Extreme Networks (NASDAQ:EXTR) Raised to Buy at Lake Street Capital

Key Points

• Extreme Networks has been upgraded to a buy rating by Lake Street Capital, with a price target of $24.00, indicating a potential upside of 19.53% from the current stock price.
• Multiple firms have adjusted their price targets on Extreme Networks, with Needham increasing their target from $20.00 to $24.00 and UBS lowering theirs from $16.50 to $15.00, reflecting mixed analyst sentiment.
• The company has seen significant activity from institutional investors, including Barrow Hanley Mewhinney & Strauss LLC, which increased its position in Extreme Networks by 397,835.5% in the fourth quarter.

Extreme Networks (NASDAQ:EXTR - Get Free Report) was upgraded by Lake Street Capital from a "hold" rating to a "buy" rating in a research note issued to investors on Thursday, Marketbeat Ratings reports. The brokerage presently has a $24.00 price target on the technology company's stock. Lake Street Capital's target price points to a potential upside of 19.51% from the company's current price.

A number of other equities research analysts also recently issued reports on the stock. Rosenblatt Securities lifted their price target on shares of Extreme Networks from $20.00 to $25.00 and gave the company a "buy" rating in a research report on Thursday. UBS Group reduced their target price on shares of Extreme Networks from $16.50 to $15.00 and set a "neutral" rating on the stock in a report on Thursday, May 1st. Needham & Company LLC boosted their target price on shares of Extreme Networks from $20.00 to $24.00 and gave the company a "buy" rating in a report on Thursday. Finally, Wall Street Zen raised shares of Extreme Networks from a "buy" rating to a "strong-buy" rating in a research report on Thursday, May 22nd. One equities research analyst has rated the stock with a hold rating, five have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, Extreme Networks has an average rating of "Buy" and an average price target of $22.92.

Extreme Networks Stock Up 0.7%

Shares of EXTR stock traded up $0.13 on Thursday, hitting $20.08. The stock had a trading volume of 614,143 shares, compared to its average volume of 1,238,649. The company has a market cap of $2.67 billion, a PE ratio of -401.22, a P/E/G ratio of 2.22 and a beta of 1.75. The company has a quick ratio of 0.74, a current ratio of 0.91 and a debt-to-equity ratio of 2.50. Extreme Networks has a one year low of $10.10 and a one year high of $21.34. The business has a 50 day moving average price of $17.55 and a 200 day moving average price of $15.52.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last posted its earnings results on Wednesday, August 6th. The technology company reported $0.25 EPS for the quarter, topping the consensus estimate of $0.22 by $0.03. Extreme Networks had a positive return on equity of 82.47% and a negative net margin of 0.65%. The firm had revenue of $307.00 million for the quarter, compared to analyst estimates of $299.88 million. During the same period last year, the company earned ($0.08) earnings per share. Extreme Networks's revenue for the quarter was up 19.6% compared to the same quarter last year. Research analysts anticipate that Extreme Networks will post 0.31 earnings per share for the current fiscal year.

Insider Transactions at Extreme Networks

In other news, Director Raj Khanna sold 7,973 shares of Extreme Networks stock in a transaction dated Monday, June 23rd. The stock was sold at an average price of $17.20, for a total transaction of $137,135.60. Following the completion of the sale, the director owned 233,735 shares in the company, valued at approximately $4,020,242. This trade represents a 3.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Edward Meyercord sold 35,725 shares of the firm's stock in a transaction on Friday, August 1st. The stock was sold at an average price of $17.18, for a total transaction of $613,755.50. Following the completion of the sale, the chief executive officer directly owned 1,541,282 shares in the company, valued at approximately $26,479,224.76. This trade represents a 2.27% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 81,450 shares of company stock valued at $1,436,774. Insiders own 3.70% of the company's stock.

Institutional Trading of Extreme Networks

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Sterling Capital Management LLC boosted its position in Extreme Networks by 603.3% during the 4th quarter. Sterling Capital Management LLC now owns 1,941 shares of the technology company's stock valued at $32,000 after acquiring an additional 1,665 shares in the last quarter. Orion Capital Management LLC purchased a new position in shares of Extreme Networks during the 4th quarter valued at approximately $33,000. Quarry LP raised its holdings in shares of Extreme Networks by 42.1% during the fourth quarter. Quarry LP now owns 2,426 shares of the technology company's stock valued at $41,000 after acquiring an additional 719 shares during the last quarter. GAMMA Investing LLC lifted its position in Extreme Networks by 105.6% during the first quarter. GAMMA Investing LLC now owns 3,170 shares of the technology company's stock worth $42,000 after buying an additional 1,628 shares in the last quarter. Finally, Byrne Asset Management LLC raised its holdings in Extreme Networks by 115.6% in the 1st quarter. Byrne Asset Management LLC now owns 3,881 shares of the technology company's stock valued at $51,000 after buying an additional 2,081 shares during the period. 91.05% of the stock is currently owned by institutional investors.

Extreme Networks Company Profile

Extreme Networks, Inc delivers cloud-driven networking solutions that leverage the powers of machine learning, artificial intelligence, analytics, and automation. The company designs, develops, and manufactures wired and wireless network infrastructure equipment and develops the software for network management, policy, analytics, security, and access controls.