Extreme Networks (NASDAQ:EXTR) Hits New 12-Month High – Should You Buy?

Shares of Extreme Networks, Inc. (NASDAQ:EXTR) reached a new 52-week high during mid-day trading on Monday . The company traded as high as $32.39 and last traded at $32.2030, with a volume of 698465 shares. The stock had previously closed at $31.74.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. Needham & Company LLC upped their price objective on Extreme Networks from $21.00 to $26.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. Weiss Ratings downgraded Extreme Networks from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, May 15th. UBS Group set a $28.00 price target on shares of Extreme Networks in a research report on Thursday, April 30th. B. Riley Financial reiterated a “buy” rating on shares of Extreme Networks in a research note on Thursday, April 30th. Finally, Lake Street Capital raised their price objective on shares of Extreme Networks from $25.00 to $34.00 and gave the stock a “buy” rating in a report on Monday, June 15th. Six investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Extreme Networks presently has an average rating of “Moderate Buy” and an average price target of $30.83.

Extreme Networks Price Performance

The firm has a 50 day moving average price of $25.53 and a 200 day moving average price of $19.04. The stock has a market capitalization of $4.23 billion, a PE ratio of 269.54, a price-to-earnings-growth ratio of 3.00 and a beta of 1.80. The company has a current ratio of 0.91, a quick ratio of 0.78 and a debt-to-equity ratio of 1.89.

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

Insider Buying and Selling

In other Extreme Networks news, Director Edward H. Kennedy sold 50,000 shares of the firm’s stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $22.86, for a total transaction of $1,143,000.00. Following the sale, the director owned 576,045 shares in the company, valued at approximately $13,168,388.70. This trade represents a 7.99% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Edward Meyercord sold 100,000 shares of Extreme Networks stock in a transaction that occurred on 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 transaction, the chief executive officer directly owned 1,721,902 shares in the company, valued at $44,941,642.20. This represents a 5.49% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 642,182 shares of company stock valued at $16,188,978 in the last 90 days. Corporate insiders own 3.60% of the company’s stock.

Institutional Trading of Extreme Networks

A number of hedge funds and other institutional investors have recently modified their holdings of EXTR. Vanguard Group Inc. lifted its stake 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 valued at $318,219,000 after buying an additional 349,199 shares in the last quarter. State Street Corp raised its holdings in Extreme Networks by 3.9% during the fourth quarter. State Street Corp now owns 5,664,493 shares of the technology company’s stock valued at $94,314,000 after acquiring an additional 213,094 shares during the period. Paradigm Capital Management Inc. NY raised its holdings in Extreme Networks by 5.3% during 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 acquiring an additional 262,400 shares during the period. Arrowstreet Capital Limited Partnership lifted its position in shares of Extreme Networks by 7.6% in the first quarter. Arrowstreet Capital Limited Partnership now owns 3,247,680 shares of the technology company’s stock valued at $48,975,000 after acquiring an additional 230,617 shares in the last quarter. Finally, Alyeska Investment Group L.P. boosted its stake in shares of Extreme Networks by 301.9% in the fourth quarter. Alyeska Investment Group L.P. now owns 2,971,718 shares of the technology company’s stock worth $49,479,000 after acquiring an additional 2,232,373 shares during the period. 91.05% of the stock is owned by hedge funds and other institutional investors.

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.