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

Extreme Networks (NASDAQ:EXTR)‘s stock had its “buy” rating restated by Needham & Company LLC in a research note issued on Wednesday, Benzinga reports. They currently have a $35.00 price target on the technology company’s stock. Needham & Company LLC‘s price objective would indicate a potential upside of 43.21% from the company’s previous close.

Several other equities research analysts have also issued reports on the stock. Weiss Ratings raised shares of Extreme Networks from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, October 16th. Wall Street Zen raised shares of Extreme Networks from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 8th. Rosenblatt Securities reissued a “buy” rating and issued a $38.00 price objective on shares of Extreme Networks in a research note on Thursday, October 22nd. Oppenheimer restated an “outperform” rating on shares of Extreme Networks in a research report on Thursday, August 6th. Finally, Craig Hallum reaffirmed a “buy” rating and set a $31.00 target price on shares of Extreme Networks in a research note on Thursday, August 6th. Seven analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $32.25.

Extreme Networks Stock Performance

Extreme Networks stock opened at $24.44 on Wednesday. Extreme Networks has a 12-month low of $13.48 and a 12-month high of $33.73. The company has a quick ratio of 0.81, a current ratio of 0.93 and a debt-to-equity ratio of 1.63. The business’s 50-day moving average price is $22.46 and its two-hundred day moving average price is $21.91. The stock has a market cap of $3.23 billion, a PE ratio of 78.84, a P/E/G ratio of 1.45 and a beta of 1.76.

Extreme Networks (NASDAQ:EXTR) last issued its earnings results on Wednesday, October 28th. The technology company reported $0.33 EPS for the quarter, topping the consensus estimate of $0.28 by $0.05. The firm had revenue of $341.09 million during the quarter, compared to the consensus estimate of $336.75 million. Extreme Networks had a return on equity of 88.88% and a net margin of 3.28%. The business’s quarterly revenue was up 10.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.22 earnings per share. As a group, analysts expect that Extreme Networks will post 0.75 earnings per share for the current fiscal year.

Insider Transactions at Extreme Networks

In other news, CEO Edward Meyercord sold 50,000 shares of the business’s stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $21.77, for a total transaction of $1,088,500.00. Following the sale, the chief executive officer directly owned 1,710,097 shares in the company, valued at approximately $37,228,811.69. The trade was a 2.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin 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 sale, the chief financial officer owned 196,803 shares in the company, valued at approximately $4,388,706.90. This represents a 9.98% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 121,825 shares of company stock worth $3,064,698 over the last three months. Insiders own 3.20% of the company’s stock.

Hedge Funds Weigh In On Extreme Networks

Several large investors have recently modified their holdings of the business. Integrated Wealth Concepts LLC bought a new stake in shares of Extreme Networks in the second quarter worth $25,000. Public Employees Retirement System of Ohio acquired a new stake in Extreme Networks in the second quarter valued at $28,000. CoreCap Advisors LLC increased its holdings in Extreme Networks by 72.3% in the third quarter. CoreCap Advisors LLC now owns 1,201 shares of the technology company’s stock valued at $26,000 after purchasing an additional 504 shares during the period. Nykredit A S bought a new position in Extreme Networks during the 2nd quarter worth $48,000. Finally, Rockefeller Capital Management L.P. raised its position in Extreme Networks by 313.7% during the 4th quarter. Rockefeller Capital Management L.P. now owns 1,957 shares of the technology company’s stock worth $33,000 after purchasing an additional 1,484 shares during the last quarter. Institutional investors own 91.05% of the company’s stock.

Key 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.