Extreme Networks (NASDAQ:EXTR) Sets New 12-Month Low – Here’s Why

Extreme Networks, Inc. (NASDAQ:EXTR)’s share price reached a new 52-week low during mid-day trading on Friday . The company traded as low as $10.17 and last traded at $10.62, with a volume of 639651 shares changing hands. The stock had previously closed at $11.62.

Analyst Upgrades and Downgrades

EXTR has been the topic of a number of research reports. Rosenblatt Securities reiterated a “buy” rating and set a $22.00 target price on shares of Extreme Networks in a research report on Friday, February 7th. StockNews.com upgraded Extreme Networks from a “hold” rating to a “buy” rating in a research report on Thursday, December 19th. Needham & Company LLC restated a “buy” rating and set a $20.00 target price on shares of Extreme Networks in a research report on Thursday, January 30th. Finally, Lake Street Capital raised their price target on Extreme Networks from $15.00 to $16.00 and gave the company a “hold” rating in a report on Thursday, January 30th. One investment analyst has rated the stock with a hold rating and five have given a buy rating to the company. According to MarketBeat.com, Extreme Networks presently has a consensus rating of “Moderate Buy” and a consensus price target of $20.30.

Extreme Networks Stock Down 5.1 %

The stock has a market capitalization of $1.46 billion, a price-to-earnings ratio of -11.73, a P/E/G ratio of 3.06 and a beta of 1.72. The company has a debt-to-equity ratio of 3.34, a quick ratio of 0.68 and a current ratio of 0.93. The firm’s fifty day simple moving average is $14.97 and its 200 day simple moving average is $15.82.

Extreme Networks (NASDAQ:EXTR) last posted its quarterly earnings data 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 return on equity of 110.86% and a negative net margin of 11.98%. On average, sell-side analysts forecast that Extreme Networks, Inc. will post 0.31 earnings per share for the current year.

Extreme Networks declared that its board has authorized a stock repurchase plan on Tuesday, February 18th that permits the company to repurchase $200.00 million in shares. This repurchase authorization permits the technology company to repurchase up to 9.2% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its shares are undervalued.

Insider Buying and Selling

In other news, CEO Edward Meyercord sold 35,725 shares of the business’s stock in a transaction dated 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 in the company, valued at $22,760,901.99. The trade was a 2.36 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 3.70% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Extreme Networks

A number of hedge funds and other institutional investors have recently bought and sold shares of EXTR. Vanguard Group Inc. raised its stake in Extreme Networks by 4.0% in the fourth quarter. Vanguard Group Inc. now owns 17,919,069 shares of the technology company’s stock valued at $299,965,000 after buying an additional 690,262 shares during the period. State Street Corp lifted its holdings in Extreme Networks by 1.0% during the 3rd quarter. State Street Corp now owns 5,134,008 shares of the technology company’s stock valued at $77,164,000 after purchasing an additional 49,905 shares during the last quarter. Geode Capital Management LLC lifted its holdings in Extreme Networks by 1.7% during the 4th quarter. Geode Capital Management LLC now owns 3,068,854 shares of the technology company’s stock valued at $51,385,000 after purchasing an additional 49,888 shares during the last quarter. American Century Companies Inc. increased its holdings in shares of Extreme Networks by 11.4% in the fourth quarter. American Century Companies Inc. now owns 2,837,171 shares of the technology company’s stock valued at $47,494,000 after purchasing an additional 290,184 shares during the last quarter. Finally, Trigran Investments Inc. increased its holdings in shares of Extreme Networks by 4.1% in the fourth quarter. Trigran Investments Inc. now owns 2,384,325 shares of the technology company’s stock valued at $39,914,000 after purchasing an additional 94,508 shares during the last quarter. Institutional investors own 91.05% of the company’s stock.

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.