UBS Group AG Trims Position in Extreme Networks, Inc. $EXTR

Key Points

• UBS Group AG cut its stake in Extreme Networks by 34.5% in the fourth quarter, though the firm still held 127,772 shares valued at about $2.13 million at the end of the period.
• Extreme Networks beat quarterly expectations, reporting $0.26 EPS on revenue of $316.87 million, both ahead of estimates, and revenue rose 11.4% year over year.
• Insider selling has been notable, including sales by Director Kathleen M. Holmgren and CEO Edward Meyercord, while analysts remain mostly positive with a consensus rating of “Moderate Buy” and an average price target of $25.50.

UBS Group AG lessened its position in shares of Extreme Networks, Inc. (NASDAQ:EXTR - Free Report) by 34.5% in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 127,772 shares of the technology company's stock after selling 67,441 shares during the quarter. UBS Group AG owned 0.10% of Extreme Networks worth $2,127,000 at the end of the most recent reporting period.

Several other hedge funds have also bought and sold shares of the stock. Envestnet Asset Management Inc. grew its holdings in Extreme Networks by 3.1% during the third quarter. Envestnet Asset Management Inc. now owns 22,783 shares of the technology company's stock valued at $470,000 after purchasing an additional 683 shares during the period. Arizona State Retirement System lifted its holdings in Extreme Networks by 1.8% during the third quarter. Arizona State Retirement System now owns 39,405 shares of the technology company's stock valued at $814,000 after purchasing an additional 685 shares in the last quarter. CWM LLC lifted its holdings in Extreme Networks by 51.7% during the fourth quarter. CWM LLC now owns 3,179 shares of the technology company's stock valued at $53,000 after purchasing an additional 1,084 shares in the last quarter. Quarry LP lifted its holdings in Extreme Networks by 74.9% during the third quarter. Quarry LP now owns 2,610 shares of the technology company's stock valued at $54,000 after purchasing an additional 1,118 shares in the last quarter. Finally, Amundi lifted its holdings in Extreme Networks by 3.3% during the third quarter. Amundi now owns 41,571 shares of the technology company's stock valued at $838,000 after purchasing an additional 1,311 shares in the last quarter. Institutional investors own 91.05% of the company's stock.

Extreme Networks Price Performance

Shares of Extreme Networks stock opened at $26.67 on Thursday. The stock has a 50 day moving average of $19.29 and a 200 day moving average of $17.10. Extreme Networks, Inc. has a 12 month low of $13.48 and a 12 month high of $27.28. The firm has a market cap of $3.49 billion, a PE ratio of 222.25, a PEG ratio of 2.55 and a beta of 1.77. The company has a current ratio of 0.91, a quick ratio of 0.78 and a debt-to-equity ratio of 1.89.

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

Insiders Place Their Bets

In other news, Director Kathleen M. Holmgren sold 19,521 shares of the firm's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $24.78, for a total value of $483,730.38. Following the completion of the sale, the director directly owned 219,308 shares of the company's stock, valued at $5,434,452.24. This trade represents a 8.17% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Edward Meyercord sold 21,209 shares of the firm's stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $23.12, for a total value of $490,352.08. Following the completion of the sale, the chief executive officer directly owned 1,797,270 shares of the company's stock, valued at $41,552,882.40. The trade was a 1.17% decrease in their ownership of the stock. 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 three months, insiders sold 297,182 shares of company stock worth $6,448,528. 3.60% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several brokerages have weighed in on EXTR. UBS Group set a $28.00 price target on shares of Extreme Networks in a report on Thursday, April 30th. Lake Street Capital reiterated a "buy" rating and set a $25.00 target price on shares of Extreme Networks in a research report on Thursday, April 30th. Rosenblatt Securities reiterated a "buy" rating and set a $25.00 target price on shares of Extreme Networks in a research report on Thursday, January 29th. Needham & Company LLC increased their target price on Extreme Networks from $21.00 to $26.00 and gave the stock a "buy" rating in a research report on Thursday, April 30th. Finally, B. Riley Financial reiterated a "buy" rating on shares of Extreme Networks in a research report on Thursday, April 30th. Six investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average 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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