Extreme Networks (NASDAQ:EXTR) Stock Price Up 3.3% - Here's Why

Shares of Extreme Networks, Inc. (NASDAQ:EXTR - Get Free Report) were up 3.3% during mid-day trading on Monday . The company traded as high as $12.94 and last traded at $12.91. Approximately 571,515 shares were traded during mid-day trading, a decline of 61% from the average daily volume of 1,453,508 shares. The stock had previously closed at $12.49.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on EXTR. Lake Street Capital decreased their target price on shares of Extreme Networks from $16.00 to $15.00 and set a "hold" rating on the stock in a research report on Thursday. Needham & Company LLC reiterated a "buy" rating and issued a $20.00 price objective on shares of Extreme Networks in a research note on Wednesday. Rosenblatt Securities restated a "buy" rating and set a $18.00 target price on shares of Extreme Networks in a research report on Thursday. Finally, UBS Group decreased their price target on Extreme Networks from $16.50 to $15.00 and set a "neutral" rating on the stock in a research note on Thursday. Two investment analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to MarketBeat.com, Extreme Networks has an average rating of "Moderate Buy" and an average target price of $18.58.

Extreme Networks Price Performance

The stock has a fifty day moving average of $13.34 and a two-hundred day moving average of $15.35. The company has a current ratio of 0.93, a quick ratio of 0.68 and a debt-to-equity ratio of 3.34. The stock has a market capitalization of $1.86 billion, a price-to-earnings ratio of -14.88, a PEG ratio of 3.06 and a beta of 1.57.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last released its quarterly earnings results on Wednesday, April 30th. The technology company reported $0.21 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.19 by $0.02. The business had revenue of $284.51 million during the quarter, compared to analysts' expectations of $280.32 million. Extreme Networks had a negative return on equity of 110.86% and a negative net margin of 11.98%. The firm's revenue for the quarter was up 34.8% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.19) earnings per share. As a group, equities research analysts forecast that Extreme Networks, Inc. will post 0.31 earnings per share for the current year.

Extreme Networks declared that its board has authorized a stock repurchase program on Tuesday, February 18th that authorizes the company to repurchase $200.00 million in shares. This repurchase authorization authorizes the technology company to buy up to 9.2% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other news, CEO Edward Meyercord sold 35,725 shares of the business's stock in a transaction on Thursday, May 1st. The stock was sold at an average price of $13.73, for a total transaction of $490,504.25. Following the completion of the sale, the chief executive officer now owns 1,510,719 shares in the company, valued at $20,742,171.87. The trade was a 2.31 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 3.70% of the company's stock.

Institutional Trading of Extreme Networks

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its position in shares of Extreme Networks by 4.0% during the 4th quarter. Vanguard Group Inc. now owns 17,919,069 shares of the technology company's stock worth $299,965,000 after buying an additional 690,262 shares during the period. Victory Capital Management Inc. raised its position in shares of Extreme Networks by 13.9% during the 1st quarter. Victory Capital Management Inc. now owns 5,012,386 shares of the technology company's stock valued at $66,314,000 after acquiring an additional 611,462 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of Extreme Networks by 1.7% in the 4th quarter. Geode Capital Management LLC now owns 3,068,854 shares of the technology company's stock valued at $51,385,000 after purchasing an additional 49,888 shares during the period. American Century Companies Inc. boosted its position in shares of Extreme Networks by 11.4% in the 4th quarter. American Century Companies Inc. now owns 2,837,171 shares of the technology company's stock worth $47,494,000 after purchasing an additional 290,184 shares during the last quarter. Finally, Trigran Investments Inc. grew its stake in shares of Extreme Networks by 4.1% during the fourth quarter. Trigran Investments Inc. now owns 2,384,325 shares of the technology company's stock worth $39,914,000 after purchasing an additional 94,508 shares during the period. 91.05% of the stock is owned by 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.