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

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) hit a new 52-week high during trading on Thursday . The stock traded as high as $22.71 and last traded at $22.55, with a volume of 127332 shares. The stock had previously closed at $22.36.

Analysts Set New Price Targets

Several equities research analysts recently commented on EXTR shares. UBS Group boosted their price target on shares of Extreme Networks from $15.00 to $21.00 and gave the stock a "neutral" rating in a report on Thursday, August 7th. Needham & Company LLC boosted their price target on shares of Extreme Networks from $20.00 to $24.00 and gave the stock a "buy" rating in a report on Thursday, August 7th. Lake Street Capital raised shares of Extreme Networks from a "hold" rating to a "buy" rating and set a $24.00 price target for the company in a report on Thursday, August 7th. Wall Street Zen raised shares of Extreme Networks from a "buy" rating to a "strong-buy" rating in a report on Thursday, May 22nd. Finally, Rosenblatt Securities boosted their price target on shares of Extreme Networks from $20.00 to $25.00 and gave the stock a "buy" rating in a report on Thursday, August 7th. Five investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $22.92.

Extreme Networks Price Performance

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 stock's fifty day moving average price is $19.62 and its 200-day moving average price is $16.51. The firm has a market cap of $3.00 billion, a PE ratio of -450.60, a price-to-earnings-growth ratio of 2.34 and a beta of 1.84.

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

Insider Activity

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

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. Orion Capital Management LLC acquired a new stake in shares of Extreme Networks during the fourth quarter worth about $33,000. GAMMA Investing LLC lifted its position in shares of 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 purchasing an additional 1,628 shares in the last quarter. Byrne Asset Management LLC lifted its position in shares of Extreme Networks by 115.6% during the first quarter. Byrne Asset Management LLC now owns 3,881 shares of the technology company's stock worth $51,000 after purchasing an additional 2,081 shares in the last quarter. Globeflex Capital L P acquired a new stake in shares of Extreme Networks during the second quarter worth about $102,000. Finally, Steward Partners Investment Advisory LLC lifted its position in shares of Extreme Networks by 2,616.2% during the second quarter. Steward Partners Investment Advisory LLC now owns 5,867 shares of the technology company's stock worth $105,000 after purchasing an additional 5,651 shares in the last quarter. Hedge funds and other institutional investors own 91.05% of the company's stock.

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.