Extreme Networks Sees Unusually High Options Volume (NASDAQ:EXTR)

Key Points

• Options activity surged: Investors bought 3,027 call options on Extreme Networks, 739% above its average daily call-option volume.
• Shares rose 14.4% to $24.08 in Friday trading. The company also reported quarterly EPS of $0.33, beating estimates by $0.05, while revenue increased 10% year over year to $341.09 million.
• Analysts have a consensus “Moderate Buy” rating on the stock, with an average price target of $33.86.

Extreme Networks, Inc. (NASDAQ:EXTR - Get Free Report) was the recipient of some unusual options trading on Friday. Investors acquired 3,027 call options on the stock. This is an increase of 739% compared to the average daily volume of 361 call options.

Analysts Set New Price Targets

EXTR has been the subject of several recent analyst reports. B. Riley Financial upped their price objective on Extreme Networks from $28.00 to $34.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Zacks Research upgraded Extreme Networks from a "hold" rating to a "strong-buy" rating in a research report on Monday. Rosenblatt Securities reiterated a "buy" rating and issued a $38.00 target price on shares of Extreme Networks in a research report on Thursday, October 29th. Oppenheimer reissued an "outperform" rating on shares of Extreme Networks in a research note on Thursday, August 6th. Finally, Needham & Company LLC reissued a "buy" rating and issued a $35.00 target price on shares of Extreme Networks in a report on Wednesday, October 28th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, Extreme Networks presently has a consensus rating of "Moderate Buy" and a consensus price target of $33.86.

Extreme Networks Trading Up 14.4%

EXTR traded up $3.03 during midday trading on Friday, hitting $24.08. 1,669,001 shares of the company were exchanged, compared to its average volume of 1,910,476. The firm's 50 day moving average price is $22.45 and its 200-day moving average price is $22.11. The company has a quick ratio of 0.87, a current ratio of 1.02 and a debt-to-equity ratio of 2.27. The firm has a market capitalization of $3.16 billion, a P/E ratio of 61.78, a P/E/G ratio of 1.47 and a beta of 1.81. Extreme Networks has a 1-year low of $13.48 and a 1-year high of $33.73.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last released its earnings results on Wednesday, October 28th. The technology company reported $0.33 earnings per share for the quarter, beating analysts' consensus estimates of $0.28 by $0.05. Extreme Networks had a net margin of 3.99% and a return on equity of 102.41%. The business had revenue of $341.09 million during the quarter, compared to the consensus estimate of $336.75 million. During the same quarter in the prior year, the firm posted $0.22 EPS. The company's revenue for the quarter was up 10.0% compared to the same quarter last year. As a group, equities analysts forecast that Extreme Networks will post 0.86 EPS for the current fiscal year.

Insider Transactions at Extreme Networks

In other Extreme Networks news, CFO Kevin R. Rhodes sold 21,825 shares of the business's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $22.30, for a total transaction of $486,697.50. Following the completion of the transaction, the chief financial officer directly owned 196,803 shares in the company, valued at $4,388,706.90. The trade was a 9.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Edward Meyercord sold 50,000 shares of the company's stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $21.77, for a total value of $1,088,500.00. Following the sale, the chief executive officer owned 1,710,097 shares of the company's stock, valued at $37,228,811.69. The trade was a 2.84% 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. 3.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Extreme Networks

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. First Bank & Trust increased its position in shares of Extreme Networks by 2.4% during the second quarter. First Bank & Trust now owns 13,191 shares of the technology company's stock worth $427,000 after acquiring an additional 306 shares in the last quarter. GAMMA Investing LLC lifted its holdings in Extreme Networks by 13.2% during the second quarter. GAMMA Investing LLC now owns 4,001 shares of the technology company's stock worth $130,000 after acquiring an additional 465 shares during the period. CoreCap Advisors LLC raised its stake in shares of Extreme Networks by 72.3% during the 3rd quarter. CoreCap Advisors LLC now owns 1,201 shares of the technology company's stock worth $26,000 after purchasing an additional 504 shares during the period. Allspring Global Investments Holdings LLC raised its position in Extreme Networks by 6.4% in the third quarter. Allspring Global Investments Holdings LLC now owns 9,182 shares of the technology company's stock worth $202,000 after acquiring an additional 549 shares during the period. Finally, Verdence Capital Advisors LLC lifted its stake in Extreme Networks by 2.3% in the third quarter. Verdence Capital Advisors LLC now owns 25,166 shares of the technology company's stock valued at $540,000 after purchasing an additional 561 shares during the last quarter. 91.05% of the stock is owned by institutional investors.

Extreme Networks Company Profile

Extreme Networks, Inc develops networking solutions that help organizations connect, manage and secure users, devices and applications across campus, data center and distributed environments. Its portfolio includes wired and wireless network infrastructure, Ethernet switches, access points, software-defined wide-area networking (SD-WAN), network access control and cloud-based network management.

The company's ExtremeCloud platform supports centralized monitoring, configuration, analytics and automation for network operations.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.