143,000.00. Following the transaction, the director owned 576,045 shares of the company's stock, valued at $13,168,388.70. This trade represents a 7.99% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 642,182 shares of company stock valued at $16,188,978. Corporate insiders own 3.60% of the company's stock.

Institutional Investors Weigh In On Extreme Networks

A number of hedge funds and other institutional investors have recently modified their holdings of EXTR. Royal Bank of Canada lifted its stake in shares of Extreme Networks by 20.8% in the 1st quarter. Royal Bank of Canada now owns 73,610 shares of the technology company's stock worth $974,000 after acquiring an additional 12,667 shares during the period. AQR Capital Management LLC increased its stake in shares of Extreme Networks by 6.6% during the first quarter. AQR Capital Management LLC now owns 34,375 shares of the technology company's stock valued at $455,000 after acquiring an additional 2,122 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Extreme Networks by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 76,723 shares of the technology company's stock worth $1,015,000 after purchasing an additional 3,349 shares in the last quarter. Millennium Management LLC raised its holdings in Extreme Networks by 163.0% during the first quarter. Millennium Management LLC now owns 1,260,362 shares of the technology company's stock worth $16,675,000 after purchasing an additional 781,103 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Extreme Networks by 7.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 319,434 shares of the technology company's stock worth $4,226,000 after purchasing an additional 22,209 shares during the period. 91.05% of the stock is currently owned by institutional investors.

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.

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