Extreme Networks (NASDAQ:EXTR) Raised to Strong-Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Extreme Networks to “strong buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $32.25.
• Extreme Networks exceeded quarterly expectations, reporting EPS of $0.32 versus $0.29 expected and revenue of $338.55 million, up 10.3% year over year; fiscal 2027 EPS guidance is $1.28–$1.33.
• The stock traded at $23.97, down 1.4%, amid mixed target revisions and significant insider selling; valuation concerns persist given its P/E ratio of 77.33.

Extreme Networks (NASDAQ:EXTR - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a note issued to investors on Saturday.

A number of other analysts also recently issued reports on the company. Needham & Company LLC dropped their price target on Extreme Networks from $38.00 to $35.00 and set a "buy" rating for the company in a research report on Wednesday. B. Riley Financial upped their price objective on shares of Extreme Networks from $28.00 to $34.00 and gave the stock a "buy" rating in a research report on Thursday. UBS Group set a $28.00 target price on shares of Extreme Networks in a research note on Thursday, April 30th. Bank of America lifted their target price on shares of Extreme Networks from $28.00 to $33.00 and gave the company a "buy" rating in a research report on Monday, June 8th. Finally, Rosenblatt Securities cut their price target on shares of Extreme Networks from $39.00 to $38.00 and set a "buy" rating for the company in a research note on Thursday. Seven equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $32.25.

Extreme Networks Trading Down 1.4%

Extreme Networks stock opened at $23.97 on Friday. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.78 and a current ratio of 0.93. Extreme Networks has a fifty-two week low of $13.48 and a fifty-two week high of $33.73. The stock has a market cap of $3.13 billion, a P/E ratio of 77.33, a PEG ratio of 1.48 and a beta of 1.79. The firm's fifty day moving average price is $30.27 and its 200-day moving average price is $21.88.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The technology company reported $0.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.03. Extreme Networks had a return on equity of 88.88% and a net margin of 3.28%.The company had revenue of $338.55 million during the quarter, compared to analyst estimates of $332.49 million. During the same quarter last year, the company earned $0.25 earnings per share. The firm's quarterly revenue was up 10.3% on a year-over-year basis. 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. Equities research analysts forecast that Extreme Networks will post 0.81 earnings per share for the current fiscal year.

Insider Transactions at Extreme Networks

In related news, 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 completion of the sale, the insider owned 120,834 shares in the company, valued at $3,749,479.02. The trade was a 19.89% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Kathleen M. Holmgren sold 19,521 shares of the business's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $24.78, for a total value of $483,730.38. Following the completion of the sale, the director owned 219,308 shares of the company's stock, valued at $5,434,452.24. The trade was a 8.17% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 422,182 shares of company stock valued at $11,905,205 over the last quarter. 3.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. BlackRock Inc. purchased a new stake in Extreme Networks during the second quarter valued at about $674,661,000. Alyeska Investment Group L.P. increased its holdings in shares of Extreme Networks by 301.9% in the fourth quarter. Alyeska Investment Group L.P. now owns 2,971,718 shares of the technology company's stock worth $49,479,000 after buying an additional 2,232,373 shares during the period. Jain Global LLC bought a new stake in shares of Extreme Networks in the 4th quarter valued at about $17,361,000. SEB Asset Management AB bought a new stake in shares of Extreme Networks in the 1st quarter valued at about $12,192,000. Finally, Millennium Management LLC boosted its holdings in Extreme Networks by 163.0% during the 1st quarter. Millennium Management LLC now owns 1,260,362 shares of the technology company's stock valued at $16,675,000 after acquiring an additional 781,103 shares during the period. 91.05% of the stock is owned by hedge funds and other institutional investors.

Extreme Networks News Summary

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

• Positive Sentiment: Strong quarterly results: Extreme Networks reported fiscal Q4 adjusted EPS of $0.32, ahead of the $0.29 consensus estimate, while revenue of $338.55 million exceeded expectations of $332.49 million and increased 10.3% year over year. The company also issued fiscal 2027 EPS guidance of $1.28-$1.33. Extreme Networks Fiscal Q4 Earnings Snapshot
• Positive Sentiment: B. Riley raised its target: B. Riley Financial increased its price target from $28 to $34 and maintained a “buy” rating, signaling substantial potential upside based on its outlook for EXTR. Extreme Networks Price Target Raised at B. Riley Financial
• Positive Sentiment: Rosenblatt remains bullish: Rosenblatt Securities trimmed its target modestly from $39 to $38 but retained a “buy” rating, indicating continued confidence despite the adjustment.
• Neutral Sentiment: Upcoming investor conferences: Extreme Networks will participate in investor conferences during August and September, giving management opportunities to discuss demand, execution, and its financial outlook with investors. Extreme Networks Announces Investor Conferences
• Negative Sentiment: Insider selling pressured the shares: Reports of insider sales prompted a gap lower, raising concerns about management or other insiders reducing exposure after the stock’s previous rally. Extreme Networks Shares Gap Down on Insider Selling
• Negative Sentiment: Valuation concerns remain: One analysis argues that Extreme Networks is still overvalued even after its pullback. With a high earnings multiple and only modest profitability, investors may be taking profits despite the earnings beat. Extreme Networks Q4 Fine Print But Still Overvalued After the Pullback
• Negative Sentiment: Mixed target revisions: Needham lowered its price target to $35, while the differing analyst revisions suggest expectations remain positive but are not uniformly strengthening. Extreme Networks Price Target Lowered at Needham

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.

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