Extreme Networks (NASDAQ:EXTR) Shares Gap Up – Here’s Why

Extreme Networks, Inc. (NASDAQ:EXTR)’s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $16.73, but opened at $17.42. Extreme Networks shares last traded at $17.1610, with a volume of 258,985 shares.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on EXTR shares. Needham & Company LLC reiterated a “buy” rating and issued a $24.00 target price on shares of Extreme Networks in a research report on Wednesday, November 12th. Wall Street Zen lowered shares of Extreme Networks from a “strong-buy” rating to a “buy” rating in a research note on Saturday. Bank of America started coverage on Extreme Networks in a research note on Wednesday. They set a “buy” rating and a $24.00 price objective for the company. UBS Group increased their target price on Extreme Networks from $15.00 to $21.00 and gave the company a “neutral” rating in a report on Thursday, August 7th. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $25.00 price target on shares of Extreme Networks in a research report on Tuesday, November 11th. Six research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $23.83.

Extreme Networks Stock Performance

The stock has a market cap of $2.30 billion, a price-to-earnings ratio of 245.14, a PEG ratio of 1.89 and a beta of 1.82. The company has a debt-to-equity ratio of 2.32, a current ratio of 0.91 and a quick ratio of 0.74. The firm has a fifty day moving average of $20.09 and a 200 day moving average of $18.69.

Extreme Networks (NASDAQ:EXTR) last issued its earnings results on Wednesday, October 29th. The technology company reported $0.22 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.22. Extreme Networks had a return on equity of 81.83% and a net margin of 0.73%.The company had revenue of $310.25 million during the quarter, compared to analysts’ expectations of $295.72 million. During the same period in the prior year, the business earned $0.17 EPS. The firm’s quarterly revenue was up 15.2% on a year-over-year basis. Extreme Networks has set its FY 2026 guidance at EPS. Q2 2026 guidance at 0.230-0.250 EPS. As a group, sell-side analysts forecast that Extreme Networks, Inc. will post 0.31 EPS for the current year.

Insider Activity

In other news, Director Raj Khanna sold 15,000 shares of the firm’s stock in a transaction that occurred on Thursday, August 21st. The shares were sold at an average price of $19.91, for a total transaction of $298,650.00. Following the completion of the sale, the director owned 216,708 shares in the company, valued at $4,314,656.28. This trade represents a 6.47% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Kevin R. Rhodes sold 14,000 shares of Extreme Networks stock in a transaction that occurred on Thursday, August 28th. The shares were sold at an average price of $21.52, for a total transaction of $301,280.00. Following the sale, the chief financial officer directly owned 126,202 shares in the company, valued at approximately $2,715,867.04. The trade was a 9.99% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 43,000 shares of company stock valued at $901,210. 3.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On Extreme Networks

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in shares of Extreme Networks during the 1st quarter worth $1,066,000. Brooktree Capital Management boosted its stake in Extreme Networks by 15.7% during the first quarter. Brooktree Capital Management now owns 209,047 shares of the technology company’s stock worth $2,766,000 after buying an additional 28,378 shares during the period. Kovack Advisors Inc. increased its position in shares of Extreme Networks by 45.1% during the first quarter. Kovack Advisors Inc. now owns 30,240 shares of the technology company’s stock valued at $400,000 after acquiring an additional 9,400 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank raised its stake in shares of Extreme Networks by 20.9% in the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 43,012 shares of the technology company’s stock valued at $569,000 after acquiring an additional 7,430 shares during the period. Finally, Mackenzie Financial Corp lifted its holdings in shares of Extreme Networks by 30.9% in the 1st quarter. Mackenzie Financial Corp now owns 69,102 shares of the technology company’s stock worth $914,000 after acquiring an additional 16,298 shares during the last quarter. Hedge funds and other 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.