Extreme Networks, Inc. $EXTR Stock: CenterBook Partners LP Raises Stake

Key Points

• CenterBook Partners increased its stake by 95.9% in the third quarter, adding 97,791 shares to reach 199,728 shares valued at about $4.28 million. Institutional investors and hedge funds own 91.05% of Extreme Networks’ shares.
• Extreme Networks reportedly is exploring a sale, with Cisco, Fortinet and NetApp mentioned as potential interested parties; no offer or transaction has been confirmed.
• The company beat quarterly earnings and revenue estimates, with revenue up 10% year over year. Analysts’ consensus rating is Moderate Buy, with an average price target of $33.86.

CenterBook Partners LP raised its position in shares of Extreme Networks, Inc. (NASDAQ:EXTR - Free Report) by 95.9% in the third quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 199,728 shares of the technology company's stock after purchasing an additional 97,791 shares during the period. CenterBook Partners LP owned 0.15% of Extreme Networks worth $4,284,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the company. First Bank & Trust grew its position in Extreme Networks by 2.4% in the 2nd quarter. First Bank & Trust now owns 13,191 shares of the technology company's stock worth $427,000 after purchasing an additional 306 shares during the last quarter. GAMMA Investing LLC raised its holdings in shares of Extreme Networks by 13.2% during the second quarter. GAMMA Investing LLC now owns 4,001 shares of the technology company's stock valued at $130,000 after buying an additional 465 shares during the last quarter. CoreCap Advisors LLC raised its holdings in shares of Extreme Networks by 72.3% during the third quarter. CoreCap Advisors LLC now owns 1,201 shares of the technology company's stock valued at $26,000 after buying an additional 504 shares during the last quarter. Verdence Capital Advisors LLC boosted its position in shares of Extreme Networks by 2.3% during the third quarter. Verdence Capital Advisors LLC now owns 25,166 shares of the technology company's stock worth $540,000 after buying an additional 561 shares during the period. Finally, PNC Financial Services Group Inc. boosted its position in shares of Extreme Networks by 7.2% during the first quarter. PNC Financial Services Group Inc. now owns 11,001 shares of the technology company's stock worth $166,000 after buying an additional 735 shares during the period. 91.05% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Extreme Networks

Here are the key news stories impacting Extreme Networks this week:

• Positive Sentiment: Sale exploration and buyer interest: Extreme Networks is reportedly considering a sale, with Cisco, Fortinet and NetApp named as possible interested parties. A competitive process could support expectations of a takeover premium, but the reports do not confirm an offer or deal. Reuters report SDxCentral report
• Positive Sentiment: New customer deployment: Bayer 04 Leverkusen selected Extreme Networks for a Wi-Fi 7 deployment, offering a customer win that showcases demand for its networking products. Technology Magazine article
• Neutral Sentiment: Unusually high call-option activity: Investors bought 3,027 call options, versus an average of 361. This signals heightened bullish positioning but does not establish the direction of future trading. Benzinga article
• Neutral Sentiment: Sanctions case resolved: Extreme Networks reached a DOJ non-prosecution agreement related to alleged sanctions violations, and OFAC and DOJ have resolved the matter. The resolution may reduce uncertainty, though the headlines do not specify its terms. JDSupra article
• Neutral Sentiment: Shareholders approved directors and key proposals at the company’s annual meeting; no immediate financial or strategic impact is indicated. TipRanks article

Insider Buying and Selling

In other news, CEO Edward Meyercord sold 50,000 shares of Extreme Networks stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $21.77, for a total transaction of $1,088,500.00. Following the transaction, the chief executive officer directly owned 1,710,097 shares in the company, valued at approximately $37,228,811.69. This trade represents a 2.84% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin R. Rhodes sold 21,825 shares of Extreme Networks stock in a transaction on Friday, August 21st. The shares were sold at an average price of $22.30, for a total value of $486,697.50. Following the transaction, the chief financial officer owned 196,803 shares in the company, valued at approximately $4,388,706.90. This trade represents a 9.98% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 3.20% of the company's stock.

Analysts Set New Price Targets

EXTR has been the subject of a number of recent analyst reports. B. Riley Financial increased their price objective on Extreme Networks from $28.00 to $34.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Craig Hallum reaffirmed a "buy" rating on shares of Extreme Networks in a research note on Thursday, October 29th. Zacks Research upgraded Extreme Networks from a "hold" rating to a "strong-buy" rating in a research report on Monday, November 2nd. Weiss Ratings raised Extreme Networks from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, November 2nd. Finally, Wall Street Zen raised Extreme Networks from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 8th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $33.86.

Extreme Networks Stock Up 14.2%

EXTR stock opened at $24.03 on Friday. The firm's 50-day moving average is $22.46 and its two-hundred day moving average is $22.16. The company has a market capitalization of $3.15 billion, a price-to-earnings ratio of 61.62, a price-to-earnings-growth ratio of 1.55 and a beta of 1.81. Extreme Networks, Inc. has a 52 week low of $13.48 and a 52 week high of $33.73. The company has a current ratio of 1.02, a quick ratio of 0.87 and a debt-to-equity ratio of 2.27.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The technology company reported $0.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.28 by $0.05. Extreme Networks had a net margin of 3.99% and a return on equity of 102.41%. The business had revenue of $341.09 million during the quarter, compared to analysts' expectations of $336.75 million. During the same period last year, the firm posted $0.22 earnings per share. The business's revenue was up 10.0% on a year-over-year basis. On average, analysts forecast that Extreme Networks, Inc. will post 0.86 earnings per share for the current fiscal year.

Extreme Networks Profile

Extreme Networks, Inc develops networking solutions that help organizations connect, manage and secure users, devices and applications across campus, data center and distributed environments. Its portfolio includes wired and wireless network infrastructure, Ethernet switches, access points, software-defined wide-area networking (SD-WAN), network access control and cloud-based network management.

The company's ExtremeCloud platform supports centralized monitoring, configuration, analytics and automation for network operations.

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