Penn Capital Management Company LLC Increases Position in Extreme Networks, Inc. $EXTR

Key Points

• Penn Capital Management increased its stake in Extreme Networks by 12.9% in the fourth quarter, buying 111,761 more shares and bringing its total to 981,278 shares worth about $16.4 million.
• Extreme Networks reported stronger-than-expected quarterly results, posting $0.26 EPS versus the $0.24 estimate and revenue of $316.87 million, up 11.4% year over year. The company also guided Q4 2026 EPS at 0.280-0.300.
• The stock has rallied sharply, recently opening at $27.02 near its 52-week high of $27.10. Meanwhile, analysts remain broadly positive with a consensus rating of “Moderate Buy” and an average price target of $25.50.

Penn Capital Management Company LLC lifted its holdings in Extreme Networks, Inc. (NASDAQ:EXTR - Free Report) by 12.9% during the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 981,278 shares of the technology company's stock after buying an additional 111,761 shares during the period. Extreme Networks makes up approximately 1.3% of Penn Capital Management Company LLC's portfolio, making the stock its 26th biggest holding. Penn Capital Management Company LLC owned 0.73% of Extreme Networks worth $16,378,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently modified their holdings of EXTR. Caitong International Asset Management Co. Ltd purchased a new position in shares of Extreme Networks in the 3rd quarter worth approximately $31,000. CWM LLC boosted its stake in shares of Extreme Networks by 51.7% in the 4th quarter. CWM LLC now owns 3,179 shares of the technology company's stock worth $53,000 after buying an additional 1,084 shares during the last quarter. Quarry LP boosted its stake in shares of Extreme Networks by 74.9% in the 3rd quarter. Quarry LP now owns 2,610 shares of the technology company's stock worth $54,000 after buying an additional 1,118 shares during the last quarter. Wealth Enhancement Advisory Services LLC purchased a new position in shares of Extreme Networks in the 3rd quarter worth approximately $70,000. Finally, Quadrant Capital Group LLC purchased a new position in shares of Extreme Networks in the 3rd quarter worth approximately $91,000. Hedge funds and other institutional investors own 91.05% of the company's stock.

Extreme Networks Trading Up 5.5%

NASDAQ:EXTR opened at $27.02 on Wednesday. The company has a current ratio of 0.91, a quick ratio of 0.78 and a debt-to-equity ratio of 1.89. The stock has a market capitalization of $3.53 billion, a PE ratio of 225.17, a price-to-earnings-growth ratio of 2.42 and a beta of 1.77. The firm's 50 day moving average is $19.05 and its 200 day moving average is $17.04. Extreme Networks, Inc. has a 12 month low of $13.48 and a 12 month high of $27.10.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The technology company reported $0.26 EPS for the quarter, topping analysts' consensus estimates of $0.24 by $0.02. The company had revenue of $316.87 million for the quarter, compared to analysts' expectations of $311.48 million. Extreme Networks had a net margin of 1.30% and a return on equity of 81.88%. Extreme Networks's revenue was up 11.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.21 EPS. Extreme Networks has set its Q4 2026 guidance at 0.280-0.300 EPS. Sell-side analysts expect that Extreme Networks, Inc. will post 0.53 earnings per share for the current year.

Insider Buying and Selling

In other Extreme Networks news, insider Katayoun Motiey sold 7,661 shares of the business's stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $25.00, for a total transaction of $191,525.00. Following the sale, the insider owned 183,782 shares of the company's stock, valued at $4,594,550. The trade was a 4.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Edward H. Kennedy sold 50,000 shares of the business's stock in a transaction on Monday, May 4th. The shares were sold at an average price of $22.86, for a total transaction of $1,143,000.00. Following the sale, the director directly owned 576,045 shares in the company, valued at $13,168,388.70. The trade was a 7.99% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 297,182 shares of company stock worth $6,448,528 in the last three months. Insiders own 3.60% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. Rosenblatt Securities restated a "buy" rating and issued a $25.00 target price on shares of Extreme Networks in a research note on Thursday, January 29th. B. Riley Financial restated a "buy" rating on shares of Extreme Networks in a research note on Thursday, April 30th. UBS Group set a $28.00 target price on Extreme Networks in a research note on Thursday, April 30th. Lake Street Capital restated a "buy" rating and issued a $25.00 target price on shares of Extreme Networks in a research note on Thursday, April 30th. Finally, Wall Street Zen raised shares of Extreme Networks from a "buy" rating to a "strong-buy" rating in a report on Sunday. Six investment 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. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $25.50.

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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