Extreme Networks (NASDAQ:EXTR) Stock Price Up 18.7% Following Earnings Beat

Extreme Networks, Inc. (NASDAQ:EXTR)’s share price was up 18.7% during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $20.17 and last traded at $20.2450. Approximately 1,143,108 shares changed hands during mid-day trading, a decline of 38% from the average daily volume of 1,854,264 shares. The stock had previously closed at $17.05.

The technology company reported $0.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.24 by $0.02. Extreme Networks had a net margin of 0.75% and a return on equity of 75.56%. The company had revenue of $316.87 million during the quarter, compared to analysts’ expectations of $311.48 million. During the same period last year, the company posted $0.21 EPS. Extreme Networks’s revenue was up 11.4% on a year-over-year basis. Extreme Networks has set its Q4 2026 guidance at 0.280-0.300 EPS.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on EXTR. Needham & Company LLC dropped their price target on Extreme Networks from $24.00 to $21.00 and set a “buy” rating on the stock in a research report on Thursday, January 29th. Rosenblatt Securities reaffirmed a “buy” rating and set a $25.00 price objective on shares of Extreme Networks in a research report on Thursday, January 29th. UBS Group reiterated a “neutral” rating and set a $17.00 price objective on shares of Extreme Networks in a research note on Thursday, January 29th. Wall Street Zen downgraded Extreme Networks from a “strong-buy” rating to a “buy” rating in a report on Saturday. Finally, Weiss Ratings cut Extreme Networks from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, February 17th. Six equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Extreme Networks has a consensus rating of “Moderate Buy” and a consensus target price of $22.67.

Insider Buying and Selling

In other Extreme Networks news, CEO Edward Meyercord sold 50,000 shares of the stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $15.30, for a total transaction of $765,000.00. Following the sale, the chief executive officer directly owned 1,897,270 shares in the company, valued at approximately $29,028,231. This trade represents a 2.57% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 3.60% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Salomon & Ludwin LLC purchased a new stake in shares of Extreme Networks during the third quarter valued at $27,000. Caitong International Asset Management Co. Ltd bought a new stake in Extreme Networks in the 3rd quarter worth about $31,000. Rockefeller Capital Management L.P. raised its position in Extreme Networks by 313.7% in the 4th quarter. Rockefeller Capital Management L.P. now owns 1,957 shares of the technology company’s stock worth $33,000 after buying an additional 1,484 shares during the last quarter. CWM LLC raised its position in Extreme Networks by 44.8% in the 3rd quarter. CWM LLC now owns 2,095 shares of the technology company’s stock worth $43,000 after buying an additional 648 shares during the last quarter. Finally, Farther Finance Advisors LLC lifted its stake in Extreme Networks by 85.4% during the 3rd quarter. Farther Finance Advisors LLC now owns 2,201 shares of the technology company’s stock valued at $45,000 after acquiring an additional 1,014 shares during the period. 91.05% of the stock is owned by institutional investors.

Extreme Networks Stock Up 22.0%

The company’s 50 day simple moving average is $15.52 and its 200-day simple moving average is $16.51. The company has a current ratio of 0.95, a quick ratio of 0.80 and a debt-to-equity ratio of 1.61. The firm has a market cap of $2.79 billion, a P/E ratio of 292.81, a PEG ratio of 1.84 and a beta of 1.62.

Extreme Networks Company Profile

Extreme Networks, Inc (NASDAQ: EXTR) is a global provider of end-to-end networking solutions designed to support enterprise, data center, and service provider environments. The company’s product portfolio encompasses high-performance wired and wireless access switches, routers, network security appliances, and software-defined networking (SDN) tools. Driven by a cloud-native management architecture, Extreme’s Intelligent Edge Platform integrates network analytics, automation and orchestration capabilities to help organizations optimize performance, reduce operational complexity and strengthen security.

Since its founding in the mid-1990s and subsequent public listing in 1999, Extreme Networks has expanded its technology footprint through targeted acquisitions.