Extreme Networks (NASDAQ:EXTR) Sees Strong Trading Volume - Here's Why

Key Points

• Extreme Networks saw a significant trading volume increase of 175% with approximately 3.58 million shares traded compared to the previous session.
• Analyst ratings have generally improved, with several firms raising their target prices, including Rosenblatt Securities increasing it from $20.00 to $25.00 and maintaining a "buy" rating.
• The company reported strong quarterly earnings with $0.25 EPS, exceeding estimates, alongside a 19.6% year-over-year revenue growth.

Extreme Networks, Inc. (NASDAQ:EXTR - Get Free Report) shares saw unusually-strong trading volume on Friday . Approximately 3,576,883 shares were traded during mid-day trading, an increase of 175% from the previous session's volume of 1,300,345 shares.The stock last traded at $20.60 and had previously closed at $20.91.

Analyst Upgrades and Downgrades

EXTR has been the subject of a number of research analyst reports. Rosenblatt Securities increased their target price on Extreme Networks from $20.00 to $25.00 and gave the company a "buy" rating in a report on Thursday, August 7th. Lake Street Capital raised Extreme Networks from a "hold" rating to a "buy" rating and set a $24.00 target price for the company in a report on Thursday, August 7th. UBS Group increased their target price on Extreme Networks from $15.00 to $21.00 and gave the company a "neutral" rating in a report on Thursday, August 7th. Finally, Needham & Company LLC increased their target price on Extreme Networks from $20.00 to $24.00 and gave the company a "buy" rating in a report on Thursday, August 7th. Five analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $22.92.

Extreme Networks Stock 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 has a market cap of $2.71 billion, a price-to-earnings ratio of -407.00, a PEG ratio of 2.25 and a beta of 1.84. The firm has a fifty day moving average of $20.35 and a 200 day moving average of $16.89.

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

Insider Transactions at Extreme Networks

In other news, CFO Kevin R. Rhodes sold 14,000 shares of the firm's stock in a transaction on Thursday, August 28th. The stock was sold at an average price of $21.52, for a total transaction of $301,280.00. Following the completion of the transaction, the chief financial officer directly owned 126,202 shares in the company, valued at $2,715,867.04. This trade represents a 9.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Edward Meyercord sold 35,725 shares of the stock in a transaction on Friday, August 1st. The shares were sold at an average price of $17.18, for a total value of $613,755.50. Following the completion of the sale, the chief executive officer owned 1,541,282 shares in the company, valued at approximately $26,479,224.76. The trade was a 2.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 139,450 shares of company stock valued at $2,665,768. Corporate insiders own 3.70% of the company's stock.

Institutional Trading of Extreme Networks

Hedge funds have recently modified their holdings of the stock. GAMMA Investing LLC raised its stake in shares of Extreme Networks by 105.6% in the first quarter. GAMMA Investing LLC now owns 3,170 shares of the technology company's stock valued at $42,000 after acquiring an additional 1,628 shares in the last quarter. Byrne Asset Management LLC raised its stake in shares of Extreme Networks by 115.6% in the first quarter. Byrne Asset Management LLC now owns 3,881 shares of the technology company's stock valued at $51,000 after acquiring an additional 2,081 shares in the last quarter. Globeflex Capital L P acquired a new stake in shares of Extreme Networks in the second quarter valued at $102,000. Steward Partners Investment Advisory LLC raised its stake in shares of Extreme Networks by 2,616.2% in the second quarter. Steward Partners Investment Advisory LLC now owns 5,867 shares of the technology company's stock valued at $105,000 after acquiring an additional 5,651 shares in the last quarter. Finally, Trust Co. of Toledo NA OH acquired a new stake in Extreme Networks in the second quarter valued at $169,000. 91.05% of the stock is currently owned by institutional investors and hedge funds.

About Extreme Networks

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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