UBS Group Forecasts Strong Price Appreciation for Extreme Networks (NASDAQ:EXTR) Stock

Key Points

• UBS Group raised its price target for Extreme Networks from $15.00 to $21.00, indicating a potential upside of 7.47% from the stock's last close.
• Several analysts, including Needham & Company and Lake Street Capital, have recently upgraded their ratings for Extreme Networks, with price targets ranging from $24.00 to $25.00.
• Extreme Networks reported earnings of $0.25 per share for the last quarter, surpassing expectations and showing a 19.6% revenue increase year-over-year.

Extreme Networks (NASDAQ:EXTR - Get Free Report) had its price target boosted by equities researchers at UBS Group from $15.00 to $21.00 in a report issued on Thursday,Benzinga reports. The brokerage currently has a "neutral" rating on the technology company's stock. UBS Group's price objective indicates a potential upside of 7.47% from the stock's previous close.

Other equities research analysts also recently issued reports about the stock. Needham & Company LLC increased their price objective on shares of Extreme Networks from $20.00 to $24.00 and gave the company a "buy" rating in a research report on Thursday. Lake Street Capital upgraded Extreme Networks from a "hold" rating to a "buy" rating and set a $24.00 target price for the company in a research report on Thursday. Rosenblatt Securities upped their price objective on Extreme Networks from $20.00 to $25.00 and gave the stock a "buy" rating in a report on Thursday. Finally, Wall Street Zen raised Extreme Networks from a "buy" rating to a "strong-buy" rating in a report on Thursday, May 22nd. One investment analyst has rated the stock with a hold rating, five have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Buy" and an average price target of $22.92.

Extreme Networks Stock Performance

NASDAQ:EXTR traded down $0.61 during trading hours on Thursday, hitting $19.54. 619,916 shares of the company were exchanged, compared to its average volume of 1,232,128. The company has a debt-to-equity ratio of 2.33, a current ratio of 0.93 and a quick ratio of 0.70. The company's 50 day moving average price is $17.39 and its 200-day moving average price is $15.51. Extreme Networks has a 52-week low of $10.10 and a 52-week high of $21.34. The stock has a market capitalization of $2.60 billion, a price-to-earnings ratio of -47.57, a PEG ratio of 2.08 and a beta of 1.75.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The technology company reported $0.25 EPS for the quarter, beating analysts' consensus estimates of $0.22 by $0.03. Extreme Networks had a negative net margin of 4.94% and a positive return on equity of 13.79%. The company had revenue of $307.00 million during the quarter, compared to the consensus estimate of $299.88 million. During the same quarter in the prior year, the company posted ($0.08) EPS. The company's quarterly revenue was up 19.6% compared to the same quarter last year. As a group, research analysts forecast that Extreme Networks will post 0.31 earnings per share for the current year.

Insider Activity at Extreme Networks

In other 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 completion of the sale, the chief executive officer owned 1,541,282 shares in the company, valued at approximately $26,479,224.76. This trade represents a 2.27% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Raj Khanna sold 7,973 shares of the company's stock in a transaction 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 transaction, the director owned 233,735 shares of the company's stock, valued at $4,020,242. This represents a 3.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 81,450 shares of company stock valued at $1,436,774. Insiders own 3.70% of the company's stock.

Hedge Funds Weigh In On Extreme Networks

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in EXTR. Sterling Capital Management LLC grew its holdings in shares of Extreme Networks by 603.3% during the fourth quarter. Sterling Capital Management LLC now owns 1,941 shares of the technology company's stock valued at $32,000 after buying an additional 1,665 shares during the last quarter. Orion Capital Management LLC bought a new stake in shares of Extreme Networks during the 4th quarter worth about $33,000. Quarry LP lifted its stake in Extreme Networks by 42.1% in the fourth quarter. Quarry LP now owns 2,426 shares of the technology company's stock valued at $41,000 after acquiring an additional 719 shares during the last quarter. GAMMA Investing LLC lifted its stake in shares of Extreme Networks by 105.6% in the first quarter. GAMMA Investing LLC now owns 3,170 shares of the technology company's stock worth $42,000 after buying an additional 1,628 shares during the last quarter. Finally, Byrne Asset Management LLC grew its holdings in shares of Extreme Networks by 115.6% in the 1st quarter. Byrne Asset Management LLC now owns 3,881 shares of the technology company's stock worth $51,000 after purchasing an additional 2,081 shares during the last quarter. 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.

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