Extreme Networks (NASDAQ:EXTR) Reaches New 12-Month High - What's Next?

Key Points

• Extreme Networks shares reached a new 52-week high, trading at $22.55 after hitting a peak of $22.71.
• Analysts have shown increased confidence in the stock, with several firms raising their target prices, the highest being $25.00 from Rosenblatt Securities.
• Despite a negative net margin of -0.65%, the company reported a revenue increase of 19.6% year-over-year, highlighting strong growth potential.

Extreme Networks, Inc. (NASDAQ:EXTR - Get Free Report) shares reached a new 52-week high on Thursday . The stock traded as high as $22.71 and last traded at $22.55, with a volume of 127332 shares traded. The stock had previously closed at $22.36.

Analyst Ratings Changes

Several research analysts have weighed in on the stock. UBS Group increased their price target on shares of Extreme Networks from $15.00 to $21.00 and gave the stock a "neutral" rating in a research report on Thursday, August 7th. Rosenblatt Securities raised their target price on shares of Extreme Networks from $20.00 to $25.00 and gave the stock a "buy" rating in a research note on Thursday, August 7th. Lake Street Capital upgraded shares of Extreme Networks from a "hold" rating to a "buy" rating and set a $24.00 target price on the stock in a research note on Thursday, August 7th. Wall Street Zen upgraded shares of Extreme Networks from a "buy" rating to a "strong-buy" rating in a research note on Thursday, May 22nd. Finally, Needham & Company LLC raised their target price on shares of Extreme Networks from $20.00 to $24.00 and gave the stock a "buy" rating in a research note on Thursday, August 7th. Five research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $22.92.

Extreme Networks Stock Performance

The stock has a market cap of $3.02 billion, a P/E ratio of -454.26, a PEG ratio of 2.31 and a beta of 1.84. The company has a debt-to-equity ratio of 2.50, a current ratio of 0.91 and a quick ratio of 0.74. The firm's 50-day moving average price is $19.39 and its 200-day moving average price is $16.34.

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

Insider Buying and Selling at Extreme Networks

In related news, CFO Kevin R. Rhodes sold 14,000 shares of the firm's stock in a transaction on Thursday, August 28th. The shares were sold at an average price of $21.52, for a total value of $301,280.00. Following the completion of the transaction, the chief financial officer directly owned 126,202 shares of the company's stock, valued at approximately $2,715,867.04. This trade represents a 9.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Raj Khanna sold 15,000 shares of the firm's stock in a transaction on Thursday, August 21st. The shares were sold at an average price of $19.91, for a total transaction of $298,650.00. Following the completion of the transaction, the director directly owned 216,708 shares of the company's stock, valued at approximately $4,314,656.28. This trade represents a 6.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 149,450 shares of company stock valued at $2,838,234. 3.70% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Principal Financial Group Inc. grew its holdings in shares of Extreme Networks by 3.0% in the first quarter. Principal Financial Group Inc. now owns 661,779 shares of the technology company's stock valued at $8,755,000 after purchasing an additional 19,248 shares in the last quarter. GAMMA Investing LLC boosted its stake in Extreme Networks by 2,619.8% during the first quarter. GAMMA Investing LLC now owns 41,939 shares of the technology company's stock worth $555,000 after buying an additional 40,397 shares during the period. Edgestream Partners L.P. boosted its stake in Extreme Networks by 76.9% during the first quarter. Edgestream Partners L.P. now owns 327,356 shares of the technology company's stock worth $4,331,000 after buying an additional 142,332 shares during the period. Impax Asset Management Group plc boosted its stake in Extreme Networks by 41.5% during the first quarter. Impax Asset Management Group plc now owns 955,178 shares of the technology company's stock worth $12,637,000 after buying an additional 280,000 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in Extreme Networks by 24.1% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 297,225 shares of the technology company's stock worth $4,976,000 after buying an additional 57,810 shares during the period. 91.05% of the stock is owned by hedge funds and other 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.

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