Extreme Networks (NASDAQ:EXTR) Given New $24.00 Price Target at Needham & Company LLC

Key Points

• Needham & Company LLC has raised its price target for Extreme Networks from $20.00 to $24.00, indicating a potential upside of 19.11% from the stock's previous closing price.
• Extreme Networks received a "strong-buy" rating upgrade from Wall Street Zen, while various other analysts have issued mixed ratings, including one lowering the target price to $15.00.
• Extreme Networks has shown strong institutional interest, with 91.05% of its shares owned by institutional investors and several firms increasing their positions significantly in recent months.

Extreme Networks (NASDAQ:EXTR - Get Free Report) had its target price hoisted by equities research analysts at Needham & Company LLC from $20.00 to $24.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm presently has a "buy" rating on the technology company's stock. Needham & Company LLC's price target would indicate a potential upside of 20.30% from the company's current price.

Other equities research analysts have also issued reports about the stock. Lake Street Capital lowered their target price on shares of Extreme Networks from $16.00 to $15.00 and set a "hold" rating on the stock in a research note on Thursday, May 1st. UBS Group lowered their target price on shares of Extreme Networks from $16.50 to $15.00 and set a "neutral" rating on the stock in a research note on Thursday, May 1st. Wall Street Zen raised shares of Extreme Networks from a "buy" rating to a "strong-buy" rating in a research note on Thursday, May 22nd. Finally, Rosenblatt Securities increased their target price on shares of Extreme Networks from $20.00 to $25.00 and gave the stock a "buy" rating in a research note on Thursday. One investment analyst has rated the stock with a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus price target of $22.92.

Extreme Networks Stock Performance

EXTR traded up $0.01 during midday trading on Thursday, hitting $19.95. 1,698,452 shares of the company were exchanged, compared to its average volume of 1,221,914. The company's 50 day simple moving average is $17.55 and its 200 day simple moving average is $15.53. The firm has a market capitalization of $2.66 billion, a price-to-earnings ratio of -399.00, a price-to-earnings-growth ratio of 2.35 and a beta of 1.75. The company has a current ratio of 0.91, a quick ratio of 0.70 and a debt-to-equity ratio of 2.50. Extreme Networks has a 1-year low of $10.10 and a 1-year high of $21.34.

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

Insider Transactions at Extreme Networks

In related news, CEO Edward Meyercord sold 35,725 shares of the firm's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $17.18, for a total value of $613,755.50. Following the transaction, the chief executive officer directly owned 1,541,282 shares of the company's stock, valued at approximately $26,479,224.76. This trade represents a 2.27% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Raj Khanna sold 7,973 shares of the firm's stock in a transaction that occurred on Monday, June 23rd. The stock was sold at an average price of $17.20, for a total transaction of $137,135.60. Following the completion of the transaction, the director directly owned 233,735 shares in the company, valued at $4,020,242. This trade represents a 3.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 81,450 shares of company stock worth $1,436,774 over the last ninety days. 3.70% of the stock is currently owned by corporate insiders.

Institutional Trading of Extreme Networks

Several institutional investors have recently made changes to their positions in EXTR. Barrow Hanley Mewhinney & Strauss LLC raised its position in shares of Extreme Networks by 397,835.5% during the 4th quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 2,276,191 shares of the technology company's stock valued at $38,103,000 after buying an additional 2,275,619 shares during the period. Nuveen LLC purchased a new stake in shares of Extreme Networks during the 1st quarter valued at approximately $14,147,000. LMR Partners LLP purchased a new stake in Extreme Networks in the fourth quarter valued at approximately $16,573,000. JPMorgan Chase & Co. raised its position in Extreme Networks by 312.1% in the fourth quarter. JPMorgan Chase & Co. now owns 1,199,399 shares of the technology company's stock valued at $20,078,000 after purchasing an additional 908,336 shares during the period. Finally, Penn Capital Management Company LLC purchased a new stake in Extreme Networks in the fourth quarter valued at approximately $14,229,000. Hedge funds and other institutional investors own 91.05% of the company's stock.

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.