Needham & Company LLC Has Lowered Expectations for Extreme Networks (NASDAQ:EXTR) Stock Price

Extreme Networks (NASDAQ:EXTR) had its price objective cut by analysts at Needham & Company LLC from $38.00 to $35.00 in a report issued on Wednesday,Benzinga reports. The firm presently has a “buy” rating on the technology company’s stock. Needham & Company LLC’s price target points to a potential upside of 33.52% from the stock’s current price.

Other analysts also recently issued reports about the company. UBS Group set a $28.00 price objective on Extreme Networks in a report on Thursday, April 30th. Lake Street Capital raised their target price on shares of Extreme Networks from $25.00 to $34.00 and gave the company a “buy” rating in a research report on Monday, June 15th. Wall Street Zen lowered shares of Extreme Networks from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 18th. Rosenblatt Securities upped their price target on shares of Extreme Networks from $29.00 to $39.00 and gave the stock a “buy” rating in a research report on Thursday, June 11th. Finally, B. Riley Financial reiterated a “buy” rating on shares of Extreme Networks in a research note on Thursday, April 30th. Six equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $32.33.

Extreme Networks Trading Down 18.9%

NASDAQ:EXTR traded down $6.13 during midday trading on Wednesday, hitting $26.21. The stock had a trading volume of 3,918,065 shares, compared to its average volume of 2,078,993. The stock has a 50-day moving average of $30.37 and a 200 day moving average of $21.73. The company has a market capitalization of $3.43 billion, a price-to-earnings ratio of 218.45, a PEG ratio of 1.84 and a beta of 1.79. Extreme Networks has a one year low of $13.48 and a one year high of $33.73. The company has a quick ratio of 0.78, a current ratio of 0.91 and a debt-to-equity ratio of 1.89.

Extreme Networks (NASDAQ:EXTR) last issued its earnings results on Wednesday, August 5th. The technology company reported $0.32 earnings per share for the quarter, beating analysts’ consensus estimates of $0.29 by $0.03. Extreme Networks had a return on equity of 81.88% and a net margin of 1.30%.The business had revenue of $338.55 million during the quarter, compared to analyst estimates of $332.49 million. During the same period in the previous year, the company posted $0.25 EPS. Extreme Networks’s revenue was up 10.3% on a year-over-year basis. Extreme Networks has set its FY 2027 guidance at 1.280-1.330 EPS and its Q1 2027 guidance at 0.270-0.290 EPS. As a group, sell-side analysts forecast that Extreme Networks will post 0.53 EPS for the current year.

Insider Activity

In other news, CEO Edward Meyercord sold 50,000 shares of Extreme Networks stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $29.79, for a total value of $1,489,500.00. Following the transaction, the chief executive officer 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 position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kathleen M. Holmgren sold 19,521 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $24.78, for a total transaction of $483,730.38. Following the sale, the director directly owned 219,308 shares of the company’s stock, valued at $5,434,452.24. The trade was a 8.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 422,182 shares of company stock valued at $11,905,205 over the last 90 days. 3.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of EXTR. Alyeska Investment Group L.P. raised its holdings in shares of Extreme Networks by 301.9% in the fourth quarter. Alyeska Investment Group L.P. now owns 2,971,718 shares of the technology company’s stock worth $49,479,000 after buying an additional 2,232,373 shares during the last quarter. Jain Global LLC purchased a new position in Extreme Networks in the 4th quarter worth $17,361,000. SEB Asset Management AB acquired a new stake in Extreme Networks during the 1st quarter worth about $12,192,000. Millennium Management LLC lifted its position in Extreme Networks by 163.0% during the 1st quarter. Millennium Management LLC now owns 1,260,362 shares of the technology company’s stock worth $16,675,000 after acquiring an additional 781,103 shares during the period. Finally, Glenmede Trust Co. NA purchased a new stake in Extreme Networks during the 1st quarter valued at about $10,129,000. Institutional investors and hedge funds own 91.05% of the company’s stock.

Key Stories Impacting Extreme Networks

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

• Positive Sentiment: Extreme Networks reported fiscal Q4 earnings of $0.32 per share, exceeding the $0.29 consensus estimate and improving from $0.25 a year earlier. Revenue reached $338.55 million, above expectations of $332.49 million and up 10.3% year over year. Extreme Networks Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Fiscal 2027 EPS guidance of $1.28 to $1.33 is above the $1.21 analyst consensus. First-quarter EPS guidance of $0.27 to $0.29 also exceeds the $0.26 consensus, while projected first-quarter revenue of $334 million to $339 million is ahead of expectations. Extreme Networks Reports Fourth Quarter and Fiscal Year 2026 Financial Results
• Neutral Sentiment: Analysts maintain a generally favorable view, with six Buy ratings and two Hold ratings and an average price target of $32.83. However, the stock’s high earnings multiple leaves limited room for disappointment.
• Negative Sentiment: CEO Edward Meyercord sold 50,000 shares worth approximately $1.49 million under a pre-arranged Rule 10b5-1 plan, reducing his direct holdings by 3.04%. Although scheduled sales do not necessarily signal deteriorating business conditions, the transaction can add short-term selling pressure. Extreme Networks CEO Sells 50,000 Shares
• Negative Sentiment: Investors may be taking profits after a substantial rally: Extreme Networks trades well above its 200-day moving average and at a very elevated reported P/E ratio. That positioning can cause a “sell-the-news” reaction even after an earnings beat, helping explain the stock’s decline.

About Extreme Networks

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.