Extreme Networks (NASDAQ:EXTR) Stock Sees Unusually High Call Option Buying

Extreme Networks, Inc. (NASDAQ:EXTR) saw some unusual options trading activity on Friday. Investors bought 3,027 call options on the company. This represents an increase of 739% compared to the typical daily volume of 361 call options.

Analyst Upgrades and Downgrades

EXTR has been the topic of a number of analyst reports. B. Riley Financial boosted their price objective on Extreme Networks from $28.00 to $34.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Zacks Research upgraded Extreme Networks from a “hold” rating to a “strong-buy” rating in a research note on Monday. Rosenblatt Securities reaffirmed a “buy” rating and set a $38.00 target price on shares of Extreme Networks in a report on Thursday, October 29th. Needham & Company LLC reiterated a “buy” rating and set a $35.00 price target on shares of Extreme Networks in a research report on Wednesday, October 28th. Finally, Wall Street Zen raised shares of Extreme Networks from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 8th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $33.86.

Insider Buying and Selling

In related news, CFO Kevin Rhodes sold 21,825 shares of the firm’s stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $22.30, for a total value of $486,697.50. Following the completion of the transaction, the chief financial officer directly owned 196,803 shares of the company’s stock, valued at approximately $4,388,706.90. This trade represents a 9.98% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Edward Meyercord sold 50,000 shares of Extreme Networks stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $21.77, for a total transaction of $1,088,500.00. Following the completion of the transaction, the chief executive officer owned 1,710,097 shares of the company’s stock, valued at $37,228,811.69. This represents a 2.84% 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. Corporate insiders own 3.20% of the company’s stock.

Institutional Trading of Extreme Networks

A number of large investors have recently modified their holdings of EXTR. First Bank & Trust grew its holdings in shares of Extreme Networks by 2.4% during the second quarter. First Bank & Trust now owns 13,191 shares of the technology company’s stock worth $427,000 after purchasing an additional 306 shares in the last quarter. GAMMA Investing LLC increased its position in shares of Extreme Networks by 13.2% in the second quarter. GAMMA Investing LLC now owns 4,001 shares of the technology company’s stock worth $130,000 after purchasing an additional 465 shares during the last quarter. CoreCap Advisors LLC raised its stake in Extreme Networks by 72.3% in the third quarter. CoreCap Advisors LLC now owns 1,201 shares of the technology company’s stock valued at $26,000 after purchasing an additional 504 shares in the last quarter. Allspring Global Investments Holdings LLC raised its stake in Extreme Networks by 6.4% in the third quarter. Allspring Global Investments Holdings LLC now owns 9,182 shares of the technology company’s stock valued at $202,000 after purchasing an additional 549 shares in the last quarter. Finally, Verdence Capital Advisors LLC raised its stake in Extreme Networks by 2.3% in the third quarter. Verdence Capital Advisors LLC now owns 25,166 shares of the technology company’s stock valued at $540,000 after purchasing an additional 561 shares in the last quarter. Institutional investors own 91.05% of the company’s stock.

Extreme Networks Price Performance

Shares of EXTR traded up $3.03 during mid-day trading on Friday, reaching $24.08. 1,669,001 shares of the stock traded hands, compared to its average volume of 1,910,476. The firm has a fifty day moving average price of $22.45 and a 200 day moving average price of $22.11. The company has a market cap of $3.16 billion, a price-to-earnings ratio of 61.78, a price-to-earnings-growth ratio of 1.47 and a beta of 1.81. The company has a current ratio of 1.02, a quick ratio of 0.87 and a debt-to-equity ratio of 2.27. Extreme Networks has a 1 year low of $13.48 and a 1 year high of $33.73.

Extreme Networks (NASDAQ:EXTR) last posted its quarterly earnings data on Wednesday, October 28th. The technology company reported $0.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.28 by $0.05. Extreme Networks had a return on equity of 102.41% and a net margin of 3.99%. The company had revenue of $341.09 million during the quarter, compared to analyst estimates of $336.75 million. During the same quarter last year, the company earned $0.22 earnings per share. The firm’s quarterly revenue was up 10.0% on a year-over-year basis. As a group, equities research analysts predict that Extreme Networks will post 0.86 earnings per share for the current year.

Extreme Networks Company Profile

Extreme Networks, Inc develops networking solutions that help organizations connect, manage and secure users, devices and applications across campus, data center and distributed environments. Its portfolio includes wired and wireless network infrastructure, Ethernet switches, access points, software-defined wide-area networking (SD-WAN), network access control and cloud-based network management.

The company’s ExtremeCloud platform supports centralized monitoring, configuration, analytics and automation for network operations.