Extreme Networks (NASDAQ:EXTR) Shares Down 5.7% – Should You Sell?

Extreme Networks, Inc. (NASDAQ:EXTR) dropped 5.7% during trading on Wednesday . The company traded as low as $17.48 and last traded at $17.6020. Approximately 2,664,528 shares changed hands during trading, an increase of 52% from the average daily volume of 1,750,654 shares. The stock had previously closed at $18.67.

Wall Street Analyst Weigh In

EXTR has been the topic of a number of recent analyst reports. UBS Group restated a “neutral” rating and set a $17.00 target price on shares of Extreme Networks in a research note on Thursday, January 29th. Weiss Ratings cut shares of Extreme Networks from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, February 17th. Needham & Company LLC decreased their target price on shares of Extreme Networks from $24.00 to $21.00 and set a “buy” rating on the stock in a research note on Thursday, January 29th. Rosenblatt Securities restated a “buy” rating and set a $25.00 target price on shares of Extreme Networks in a research note on Thursday, January 29th. Finally, Wall Street Zen upgraded shares of Extreme Networks from a “buy” rating to a “strong-buy” rating in a research note on Saturday, February 28th. Six analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $22.67.

Extreme Networks Stock Performance

The stock has a market cap of $2.33 billion, a P/E ratio of 246.89, a PEG ratio of 1.93 and a beta of 1.62. The company has a debt-to-equity ratio of 1.61, a current ratio of 0.95 and a quick ratio of 0.80. The firm’s 50-day moving average price is $15.23 and its 200-day moving average price is $16.61.

Extreme Networks (NASDAQ:EXTR) last posted its earnings results on Wednesday, January 28th. The technology company reported $0.26 earnings per share for the quarter, beating analysts’ consensus estimates of $0.24 by $0.02. Extreme Networks had a net margin of 0.75% and a return on equity of 75.56%. The firm had revenue of $317.93 million during the quarter, compared to analyst estimates of $312.33 million. During the same period last year, the firm posted $0.21 earnings per share. Extreme Networks’s revenue for the quarter was up 13.8% compared to the same quarter last year. Extreme Networks has set its Q3 2026 guidance at 0.230-0.250 EPS and its FY 2026 guidance at 0.980-1.020 EPS. Sell-side analysts expect that Extreme Networks, Inc. will post 0.47 earnings per share for the current fiscal year.

Insider Buying and Selling at Extreme Networks

In related news, CEO Edward Meyercord sold 50,000 shares of the firm’s stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $15.30, for a total value of $765,000.00. Following the completion of the transaction, the chief executive officer directly owned 1,897,270 shares of the company’s stock, valued at approximately $29,028,231. This trade represents a 2.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 3.60% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Salomon & Ludwin LLC purchased a new position in shares of Extreme Networks in the third quarter valued at $27,000. Caitong International Asset Management Co. Ltd purchased a new position in Extreme Networks during the third quarter worth $31,000. Rockefeller Capital Management L.P. boosted its stake in Extreme Networks by 313.7% during the fourth quarter. Rockefeller Capital Management L.P. now owns 1,957 shares of the technology company’s stock worth $33,000 after buying an additional 1,484 shares during the period. CWM LLC boosted its stake in Extreme Networks by 44.8% during the third quarter. CWM LLC now owns 2,095 shares of the technology company’s stock worth $43,000 after buying an additional 648 shares during the period. Finally, Farther Finance Advisors LLC boosted its stake in Extreme Networks by 85.4% during the third quarter. Farther Finance Advisors LLC now owns 2,201 shares of the technology company’s stock worth $45,000 after buying an additional 1,014 shares during the period. 91.05% of the stock is owned by hedge funds and other institutional investors.

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.