First Trust Advisors LP Cuts Stake in Extreme Networks, Inc. $EXTR

Key Points

• First Trust Advisors cut its Extreme Networks stake by 75.5% in the first quarter, selling 232,186 shares and retaining 75,444 shares worth approximately $1.14 million. Institutional investors still own 91.05% of the company.
• Extreme Networks exceeded quarterly expectations with adjusted EPS of $0.32 versus the $0.29 consensus and revenue of $338.55 million, up 10.3% year over year. Management provided fiscal 2027 EPS guidance of $1.28–$1.33.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and average price target of $32.25, although insider selling and valuation concerns remain potential headwinds.

First Trust Advisors LP lessened its stake in shares of Extreme Networks, Inc. (NASDAQ:EXTR - Free Report) by 75.5% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 75,444 shares of the technology company's stock after selling 232,186 shares during the period. First Trust Advisors LP owned 0.06% of Extreme Networks worth $1,138,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Alyeska Investment Group L.P. increased its stake in Extreme Networks by 301.9% during the 4th quarter. Alyeska Investment Group L.P. now owns 2,971,718 shares of the technology company's stock worth $49,479,000 after buying an additional 2,232,373 shares in the last quarter. Jain Global LLC acquired a new position in shares of Extreme Networks during the fourth quarter valued at approximately $17,361,000. SEB Asset Management AB purchased a new position in shares of Extreme Networks in the first quarter valued at approximately $12,192,000. Millennium Management LLC lifted its position in shares of Extreme Networks by 163.0% in the first quarter. Millennium Management LLC now owns 1,260,362 shares of the technology company's stock valued at $16,675,000 after acquiring an additional 781,103 shares in the last quarter. Finally, Southernsun Asset Management LLC boosted its stake in shares of Extreme Networks by 46.9% in the fourth quarter. Southernsun Asset Management LLC now owns 1,970,886 shares of the technology company's stock worth $32,815,000 after acquiring an additional 629,486 shares during the last quarter. 91.05% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research analysts recently commented on EXTR shares. Weiss Ratings raised Extreme Networks from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, July 6th. Oppenheimer reaffirmed an "outperform" rating on shares of Extreme Networks in a research note on Thursday. Bank of America upped their target price on shares of Extreme Networks from $28.00 to $33.00 and gave the stock a "buy" rating in a report on Monday, June 8th. Lake Street Capital increased their target price on shares of Extreme Networks from $25.00 to $34.00 and gave the company a "buy" rating in a research report on Monday, June 15th. Finally, Wall Street Zen raised shares of Extreme Networks from a "buy" rating to a "strong-buy" rating in a research note on Saturday. Seven research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $32.25.

Insiders Place Their Bets

In other Extreme Networks news, CFO Kevin R. Rhodes sold 35,000 shares of Extreme Networks stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $30.43, for a total value of $1,065,050.00. Following the sale, the chief financial officer owned 151,296 shares in the company, valued at $4,603,937.28. The trade was a 18.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Edward Meyercord sold 100,000 shares of the company's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $26.10, for a total value of $2,610,000.00. Following the completion of the transaction, the chief executive officer directly owned 1,721,902 shares in the company, valued at approximately $44,941,642.20. This trade represents a 5.49% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 422,182 shares of company stock valued at $11,905,205. 3.60% of the stock is currently owned by insiders.

Trending Headlines about Extreme Networks

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

• Positive Sentiment: Strong quarterly results: Extreme Networks reported fiscal Q4 adjusted EPS of $0.32, ahead of the $0.29 consensus estimate, while revenue of $338.55 million exceeded expectations of $332.49 million and increased 10.3% year over year. The company also issued fiscal 2027 EPS guidance of $1.28-$1.33. Extreme Networks Fiscal Q4 Earnings Snapshot
• Positive Sentiment: B. Riley raised its target: B. Riley Financial increased its price target from $28 to $34 and maintained a “buy” rating, signaling substantial potential upside based on its outlook for EXTR. Extreme Networks Price Target Raised at B. Riley Financial
• Positive Sentiment: Rosenblatt remains bullish: Rosenblatt Securities trimmed its target modestly from $39 to $38 but retained a “buy” rating, indicating continued confidence despite the adjustment.
• Neutral Sentiment: Upcoming investor conferences: Extreme Networks will participate in investor conferences during August and September, giving management opportunities to discuss demand, execution, and its financial outlook with investors. Extreme Networks Announces Investor Conferences
• Negative Sentiment: Insider selling pressured the shares: Reports of insider sales prompted a gap lower, raising concerns about management or other insiders reducing exposure after the stock’s previous rally. Extreme Networks Shares Gap Down on Insider Selling
• Negative Sentiment: Valuation concerns remain: One analysis argues that Extreme Networks is still overvalued even after its pullback. With a high earnings multiple and only modest profitability, investors may be taking profits despite the earnings beat. Extreme Networks Q4 Fine Print But Still Overvalued After the Pullback
• Negative Sentiment: Mixed target revisions: Needham lowered its price target to $35, while the differing analyst revisions suggest expectations remain positive but are not uniformly strengthening. Extreme Networks Price Target Lowered at Needham

Extreme Networks Price Performance

EXTR stock opened at $23.97 on Monday. Extreme Networks, Inc. has a 1 year low of $13.48 and a 1 year high of $33.73. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.93 and a quick ratio of 0.81. The firm has a market capitalization of $3.13 billion, a PE ratio of 77.33, a price-to-earnings-growth ratio of 1.46 and a beta of 1.79. The business has a 50 day simple moving average of $30.27 and a 200-day simple moving average of $21.92.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last issued its earnings results on Wednesday, August 5th. The technology company reported $0.32 EPS for the quarter, topping analysts' consensus estimates of $0.29 by $0.03. The company had revenue of $338.55 million for the quarter, compared to the consensus estimate of $332.49 million. Extreme Networks had a net margin of 3.28% and a return on equity of 88.88%. Extreme Networks's quarterly revenue was up 10.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.25 earnings per share. 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. Equities research analysts anticipate that Extreme Networks, Inc. will post 0.81 earnings per share for the current fiscal year.

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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