Extreme Networks (NASDAQ:EXTR) Shares Down 9.3% – Should You Sell?

Extreme Networks, Inc. (NASDAQ:EXTR) was down 9.3% during trading on Wednesday . The company traded as low as $29.97 and last traded at $29.9420. 1,050,167 shares traded hands during trading, a decline of 50% from the average daily volume of 2,106,244 shares. The stock had previously closed at $33.02.

Wall Street Analyst Weigh In

EXTR has been the subject of a number of recent analyst reports. Weiss Ratings raised Extreme Networks from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Monday, July 6th. Rosenblatt Securities lifted their price target on shares of Extreme Networks from $29.00 to $39.00 and gave the company a “buy” rating in a research report on Thursday, June 11th. Bank of America boosted their price objective on shares of Extreme Networks from $28.00 to $33.00 and gave the stock a “buy” rating in a research note on Monday, June 8th. B. Riley Financial reiterated a “buy” rating on shares of Extreme Networks in a research note on Thursday, April 30th. Finally, Lake Street Capital boosted their target price on shares of Extreme Networks from $25.00 to $34.00 and gave the stock a “buy” rating in a research report on Monday, June 15th. Six investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Extreme Networks presently has an average rating of “Moderate Buy” and a consensus price target of $30.83.

Extreme Networks Stock Down 7.0%

The stock has a market capitalization of $4.02 billion, a P/E ratio of 256.02, a price-to-earnings-growth ratio of 2.02 and a beta of 1.77. The company has a debt-to-equity ratio of 1.89, a current ratio of 0.91 and a quick ratio of 0.78. The firm has a 50 day moving average of $28.60 and a 200-day moving average of $20.28.

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

Insider Buying and Selling

In other news, Director Kathleen M. Holmgren sold 19,521 shares of the firm’s stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $24.78, for a total transaction of $483,730.38. Following the completion of the sale, the director owned 219,308 shares of the company’s stock, valued at approximately $5,434,452.24. This trade represents a 8.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Edward Meyercord sold 100,000 shares of the firm’s stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $29.20, for a total value of $2,920,000.00. Following the sale, the chief executive officer directly owned 1,621,902 shares of the company’s stock, valued at $47,359,538.40. This represents a 5.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 592,182 shares of company stock worth $15,423,978 in the last quarter. Corporate insiders own 3.60% of the company’s stock.

Hedge Funds Weigh In On Extreme Networks

A number of institutional investors have recently modified their holdings of EXTR. Vanguard Group Inc. raised its stake in shares of Extreme Networks by 1.9% during the fourth 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. M&T Bank Corp grew its holdings in Extreme Networks by 547.7% during the fourth quarter. M&T Bank Corp now owns 77,937 shares of the technology company’s stock valued at $1,298,000 after purchasing an additional 65,904 shares during the period. Oppenheimer Asset Management Inc. acquired a new position in shares of Extreme Networks in the 4th quarter valued at $1,009,000. Impax Asset Management Group plc lifted its holdings in Extreme Networks by 10.5% during the fourth quarter. Impax Asset Management Group plc now owns 945,178 shares of the technology company’s stock worth $15,737,000 after acquiring an additional 90,000 shares in the last quarter. Finally, Abacus FCF Advisors LLC acquired a new stake in shares of Extreme Networks during the fourth quarter worth about $6,439,000. 91.05% of the stock is owned by 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.