Extreme Networks (NASDAQ:EXTR) Shares Gap Up – Should You Buy?

Extreme Networks, Inc. (NASDAQ:EXTR) gapped up prior to trading on Friday. The stock had previously closed at $21.05, but opened at $24.04. Extreme Networks shares last traded at $24.7370, with a volume of 1,300,638 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on EXTR shares. Rosenblatt Securities reaffirmed a “buy” rating and set a $38.00 price objective on shares of Extreme Networks in a report on Thursday, October 29th. 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. Wall Street Zen raised Extreme Networks from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 8th. UBS Group set a $32.00 target price on Extreme Networks in a research report on Thursday, October 29th. Finally, Weiss Ratings upgraded Extreme Networks from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $33.86.

Extreme Networks Stock Up 15.6%

The business’s fifty day moving average price is $22.45 and its 200 day moving average price is $22.11. The firm has a market capitalization of $3.19 billion, a price-to-earnings ratio of 62.59, a PEG ratio of 1.47 and a beta of 1.81. The company has a current ratio of 1.02, a quick ratio of 0.87 and a debt-to-equity ratio of 2.27.

Extreme Networks (NASDAQ:EXTR) last released its quarterly earnings results on Wednesday, October 28th. The technology company reported $0.33 EPS for the quarter, beating the consensus estimate of $0.28 by $0.05. The firm had revenue of $341.09 million during the quarter, compared to the consensus estimate of $336.75 million. Extreme Networks had a net margin of 3.99% and a return on equity of 102.41%. Extreme Networks’s revenue for the quarter was up 10.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.22 EPS. On average, equities analysts expect that Extreme Networks, Inc. will post 0.86 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Kevin Rhodes sold 21,825 shares of the company’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $22.30, for a total value of $486,697.50. Following the completion of the sale, the chief financial officer directly owned 196,803 shares of the company’s stock, valued at approximately $4,388,706.90. This represents a 9.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 dated Thursday, October 1st. The shares were sold at an average price of $21.77, for a total transaction of $1,088,500.00. Following the completion of the sale, the chief executive officer directly 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 3.20% of the company’s stock.

Institutional Trading of Extreme Networks

Several institutional investors and hedge funds have recently added to or reduced their stakes in EXTR. BlackRock Inc. acquired a new stake in Extreme Networks during the 2nd quarter worth approximately $674,661,000. Paradigm Capital Management Inc. NY purchased a new position in shares of Extreme Networks in the 2nd quarter valued at approximately $137,291,000. Bank of America Corp DE purchased a new position in shares of Extreme Networks in the 2nd quarter valued at approximately $45,531,000. SEB Asset Management AB acquired a new position in shares of Extreme Networks in the first quarter valued at approximately $12,192,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of Extreme Networks in the second quarter valued at approximately $23,896,000. 91.05% of the stock is owned by hedge funds and other institutional investors.

About Extreme Networks

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.