Extreme Networks (NASDAQ:EXTR) Hits New 1-Year High on Earnings Beat

Key Points

• Extreme Networks (NASDAQ:EXTR) shares reached a new 52-week high of $20.62, closing at $19.90 with significant trading volume.
• Wall Street analysts have mixed ratings for Extreme Networks, with a consensus of "Moderate Buy" and an average price target of $18.92.
• Insider trading activity shows significant sales, with Director Raj Khanna and CEO Edward Meyercord selling a combined total of shares worth over $649,000 in the recent months.

Extreme Networks, Inc. (NASDAQ:EXTR - Get Free Report)'s share price reached a new 52-week high on Wednesday following a stronger than expected earnings report. The company traded as high as $20.62 and last traded at $19.90, with a volume of 31396 shares trading hands. The stock had previously closed at $17.67.

The technology company reported $0.25 earnings per share for the quarter, topping analysts' consensus estimates of $0.22 by $0.03. The business had revenue of $307.00 million during the quarter, compared to the consensus estimate of $299.88 million. Extreme Networks had a negative net margin of 0.65% and a positive return on equity of 82.47%. The business's quarterly revenue was up 19.6% compared to the same quarter last year. During the same quarter last year, the company earned ($0.08) earnings per share.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. UBS Group upped their target price on shares of Extreme Networks from $15.00 to $21.00 and gave the company a "neutral" rating in a research note on Thursday. Rosenblatt Securities upped their target price on shares of Extreme Networks from $20.00 to $25.00 and gave the company a "buy" rating in a research note on Thursday. 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. Needham & Company LLC upped their target price on shares of Extreme Networks from $20.00 to $24.00 and gave the company a "buy" rating in a research note on Thursday. Finally, 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. One equities research analyst has rated the stock with a hold rating, five have given a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Buy" and a consensus target price of $22.92.

Insider Buying and Selling at Extreme Networks

In related news, CEO Edward Meyercord sold 35,725 shares of the stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $17.18, for a total value of $613,755.50. Following the sale, the chief executive officer owned 1,541,282 shares of the company's stock, valued at $26,479,224.76. This trade represents a 2.27% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Raj Khanna sold 7,973 shares of the business's stock in a transaction dated Monday, June 23rd. The shares were sold at an average price of $17.20, for a total transaction of $137,135.60. Following the transaction, the director directly owned 233,735 shares of the company's stock, valued at $4,020,242. The trade was a 3.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 81,450 shares of company stock valued at $1,436,774. Corporate insiders own 3.70% of the company's stock.

Institutional Investors Weigh In On Extreme Networks

Several large investors have recently made changes to their positions in EXTR. LPL Financial LLC increased its stake in shares of Extreme Networks by 24.1% in the fourth quarter. LPL Financial LLC now owns 34,016 shares of the technology company's stock valued at $569,000 after purchasing an additional 6,601 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Extreme Networks by 1.7% in the fourth quarter. Geode Capital Management LLC now owns 3,068,854 shares of the technology company's stock valued at $51,385,000 after acquiring an additional 49,888 shares in the last quarter. Wells Fargo & Company MN boosted its holdings in shares of Extreme Networks by 32.1% in the fourth quarter. Wells Fargo & Company MN now owns 86,521 shares of the technology company's stock valued at $1,448,000 after acquiring an additional 21,047 shares in the last quarter. Envestnet Asset Management Inc. boosted its holdings in shares of Extreme Networks by 27.2% in the fourth quarter. Envestnet Asset Management Inc. now owns 21,543 shares of the technology company's stock valued at $361,000 after acquiring an additional 4,610 shares in the last quarter. Finally, Russell Investments Group Ltd. boosted its holdings in shares of Extreme Networks by 37.4% in the fourth quarter. Russell Investments Group Ltd. now owns 210,852 shares of the technology company's stock valued at $3,530,000 after acquiring an additional 57,448 shares in the last quarter. Institutional investors and hedge funds own 91.05% of the company's stock.

Extreme Networks Stock Up 0.1%

The firm's fifty day moving average price is $17.55 and its 200-day moving average price is $15.52. 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 has a market capitalization of $2.66 billion, a P/E ratio of -399.00, a PEG ratio of 2.22 and a beta of 1.75.

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.