Extreme Networks (NASDAQ:EXTR) Stock Rating Reaffirmed as “Buy” by Rosenblatt Securities

Extreme Networks (NASDAQ:EXTR)‘s stock had its “buy” rating reiterated by Rosenblatt Securities in a note issued to investors on Thursday, Benzinga reports. They presently have a $38.00 price objective on the technology company’s stock. Rosenblatt Securities‘s price objective would indicate a potential upside of 55.48% from the company’s previous close.

EXTR has been the topic of several other reports. Oppenheimer restated an “outperform” rating on shares of Extreme Networks in a research note on Thursday, August 6th. Needham & Company LLC reiterated a “buy” rating and set a $35.00 target price on shares of Extreme Networks in a research note on Wednesday. Weiss Ratings raised shares of Extreme Networks from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, October 16th. B. Riley Financial increased their target price on shares of Extreme Networks from $28.00 to $34.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. Finally, Craig Hallum restated a “buy” rating and issued a $31.00 price target on shares of Extreme Networks in a research report on Thursday, August 6th. Seven analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $32.25.

Extreme Networks Stock Performance

Extreme Networks stock opened at $24.44 on Thursday. Extreme Networks has a 12-month low of $13.48 and a 12-month high of $33.73. The company has a market capitalization of $3.23 billion, a price-to-earnings ratio of 78.84, a price-to-earnings-growth ratio of 1.45 and a beta of 1.76. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.93 and a quick ratio of 0.81. The firm’s fifty day moving average price is $22.46 and its 200 day moving average price is $21.91.

Extreme Networks (NASDAQ:EXTR) last announced its earnings results on Wednesday, October 28th. The technology company reported $0.33 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.28 by $0.05. The company had revenue of $341.09 million for the quarter, compared to analyst estimates of $336.75 million. Extreme Networks had a return on equity of 88.88% and a net margin of 3.28%. Extreme Networks’s quarterly revenue was up 10.0% on a year-over-year basis. During the same period in the prior year, the company posted $0.22 EPS. On average, research analysts forecast that Extreme Networks will post 0.75 EPS for the current fiscal year.

Insider Activity

In related news, CEO Edward Meyercord sold 50,000 shares of Extreme Networks stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $29.79, for a total transaction of $1,489,500.00. Following the transaction, the chief executive officer directly owned 1,596,475 shares of the company’s stock, valued at $47,558,990.25. The trade was a 3.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin R. Rhodes sold 21,825 shares of Extreme Networks stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $22.30, for a total transaction of $486,697.50. Following the completion of the transaction, the chief financial officer directly owned 196,803 shares in the company, valued at $4,388,706.90. This represents a 9.98% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 121,825 shares of company stock worth $3,064,698. 3.20% of the stock is owned by corporate insiders.

Institutional Trading of Extreme Networks

Institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. purchased a new stake in shares of Extreme Networks in the second quarter worth approximately $674,661,000. Paradigm Capital Management Inc. NY boosted its holdings in shares of Extreme Networks by 5.3% during the first quarter. Paradigm Capital Management Inc. NY now owns 5,234,900 shares of the technology company’s stock worth $78,942,000 after purchasing an additional 262,400 shares during the period. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Extreme Networks by 7.6% during the first quarter. Arrowstreet Capital Limited Partnership now owns 3,247,680 shares of the technology company’s stock worth $48,975,000 after purchasing an additional 230,617 shares during the period. Southernsun Asset Management LLC grew its position in Extreme Networks by 16.6% during the first quarter. Southernsun Asset Management LLC now owns 2,297,933 shares of the technology company’s stock valued at $34,653,000 after purchasing an additional 327,047 shares in the last quarter. Finally, Renaissance Technologies LLC grew its position in Extreme Networks by 32.6% during the first quarter. Renaissance Technologies LLC now owns 2,076,080 shares of the technology company’s stock valued at $31,307,000 after purchasing an additional 510,215 shares in the last quarter. Institutional investors and hedge funds own 91.05% of the company’s stock.

More Extreme Networks News

Here are the key news stories impacting Extreme Networks this week:

• Positive Sentiment: Q1 results exceeded expectations. Extreme Networks reported adjusted EPS of $0.33 versus the $0.28 analyst consensus, while revenue rose 10% year over year to $341.1 million, ahead of the $336.75 million estimate. GAAP net income increased to $16.0 million from $5.6 million, and operating margin expanded to 6.8% from 3.6%. Extreme Networks Q1 earnings report
• Positive Sentiment: Growth outlook remains favorable. Management forecast fiscal Q2 revenue of $345.8 million to $350.8 million and GAAP EPS of $0.19 to $0.22. Fiscal 2027 revenue guidance was set at $1.402 billion to $1.412 billion, with GAAP EPS of $0.77 to $0.83. Extreme Networks fiscal 2027 results
• Positive Sentiment: Platform ONE momentum strengthened. Subscription bookings for Platform ONE accounted for more than 50% of total subscription bookings, up fivefold from the prior year. SaaS annual recurring revenue rose 22% to $264.7 million, supporting the company’s recurring-revenue strategy. Platform ONE adoption article
• Neutral Sentiment: Extreme repurchased $25 million of stock during the quarter, which may support per-share results, although the company’s relatively high valuation leaves shares sensitive to any slowdown in growth.
• Negative Sentiment: Regulatory risk remains a concern. Extreme agreed to pay approximately $976,000 to resolve a Justice Department probe involving sales of networking equipment to a Russian weapons manufacturer. The settlement adds compliance and reputational risk, even though the financial penalty is modest relative to revenue. DOJ settlement article
• Negative Sentiment: Quiver data showed continued insider selling, with executives reporting 27 sales and no purchases over the past six months, a potential negative signal for sentiment.

About Extreme Networks

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.