BlackRock Inc. Invests $674.66 Million in Extreme Networks, Inc. $EXTR

Key Points

• BlackRock acquired a major stake in Extreme Networks during the second quarter, purchasing 20.84 million shares valued at approximately $674.66 million, or 15.94% of the company.
• Extreme Networks reported quarterly EPS of $0.32 and revenue of $338.55 million, exceeding analyst estimates, while revenue increased 10.3% year over year.
• Analyst sentiment remains generally positive, with seven Buy ratings and an average price target of $32.25, although insiders sold 416,825 shares worth approximately $11.72 million over the past three months.

BlackRock Inc. acquired a new stake in Extreme Networks, Inc. (NASDAQ:EXTR - Free Report) during the 2nd quarter, according to its most recent disclosure with the SEC. The fund acquired 20,842,155 shares of the technology company's stock, valued at approximately $674,661,000. BlackRock Inc. owned approximately 15.94% of Extreme Networks at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in EXTR. Caitong International Asset Management Co. Ltd bought a new stake in shares of Extreme Networks in the third quarter valued at about $31,000. Rockefeller Capital Management L.P. increased its holdings 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 buying an additional 1,484 shares during the last quarter. CWM LLC lifted its stake in Extreme Networks by 51.7% in the fourth quarter. CWM LLC now owns 3,179 shares of the technology company's stock valued at $53,000 after acquiring an additional 1,084 shares during the last quarter. Quarry LP lifted its stake in Extreme Networks by 74.9% in the third quarter. Quarry LP now owns 2,610 shares of the technology company's stock valued at $54,000 after acquiring an additional 1,118 shares during the last quarter. Finally, Advisors Asset Management Inc. grew its position in shares of Extreme Networks by 136.8% in the 4th quarter. Advisors Asset Management Inc. now owns 3,221 shares of the technology company's stock valued at $54,000 after acquiring an additional 1,861 shares during the period. 91.05% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In related news, CEO Edward Meyercord sold 50,000 shares of the business's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $29.79, for a total value of $1,489,500.00. Following the completion of the transaction, the chief executive officer owned 1,596,475 shares of the company's stock, valued at $47,558,990.25. The trade was a 3.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Katayoun Motiey sold 30,000 shares of the company's stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $31.03, for a total transaction of $930,900.00. Following the sale, the insider directly owned 120,834 shares of the company's stock, valued at $3,749,479.02. This represents a 19.89% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 416,825 shares of company stock worth $11,716,648. 3.60% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

EXTR has been the subject of a number of research analyst reports. Craig Hallum reiterated a "buy" rating and set a $31.00 price target on shares of Extreme Networks in a report on Thursday, August 6th. Weiss Ratings downgraded Extreme Networks from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, August 17th. Bank of America boosted their target price on Extreme Networks from $28.00 to $33.00 and gave the stock a "buy" rating in a report on Monday, June 8th. UBS Group set a $28.00 price target on Extreme Networks in a research note on Thursday, April 30th. Finally, Needham & Company LLC cut their price target on Extreme Networks from $38.00 to $35.00 and set a "buy" rating for the company in a report on Wednesday, August 5th. Seven investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $32.25.

Extreme Networks Price Performance

NASDAQ:EXTR opened at $23.02 on Monday. Extreme Networks, Inc. has a 52 week low of $13.48 and a 52 week high of $33.73. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.81 and a current ratio of 0.93. The firm's 50-day simple moving average is $29.14 and its 200 day simple moving average is $22.54. The firm has a market cap of $3.00 billion, a price-to-earnings ratio of 74.26, a P/E/G ratio of 1.52 and a beta of 1.79.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last announced its earnings results on Wednesday, August 5th. The technology company reported $0.32 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.29 by $0.03. The firm had revenue of $338.55 million for the quarter, compared to analyst estimates of $332.49 million. Extreme Networks had a net margin of 3.28% and a return on equity of 88.88%. The business's revenue was up 10.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.25 EPS. Extreme Networks has set its FY 2027 guidance at 1.280-1.330 EPS and its Q1 2027 guidance at 0.270-0.290 EPS. As a group, sell-side analysts predict that Extreme Networks, Inc. will post 0.75 earnings per share for the current year.

Extreme Networks 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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