Extreme Networks, Inc. (NASDAQ:EXTR) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of Extreme Networks, Inc. (NASDAQ:EXTR) have been given a consensus recommendation of “Moderate Buy” by the five research firms that are currently covering the stock, Marketbeat Ratings reports. One analyst has rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 1-year target price among brokers that have covered the stock in the last year is $20.30.

A number of research firms have recently weighed in on EXTR. Lake Street Capital upped their price target on shares of Extreme Networks from $15.00 to $16.00 and gave the stock a “hold” rating in a research note on Thursday, January 30th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $22.00 price target on shares of Extreme Networks in a research note on Friday, February 7th. StockNews.com raised shares of Extreme Networks from a “hold” rating to a “buy” rating in a research note on Thursday, December 19th. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $20.00 price target on shares of Extreme Networks in a research note on Thursday, January 30th.

Extreme Networks Price Performance

EXTR opened at $14.82 on Wednesday. The stock has a fifty day moving average of $15.83 and a 200-day moving average of $15.87. The firm has a market capitalization of $1.97 billion, a P/E ratio of -15.77, a PEG ratio of 3.06 and a beta of 1.72. Extreme Networks has a 12-month low of $10.50 and a 12-month high of $19.24. The company has a quick ratio of 0.68, a current ratio of 0.93 and a debt-to-equity ratio of 3.34.

Extreme Networks (NASDAQ:EXTR) last released its earnings results on Wednesday, January 29th. The technology company reported $0.11 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.07). Extreme Networks had a negative net margin of 11.98% and a negative return on equity of 110.86%. Equities analysts forecast that Extreme Networks will post 0.31 EPS for the current fiscal year.

Extreme Networks declared that its board has approved a stock buyback program on Tuesday, February 18th that allows the company to buyback $200.00 million in outstanding shares. This buyback authorization allows the technology company to repurchase up to 9.2% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other Extreme Networks news, CEO Edward Meyercord sold 35,725 shares of the stock in a transaction on Monday, February 3rd. The shares were sold at an average price of $15.39, for a total transaction of $549,807.75. Following the transaction, the chief executive officer now directly owns 1,478,941 shares of the company’s stock, valued at $22,760,901.99. This represents a 2.36 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 3.70% of the company’s stock.

Hedge Funds Weigh In On Extreme Networks

Hedge funds have recently bought and sold shares of the business. Dynamic Technology Lab Private Ltd bought a new position in shares of Extreme Networks in the third quarter worth about $651,000. Barclays PLC increased its stake in shares of Extreme Networks by 369.8% in the third quarter. Barclays PLC now owns 217,875 shares of the technology company’s stock worth $3,274,000 after purchasing an additional 171,500 shares during the period. Essex Investment Management Co. LLC bought a new position in shares of Extreme Networks in the fourth quarter worth about $2,599,000. Legato Capital Management LLC increased its stake in shares of Extreme Networks by 225.2% in the fourth quarter. Legato Capital Management LLC now owns 107,948 shares of the technology company’s stock worth $1,807,000 after purchasing an additional 74,758 shares during the period. Finally, Connor Clark & Lunn Investment Management Ltd. increased its stake in shares of Extreme Networks by 57.5% in the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 738,297 shares of the technology company’s stock worth $11,097,000 after purchasing an additional 269,459 shares during the period. 91.05% of the stock is owned by institutional investors and hedge funds.

Extreme Networks Company Profile

Extreme Networks, Inc delivers cloud-driven networking solutions that leverage the powers of machine learning, artificial intelligence, analytics, and automation.
The company designs, develops, and manufactures wired and wireless network infrastructure equipment and develops the software for network management, policy, analytics, security, and access controls.