Extreme Networks (NASDAQ:EXTR) Trading 6.5% Higher - Still a Buy?

Key Points

• Shares of Extreme Networks jumped 6.5% to about $19.49 on Tuesday on heavy trading volume (3.31M shares, a 92% increase vs. the average session).
• Analysts are mixed but the consensus is a Moderate Buy with an average price target of $22.67 (six Buys, one Hold, one Sell).
• Extreme beat the quarter with $0.26 EPS vs. $0.24 expected and revenue of $317.9M (+13.8% YoY), and guided FY2026 EPS to $0.98–$1.02.

Shares of Extreme Networks, Inc. (NASDAQ:EXTR - Get Free Report) traded up 6.5% during mid-day trading on Tuesday . The stock traded as high as $19.36 and last traded at $19.4850. 3,312,311 shares were traded during trading, an increase of 92% from the average session volume of 1,727,868 shares. The stock had previously closed at $18.29.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Wall Street Zen raised Extreme Networks from a "buy" rating to a "strong-buy" rating in a report on Saturday, February 28th. Needham & Company LLC decreased their price objective on shares of Extreme Networks from $24.00 to $21.00 and set a "buy" rating on the stock in a research report on Thursday, January 29th. UBS Group reissued a "neutral" rating and issued a $17.00 price objective on shares of Extreme Networks in a research note on Thursday, January 29th. Weiss Ratings downgraded shares of Extreme Networks from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, February 17th. Finally, Rosenblatt Securities restated a "buy" rating and set a $25.00 target price on shares of Extreme Networks in a research report on Thursday, January 29th. Six research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Extreme Networks presently has a consensus rating of "Moderate Buy" and an average price target of $22.67.

Extreme Networks Stock Performance

The company has a quick ratio of 0.80, a current ratio of 0.95 and a debt-to-equity ratio of 1.61. The stock has a fifty day moving average price of $15.17 and a two-hundred day moving average price of $16.62. The company has a market capitalization of $2.58 billion, a price-to-earnings ratio of 274.84, a PEG ratio of 1.90 and a beta of 1.62.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last posted its quarterly earnings data on Wednesday, January 28th. The technology company reported $0.26 EPS for the quarter, topping analysts' consensus estimates of $0.24 by $0.02. Extreme Networks had a return on equity of 75.56% and a net margin of 0.75%.The firm had revenue of $317.93 million during the quarter, compared to analysts' expectations of $312.33 million. During the same quarter last year, the business posted $0.21 EPS. The firm's quarterly revenue was up 13.8% compared to the same quarter last year. Extreme Networks has set its Q3 2026 guidance at 0.230-0.250 EPS and its FY 2026 guidance at 0.980-1.020 EPS. As a group, analysts forecast that Extreme Networks, Inc. will post 0.47 EPS for the current fiscal year.

Insider Buying and Selling at Extreme Networks

In related news, CEO Edward Meyercord sold 50,000 shares of the company's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $15.30, for a total transaction of $765,000.00. Following the transaction, the chief executive officer owned 1,897,270 shares of the company's stock, valued at approximately $29,028,231. This represents a 2.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of EXTR. Alyeska Investment Group L.P. boosted its holdings in shares of Extreme Networks by 301.9% during the fourth quarter. Alyeska Investment Group L.P. now owns 2,971,718 shares of the technology company's stock worth $49,479,000 after purchasing an additional 2,232,373 shares during the last quarter. Jain Global LLC purchased a new position in Extreme Networks during the fourth quarter worth about $17,361,000. Millennium Management LLC boosted its stake in Extreme Networks by 163.0% in the 1st quarter. Millennium Management LLC now owns 1,260,362 shares of the technology company's stock worth $16,675,000 after buying an additional 781,103 shares during the last quarter. Southernsun Asset Management LLC grew its holdings in Extreme Networks by 46.9% in the 4th quarter. Southernsun Asset Management LLC now owns 1,970,886 shares of the technology company's stock valued at $32,815,000 after buying an additional 629,486 shares during the period. Finally, Cubist Systematic Strategies LLC purchased a new stake in Extreme Networks in the 2nd quarter valued at about $11,265,000. 91.05% of the stock is currently owned by institutional investors and hedge funds.

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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