Extreme Networks (NASDAQ:EXTR) Sets New 12-Month High - Here's Why

Key Points

• Extreme Networks shares hit a new 52-week high, trading as high as $24.22 amid recent momentum in the stock.
• Several analysts remain bullish after the company’s earnings beat, with a consensus rating of Moderate Buy and an average price target of $25.50. Needham, UBS, Lake Street, B. Riley, and Rosenblatt all maintained or raised positive views.
• The company reported quarterly EPS of $0.26, topping estimates, on revenue of $316.87 million, up 11.4% year over year. Despite the strong results, executives and directors have recently sold shares, while institutions continue to own the vast majority of the stock.

Shares of Extreme Networks, Inc. (NASDAQ:EXTR - Get Free Report) reached a new 52-week high during mid-day trading on Monday . The company traded as high as $24.22 and last traded at $24.2640, with a volume of 59359 shares traded. The stock had previously closed at $24.04.

Analyst Ratings Changes

EXTR has been the subject of several recent research reports. Lake Street Capital restated a "buy" rating and issued a $25.00 price target on shares of Extreme Networks in a research report on Thursday, April 30th. UBS Group set a $28.00 price target on shares of Extreme Networks in a research report on Thursday, April 30th. B. Riley Financial restated a "buy" rating on shares of Extreme Networks in a research report on Thursday, April 30th. Needham & Company LLC upped their price target on shares of Extreme Networks from $21.00 to $26.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Finally, Rosenblatt Securities restated a "buy" rating and issued a $25.00 price target on shares of Extreme Networks in a research report on Thursday, January 29th. Six analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $25.50.

Extreme Networks Stock Performance

The company's 50-day simple moving average is $16.42 and its 200-day simple moving average is $16.60. The company has a current ratio of 0.91, a quick ratio of 0.78 and a debt-to-equity ratio of 1.89. The stock has a market capitalization of $3.17 billion, a price-to-earnings ratio of 200.46, a PEG ratio of 2.27 and a beta of 1.77.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The technology company reported $0.26 EPS for the quarter, beating analysts' consensus estimates of $0.24 by $0.02. Extreme Networks had a net margin of 1.30% and a return on equity of 81.88%. The company had revenue of $316.87 million for the quarter, compared to analyst estimates of $311.48 million. During the same period in the prior year, the firm posted $0.21 EPS. The company's quarterly revenue was up 11.4% on a year-over-year basis. Extreme Networks has set its Q4 2026 guidance at 0.280-0.300 EPS. On average, analysts expect that Extreme Networks, Inc. will post 0.53 EPS for the current year.

Insider Activity

In other news, CEO Edward Meyercord sold 21,209 shares of the company's stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $23.12, for a total value of $490,352.08. Following the sale, the chief executive officer directly owned 1,797,270 shares of the company's stock, valued at approximately $41,552,882.40. This represents a 1.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Edward H. Kennedy sold 50,000 shares of the company's stock in a transaction on Monday, May 4th. The shares were sold at an average price of $22.86, for a total transaction of $1,143,000.00. Following the completion of the sale, the director directly owned 576,045 shares in the company, valued at approximately $13,168,388.70. This represents a 7.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 270,000 shares of company stock valued at $5,773,273. 3.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Extreme Networks

Institutional investors have recently modified their holdings of the company. Caitong International Asset Management Co. Ltd bought a new stake in shares of Extreme Networks in the 3rd quarter valued at $31,000. Rockefeller Capital Management L.P. boosted its stake in Extreme Networks by 313.7% during the fourth quarter. Rockefeller Capital Management L.P. now owns 1,957 shares of the technology company's stock worth $33,000 after acquiring an additional 1,484 shares in the last quarter. CWM LLC boosted its stake in Extreme Networks by 44.8% during the third quarter. CWM LLC now owns 2,095 shares of the technology company's stock worth $43,000 after acquiring an additional 648 shares in the last quarter. Farther Finance Advisors LLC boosted its stake in Extreme Networks by 85.4% during the third quarter. Farther Finance Advisors LLC now owns 2,201 shares of the technology company's stock worth $45,000 after acquiring an additional 1,014 shares in the last quarter. Finally, Quarry LP boosted its stake in Extreme Networks by 74.9% during the third quarter. Quarry LP now owns 2,610 shares of the technology company's stock worth $54,000 after acquiring an additional 1,118 shares in the last quarter. 91.05% of the stock is owned by institutional investors.

Extreme Networks Company Profile

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.

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