Hsbc Holdings PLC Reduces Stock Position in Extreme Networks, Inc. $EXTR

Key Points

• Hsbc Holdings PLC has significantly reduced its stake in Extreme Networks by 69.5%, now owning only 28,328 shares valued at approximately $358,000.
• Multiple institutional investors have increased their stakes in Extreme Networks, with GAMMA Investing LLC boosting its holdings by 2,619.8% during the first quarter.
• Recent analyst upgrades have seen Extreme Networks' stock rated as a "buy" or "strong-buy" by several firms, adjusting target prices notably to the range of $21.00 to $25.00.

Hsbc Holdings PLC lowered its stake in shares of Extreme Networks, Inc. (NASDAQ:EXTR - Free Report) by 69.5% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 28,328 shares of the technology company's stock after selling 64,677 shares during the period. Hsbc Holdings PLC's holdings in Extreme Networks were worth $358,000 at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in EXTR. Envestnet Asset Management Inc. raised its position in shares of Extreme Networks by 27.2% in the fourth quarter. Envestnet Asset Management Inc. now owns 21,543 shares of the technology company's stock worth $361,000 after buying an additional 4,610 shares in the last quarter. Principal Financial Group Inc. raised its position in shares of Extreme Networks by 3.0% in the first quarter. Principal Financial Group Inc. now owns 661,779 shares of the technology company's stock worth $8,755,000 after buying an additional 19,248 shares in the last quarter. GAMMA Investing LLC raised its position in shares of Extreme Networks by 2,619.8% in the first quarter. GAMMA Investing LLC now owns 41,939 shares of the technology company's stock worth $555,000 after buying an additional 40,397 shares in the last quarter. Edgestream Partners L.P. raised its position in shares of Extreme Networks by 76.9% in the first quarter. Edgestream Partners L.P. now owns 327,356 shares of the technology company's stock worth $4,331,000 after buying an additional 142,332 shares in the last quarter. Finally, Impax Asset Management Group plc raised its position in shares of Extreme Networks by 41.5% in the first quarter. Impax Asset Management Group plc now owns 955,178 shares of the technology company's stock worth $12,637,000 after buying an additional 280,000 shares in the last quarter. Hedge funds and other institutional investors own 91.05% of the company's stock.

Insider Buying and Selling

In other news, CFO Kevin R. Rhodes sold 14,000 shares of the firm's stock in a transaction dated Thursday, August 28th. The stock was sold at an average price of $21.52, for a total transaction of $301,280.00. Following the transaction, the chief financial officer directly owned 126,202 shares of the company's stock, valued at approximately $2,715,867.04. This trade represents a 9.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Raj Khanna sold 15,000 shares of the firm's stock in a transaction dated Thursday, August 21st. The shares were sold at an average price of $19.91, for a total value of $298,650.00. Following the transaction, the director directly owned 216,708 shares in the company, valued at $4,314,656.28. This trade represents a 6.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 149,450 shares of company stock valued at $2,838,234 over the last three months. 3.70% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on EXTR shares. Lake Street Capital upgraded Extreme Networks from a "hold" rating to a "buy" rating and set a $24.00 price objective on the stock in a research report on Thursday, August 7th. UBS Group increased their price objective on Extreme Networks from $15.00 to $21.00 and gave the stock a "neutral" rating in a research report on Thursday, August 7th. Wall Street Zen upgraded Extreme Networks from a "buy" rating to a "strong-buy" rating in a research report on Thursday, May 22nd. Needham & Company LLC increased their price objective on Extreme Networks from $20.00 to $24.00 and gave the stock a "buy" rating in a research report on Thursday, August 7th. Finally, Rosenblatt Securities increased their target price on Extreme Networks from $20.00 to $25.00 and gave the company a "buy" rating in a research note on Thursday, August 7th. Five research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $22.92.

Extreme Networks Price Performance

EXTR traded down $0.75 during trading on Friday, reaching $21.70. The stock had a trading volume of 2,149,629 shares, compared to its average volume of 1,391,026. The stock has a market cap of $2.89 billion, a PE ratio of -434.00, a PEG ratio of 2.27 and a beta of 1.84. The company has a debt-to-equity ratio of 2.50, a quick ratio of 0.74 and a current ratio of 0.91. Extreme Networks, Inc. has a one year low of $10.10 and a one year high of $22.63. The business has a 50-day moving average of $19.16 and a 200-day moving average of $16.22.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last released its earnings results on Wednesday, August 6th. The technology company reported $0.25 EPS for the quarter, beating analysts' consensus estimates of $0.22 by $0.03. Extreme Networks had a positive return on equity of 82.47% and a negative net margin of 0.65%.The business had revenue of $307.00 million for the quarter, compared to analysts' expectations of $299.88 million. During the same quarter in the prior year, the firm earned ($0.08) earnings per share. The firm's revenue was up 19.6% on a year-over-year basis. As a group, equities research analysts anticipate that Extreme Networks, Inc. will post 0.31 EPS for the current fiscal year.

About Extreme Networks

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.