Extreme Networks (NASDAQ:EXTR) Shares Down 6.8% – Should You Sell?

Extreme Networks, Inc. (NASDAQ:EXTR) shares traded down 6.8% on Monday . The stock traded as low as $12.98 and last traded at $12.95. 226,462 shares changed hands during mid-day trading, a decline of 84% from the average session volume of 1,458,775 shares. The stock had previously closed at $13.90.

Wall Street Analyst Weigh In

EXTR has been the subject of several recent analyst reports. StockNews.com raised shares of Extreme Networks from a “hold” rating to a “buy” rating in a report on Thursday, December 19th. Needham & Company LLC restated a “buy” rating and issued a $20.00 price objective on shares of Extreme Networks in a research report on Thursday, January 30th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $22.00 target price on shares of Extreme Networks in a research note on Friday, February 7th. Finally, Lake Street Capital raised their price target 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. One analyst has rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $20.30.

Extreme Networks Price Performance

The company has a current ratio of 0.93, a quick ratio of 0.68 and a debt-to-equity ratio of 3.34. The company has a fifty day moving average price of $15.28 and a two-hundred day moving average price of $15.89. The firm has a market cap of $1.74 billion, a P/E ratio of -13.97, a PEG ratio of 3.06 and a beta of 1.72.

Extreme Networks (NASDAQ:EXTR) last announced its quarterly earnings results on Wednesday, January 29th. The technology company reported $0.11 earnings per share for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.07). Extreme Networks had a negative net margin of 11.98% and a negative return on equity of 110.86%. Equities analysts anticipate that Extreme Networks, Inc. will post 0.31 earnings per share for the current year.

Extreme Networks announced that its board has approved a stock buyback plan on Tuesday, February 18th that permits the company to repurchase $200.00 million in outstanding shares. This repurchase authorization permits the technology company to buy up to 9.2% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board believes its stock is undervalued.

Insiders Place Their Bets

In other news, CEO Edward Meyercord sold 35,725 shares of the stock in a transaction dated 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 transaction, the chief executive officer now directly owns 1,478,941 shares in the company, valued at $22,760,901.99. This represents a 2.36 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 3.70% of the company’s stock.

Hedge Funds Weigh In On Extreme Networks

Several institutional investors and hedge funds have recently modified their holdings of EXTR. Charles Schwab Investment Management Inc. raised its stake in Extreme Networks by 0.7% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 1,159,633 shares of the technology company’s stock worth $17,429,000 after purchasing an additional 8,169 shares in the last quarter. Verition Fund Management LLC bought a new stake in shares of Extreme Networks in the third quarter valued at approximately $2,113,000. Edgestream Partners L.P. acquired a new stake in Extreme Networks during the third quarter worth approximately $1,758,000. Centiva Capital LP bought a new position in Extreme Networks during the 3rd quarter worth $676,000. Finally, Portolan Capital Management LLC raised its holdings in Extreme Networks by 194.6% in the 3rd quarter. Portolan Capital Management LLC now owns 1,060,828 shares of the technology company’s stock valued at $15,944,000 after acquiring an additional 700,724 shares in the last quarter. 91.05% of the stock is currently owned by institutional investors and hedge funds.

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.