Needham & Company LLC Reiterates Buy Rating for Extreme Networks (NASDAQ:EXTR)

Extreme Networks (NASDAQ:EXTR)‘s stock had its “buy” rating reaffirmed by analysts at Needham & Company LLC in a report released on Wednesday,Benzinga reports. They currently have a $20.00 price objective on the technology company’s stock. Needham & Company LLC’s price objective would suggest a potential upside of 44.82% from the stock’s previous close.

Other equities research analysts have also recently issued reports about the stock. Rosenblatt Securities reduced their target price on shares of Extreme Networks from $22.00 to $18.00 and set a “buy” rating for the company in a research report on Tuesday, April 22nd. Lake Street Capital increased their price objective on shares of Extreme Networks from $15.00 to $16.00 and gave the company a “hold” rating in a report on Thursday, January 30th. Two investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $18.58.

Extreme Networks Stock Up 4.9 %

EXTR opened at $13.81 on Wednesday. The company has a market cap of $1.83 billion, a PE ratio of -14.69, a price-to-earnings-growth ratio of 3.06 and a beta of 1.57. Extreme Networks has a twelve month low of $10.10 and a twelve month high of $19.24. The company has a 50-day moving average price of $13.37 and a 200 day moving average price of $15.35. The company has a quick ratio of 0.68, a current ratio of 0.93 and a debt-to-equity ratio of 3.34.

Extreme Networks (NASDAQ:EXTR) last announced its earnings results on Wednesday, April 30th. The technology company reported $0.21 EPS for the quarter, beating analysts’ consensus estimates of $0.19 by $0.02. The business had revenue of $284.51 million during the quarter, compared to analysts’ expectations of $280.32 million. Extreme Networks had a negative return on equity of 110.86% and a negative net margin of 11.98%. The business’s revenue was up 34.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.19) earnings per share. Sell-side analysts expect that Extreme Networks will post 0.31 earnings per share for the current fiscal year.

Extreme Networks declared that its Board of Directors has approved a share repurchase program on Tuesday, February 18th that permits the company to buyback $200.00 million in outstanding shares. This buyback authorization permits the technology company to purchase up to 9.2% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other news, CEO Edward Meyercord sold 35,725 shares of the firm’s stock in a transaction that occurred on Monday, February 3rd. The shares were sold at an average price of $15.39, for a total transaction of $549,807.75. Following the completion of the sale, the chief executive officer now owns 1,478,941 shares in the company, valued at $22,760,901.99. This trade represents a 2.36 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 3.70% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in EXTR. Impax Asset Management Group plc lifted its stake in shares of Extreme Networks by 41.5% in the 1st quarter. Impax Asset Management Group plc now owns 955,178 shares of the technology company’s stock valued at $12,637,000 after purchasing an additional 280,000 shares during the last quarter. Principal Financial Group Inc. raised its holdings in Extreme Networks by 3.0% in the 1st quarter. Principal Financial Group Inc. now owns 661,779 shares of the technology company’s stock valued at $8,755,000 after buying an additional 19,248 shares during the period. Teacher Retirement System of Texas acquired a new position in Extreme Networks in the first quarter valued at about $268,000. Avior Wealth Management LLC boosted its stake in Extreme Networks by 48.9% during the first quarter. Avior Wealth Management LLC now owns 13,998 shares of the technology company’s stock worth $185,000 after buying an additional 4,594 shares during the period. Finally, Byrne Asset Management LLC increased its position in shares of Extreme Networks by 115.6% during the first quarter. Byrne Asset Management LLC now owns 3,881 shares of the technology company’s stock valued at $51,000 after acquiring an additional 2,081 shares during the last quarter. 91.05% of the stock is currently owned by hedge funds and other institutional investors.

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.