Lake Street Capital Has Lowered Expectations for Extreme Networks (NASDAQ:EXTR) Stock Price

Extreme Networks (NASDAQ:EXTR) had its target price cut by analysts at Lake Street Capital from $16.00 to $15.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage presently has a “hold” rating on the technology company’s stock. Lake Street Capital’s price target suggests a potential upside of 7.22% from the company’s current price.

Several other equities analysts also recently commented on the company. UBS Group dropped their price objective on Extreme Networks from $16.50 to $15.00 and set a “neutral” rating on the stock in a research note on Thursday. Needham & Company LLC restated a “buy” rating and issued a $20.00 target price on shares of Extreme Networks in a research note on Wednesday. Finally, Rosenblatt Securities reissued a “buy” rating and set a $18.00 price objective on shares of Extreme Networks in a research note on Thursday. Two investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $18.58.

Extreme Networks Stock Performance

NASDAQ EXTR opened at $13.99 on Thursday. Extreme Networks has a twelve month low of $10.10 and a twelve month high of $19.24. The company has a quick ratio of 0.68, a current ratio of 0.93 and a debt-to-equity ratio of 3.34. The company has a market capitalization of $1.86 billion, a price-to-earnings ratio of -14.88, a PEG ratio of 3.06 and a beta of 1.57. The stock has a fifty day simple moving average of $13.34 and a 200 day simple moving average of $15.35.

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

Extreme Networks announced that its Board of Directors has initiated a share repurchase plan on Tuesday, February 18th that authorizes the company to repurchase $200.00 million in outstanding shares. This repurchase authorization authorizes the technology company to purchase up to 9.2% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

Insider Activity at Extreme Networks

In other news, CEO Edward Meyercord sold 35,725 shares of the stock in a transaction on Monday, February 3rd. The shares were sold at an average price of $15.39, for a total value of $549,807.75. Following the sale, the chief executive officer now owns 1,478,941 shares of the company’s stock, valued at approximately $22,760,901.99. This represents a 2.36 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 3.70% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Extreme Networks

A number of hedge funds have recently added to or reduced their stakes in the stock. Byrne Asset Management LLC bought a new position in shares of Extreme Networks during the 4th quarter worth approximately $30,000. Sterling Capital Management LLC boosted its holdings in Extreme Networks by 603.3% during the fourth quarter. Sterling Capital Management LLC now owns 1,941 shares of the technology company’s stock worth $32,000 after buying an additional 1,665 shares in the last quarter. Orion Capital Management LLC purchased a new position in shares of Extreme Networks in the 4th quarter valued at about $33,000. Smartleaf Asset Management LLC grew its stake in Extreme Networks by 385.1% in the 4th quarter. Smartleaf Asset Management LLC now owns 2,183 shares of the technology company’s stock valued at $37,000 after acquiring an additional 1,733 shares during the period. Finally, Quarry LP raised its position in shares of Extreme Networks by 42.1% during the 4th quarter. Quarry LP now owns 2,426 shares of the technology company’s stock worth $41,000 after purchasing an additional 719 shares during the last quarter. 91.05% of the stock is currently owned by institutional investors.

About Extreme Networks

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.