Needham & Company LLC Forecasts Strong Price Appreciation for Extreme Networks (NASDAQ:EXTR) Stock

Key Points

• Needham & Company raised its price target on Extreme Networks from $26 to $38 and reiterated a buy rating, implying about 24.84% upside from the prior close.
• Other analysts have also turned positive, with several firms lifting targets; overall, Extreme Networks has a Moderate Buy consensus and an average target price of $32.83.
• The company reported strong quarterly results, beating EPS and revenue estimates, while revenue rose 11.4% year over year; shares were trading around $30.44 near the report.

Extreme Networks (NASDAQ:EXTR - Get Free Report) had its price objective lifted by investment analysts at Needham & Company LLC from $26.00 to $38.00 in a report issued on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the technology company's stock. Needham & Company LLC's target price points to a potential upside of 24.84% from the stock's previous close.

Several other research analysts have also commented on the company. Bank of America lifted their price target on Extreme Networks from $28.00 to $33.00 and gave the stock a "buy" rating in a report on Monday, June 8th. B. Riley Financial reissued a "buy" rating on shares of Extreme Networks in a report on Thursday, April 30th. UBS Group set a $28.00 price objective on shares of Extreme Networks in a report on Thursday, April 30th. Rosenblatt Securities raised their price objective on shares of Extreme Networks from $29.00 to $39.00 and gave the stock a "buy" rating in a research report on Thursday, June 11th. Finally, Weiss Ratings raised shares of Extreme Networks from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, July 6th. Six equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $32.83.

Extreme Networks Trading Up 0.5%

Shares of Extreme Networks stock opened at $30.44 on Wednesday. The stock has a market cap of $3.98 billion, a P/E ratio of 253.67, a P/E/G ratio of 1.86 and a beta of 1.77. The stock's 50 day simple moving average is $29.27 and its 200-day simple moving average is $20.75. Extreme Networks 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 1.89, a current ratio of 0.91 and a quick ratio of 0.78.

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

Insiders Place Their Bets

In other Extreme Networks news, CEO Edward Meyercord sold 100,000 shares of the company's stock in a transaction dated 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 transaction, the chief executive officer owned 1,721,902 shares of the company's stock, valued at $44,941,642.20. This represents a 5.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Katayoun Motiey sold 30,000 shares of the stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $31.03, for a total transaction of $930,900.00. Following the transaction, the insider directly owned 120,834 shares of the company's stock, valued at approximately $3,749,479.02. This trade represents a 19.89% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 592,182 shares of company stock worth $15,423,978. Corporate insiders own 3.60% of the company's stock.

Hedge Funds Weigh In On Extreme Networks

Several large investors have recently made changes to their positions in the stock. Alyeska Investment Group L.P. increased its holdings in Extreme Networks by 301.9% in the 4th quarter. Alyeska Investment Group L.P. now owns 2,971,718 shares of the technology company's stock valued at $49,479,000 after purchasing an additional 2,232,373 shares during the last quarter. Jain Global LLC purchased a new stake in Extreme Networks in the fourth quarter valued at approximately $17,361,000. SEB Asset Management AB acquired a new position in Extreme Networks during the first quarter worth $12,192,000. Millennium Management LLC boosted its position in shares of Extreme Networks by 163.0% during the first quarter. Millennium Management LLC now owns 1,260,362 shares of the technology company's stock worth $16,675,000 after buying an additional 781,103 shares during the period. Finally, Glenmede Trust Co. NA purchased a new position in shares of Extreme Networks during the first quarter worth $10,129,000. 91.05% of the stock is currently owned by institutional investors and hedge funds.

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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