Rosenblatt Securities Has Lowered Expectations for Extreme Networks (NASDAQ:EXTR) Stock Price

Extreme Networks (NASDAQ:EXTR) had its target price reduced by investment analysts at Rosenblatt Securities from $39.00 to $38.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage presently has a “buy” rating on the technology company’s stock. Rosenblatt Securities’ price objective would indicate a potential upside of 58.53% from the stock’s previous close.

Other equities analysts also recently issued research reports about the stock. Weiss Ratings raised shares of Extreme Networks from a “sell (d+)” rating to a “hold (c-)” rating in a report on Monday, July 6th. UBS Group set a $28.00 price target on shares of Extreme Networks in a report on Thursday, April 30th. Bank of America increased their price objective on shares of Extreme Networks from $28.00 to $33.00 and gave the company a “buy” rating in a report on Monday, June 8th. B. Riley Financial restated a “buy” rating on shares of Extreme Networks in a research report on Thursday, April 30th. Finally, Lake Street Capital lifted their target price on Extreme Networks from $25.00 to $34.00 and gave the stock a “buy” rating in a report on Monday, June 15th. Seven research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $32.25.

Extreme Networks Trading Down 1.4%

Shares of EXTR stock opened at $23.97 on Thursday. Extreme Networks has a 52-week low of $13.48 and a 52-week high of $33.73. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.78 and a current ratio of 0.93. The firm has a market capitalization of $3.13 billion, a PE ratio of 77.33, a PEG ratio of 1.48 and a beta of 1.79. The stock has a fifty day simple moving average of $30.27 and a two-hundred day simple moving average of $21.88.

Extreme Networks (NASDAQ:EXTR) last announced its quarterly earnings data on Wednesday, August 5th. The technology company reported $0.32 EPS for the quarter, beating the consensus estimate of $0.29 by $0.03. Extreme Networks had a return on equity of 88.88% and a net margin of 3.28%.The business had revenue of $338.55 million for the quarter, compared to the consensus estimate of $332.49 million. During the same period in the previous year, the business earned $0.25 earnings per share. The business’s revenue was up 10.3% on a year-over-year basis. Extreme Networks has set its FY 2027 guidance at 1.280-1.330 EPS and its Q1 2027 guidance at 0.270-0.290 EPS. On average, analysts predict that Extreme Networks will post 0.81 EPS for the current fiscal year.

Insider Activity

In related news, CEO Edward Meyercord sold 100,000 shares of Extreme Networks stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $26.10, for a total transaction of $2,610,000.00. Following the completion of the transaction, the chief executive officer directly owned 1,721,902 shares of the company’s stock, valued at approximately $44,941,642.20. The trade was a 5.49% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin R. Rhodes sold 35,000 shares of the company’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $30.43, for a total transaction of $1,065,050.00. Following the transaction, the chief financial officer owned 151,296 shares in the company, valued at $4,603,937.28. The trade was a 18.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 422,182 shares of company stock worth $11,905,205. 3.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of EXTR. BlackRock Inc. purchased a new stake in shares of Extreme Networks in the second quarter worth approximately $674,661,000. Deutsche Bank AG purchased a new position in Extreme Networks during the 2nd quarter valued at $11,240,000. Simplicity Wealth LLC purchased a new position in Extreme Networks during the 2nd quarter valued at $728,000. Bank of New York Mellon Corp bought a new position in Extreme Networks in the 2nd quarter valued at $23,896,000. Finally, State of Wyoming purchased a new stake in Extreme Networks in the second quarter worth $1,299,000. Institutional investors own 91.05% of the company’s stock.

Key Stories Impacting Extreme Networks

Here are the key news stories impacting Extreme Networks this week:

• Positive Sentiment: Strong quarterly results: Extreme Networks reported fiscal Q4 adjusted EPS of $0.32, ahead of the $0.29 consensus estimate, while revenue of $338.55 million exceeded expectations of $332.49 million and increased 10.3% year over year. The company also issued fiscal 2027 EPS guidance of $1.28-$1.33. Extreme Networks Fiscal Q4 Earnings Snapshot
• Positive Sentiment: B. Riley raised its target: B. Riley Financial increased its price target from $28 to $34 and maintained a “buy” rating, signaling substantial potential upside based on its outlook for EXTR. Extreme Networks Price Target Raised at B. Riley Financial
• Positive Sentiment: Rosenblatt remains bullish: Rosenblatt Securities trimmed its target modestly from $39 to $38 but retained a “buy” rating, indicating continued confidence despite the adjustment.
• Neutral Sentiment: Upcoming investor conferences: Extreme Networks will participate in investor conferences during August and September, giving management opportunities to discuss demand, execution, and its financial outlook with investors. Extreme Networks Announces Investor Conferences
• Negative Sentiment: Insider selling pressured the shares: Reports of insider sales prompted a gap lower, raising concerns about management or other insiders reducing exposure after the stock’s previous rally. Extreme Networks Shares Gap Down on Insider Selling
• Negative Sentiment: Valuation concerns remain: One analysis argues that Extreme Networks is still overvalued even after its pullback. With a high earnings multiple and only modest profitability, investors may be taking profits despite the earnings beat. Extreme Networks Q4 Fine Print But Still Overvalued After the Pullback
• Negative Sentiment: Mixed target revisions: Needham lowered its price target to $35, while the differing analyst revisions suggest expectations remain positive but are not uniformly strengthening. Extreme Networks Price Target Lowered at Needham

About Extreme Networks

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.