Wall Street Zen Downgrades Extreme Networks (NASDAQ:EXTR) to Buy

Extreme Networks (NASDAQ:EXTR) was downgraded by investment analysts at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a report released on Saturday.

Other equities analysts also recently issued research reports about the company. UBS Group set a $28.00 price objective on Extreme Networks in a research report on Thursday, April 30th. Bank of America raised their target price on Extreme Networks from $28.00 to $33.00 and gave the stock a “buy” rating in a research note on Monday, June 8th. Needham & Company LLC lifted their price target on Extreme Networks from $21.00 to $26.00 and gave the stock a “buy” rating in a report on Thursday, April 30th. Lake Street Capital lifted their price target on Extreme Networks from $25.00 to $34.00 and gave the stock a “buy” rating in a report on Monday, June 15th. Finally, B. Riley Financial reissued a “buy” rating on shares of Extreme Networks in a report on Thursday, April 30th. Six research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $30.83.

Extreme Networks Price Performance

Shares of EXTR opened at $30.34 on Friday. Extreme Networks has a one year low of $13.48 and a one year high of $33.73. The stock has a market capitalization of $3.97 billion, a price-to-earnings ratio of 252.83, a PEG ratio of 1.86 and a beta of 1.77. The stock has a 50 day moving average price of $28.99 and a 200 day moving average price of $20.56. The company has a debt-to-equity ratio of 1.89, a quick ratio of 0.78 and a current ratio of 0.91.

Extreme Networks (NASDAQ:EXTR) last issued its earnings results on Wednesday, April 29th. The technology company reported $0.26 EPS for the quarter, beating analysts’ consensus estimates of $0.24 by $0.02. The business had revenue of $316.87 million during the quarter, compared to analysts’ expectations of $311.48 million. Extreme Networks had a net margin of 1.30% and a return on equity of 81.88%. The company’s quarterly revenue was up 11.4% compared to the same quarter last year. During the same period in the prior year, the business earned $0.21 earnings per share. Extreme Networks has set its Q4 2026 guidance at 0.280-0.300 EPS. Equities research analysts forecast that Extreme Networks will post 0.53 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Kevin R. Rhodes sold 35,000 shares of Extreme Networks stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $30.43, for a total value of $1,065,050.00. Following the completion of the transaction, the chief financial officer owned 151,296 shares in the company, valued at approximately $4,603,937.28. The trade was a 18.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Edward H. Kennedy sold 50,000 shares of Extreme Networks stock in a transaction on Monday, May 4th. The shares were sold at an average price of $22.86, for a total value of $1,143,000.00. Following the completion of the transaction, the director owned 576,045 shares of the company’s stock, valued at approximately $13,168,388.70. This trade represents a 7.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 592,182 shares of company stock valued at $15,423,978. 3.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. lifted its position in shares of Extreme Networks by 1.9% during the 4th quarter. Vanguard Group Inc. now owns 19,112,223 shares of the technology company’s stock worth $318,219,000 after buying an additional 349,199 shares during the last quarter. State Street Corp raised its stake in shares of Extreme Networks by 3.9% during the fourth quarter. State Street Corp now owns 5,664,493 shares of the technology company’s stock worth $94,314,000 after purchasing an additional 213,094 shares during the last quarter. Paradigm Capital Management Inc. NY lifted its position in Extreme Networks by 5.3% in the first quarter. Paradigm Capital Management Inc. NY now owns 5,234,900 shares of the technology company’s stock valued at $78,942,000 after purchasing an additional 262,400 shares during the period. Arrowstreet Capital Limited Partnership grew its stake in shares of Extreme Networks by 7.6% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,247,680 shares of the technology company’s stock worth $48,975,000 after purchasing an additional 230,617 shares during the period. Finally, Alyeska Investment Group L.P. lifted its position in shares of Extreme Networks by 301.9% during the 4th quarter. Alyeska Investment Group L.P. now owns 2,971,718 shares of the technology company’s stock valued at $49,479,000 after acquiring an additional 2,232,373 shares during the period. Hedge funds and other institutional investors own 91.05% of the company’s stock.

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.