Extreme Networks (NASDAQ:EXTR) Stock Crosses Above 200 Day Moving Average – What’s Next?

Extreme Networks, Inc. (NASDAQ:EXTR)’s share price crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $15.42 and traded as high as $16.94. Extreme Networks shares last traded at $16.69, with a volume of 742,413 shares traded.

Analysts Set New Price Targets

A number of research firms recently weighed in on EXTR. Lake Street Capital lowered their target price on shares of Extreme Networks from $16.00 to $15.00 and set a “hold” rating on the stock in a research note on Thursday, May 1st. UBS Group lowered their target price on shares of Extreme Networks from $16.50 to $15.00 and set a “neutral” rating on the stock in a research note on Thursday, May 1st. Rosenblatt Securities restated a “buy” rating and set a $18.00 target price on shares of Extreme Networks in a research note on Thursday, May 1st. Needham & Company LLC restated a “buy” rating and set a $20.00 target price on shares of Extreme Networks in a research note on Thursday, May 15th. Finally, Wall Street Zen upgraded shares of Extreme Networks from a “buy” rating to a “strong-buy” rating in a research note on Thursday, May 22nd. Two investment analysts have rated the stock with a hold rating, four have assigned a buy rating and one has assigned a strong 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 price target of $18.58.

Extreme Networks Stock Performance

The company has a debt-to-equity ratio of 3.34, a quick ratio of 0.68 and a current ratio of 0.93. The company has a market capitalization of $2.22 billion, a P/E ratio of -17.76, a P/E/G ratio of 3.06 and a beta of 1.73. The business’s fifty day simple moving average is $14.17 and its 200-day simple moving average is $15.42.

Extreme Networks (NASDAQ:EXTR) last announced its quarterly earnings results on Wednesday, April 30th. The technology company reported $0.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.19 by $0.02. The company had revenue of $284.51 million for the quarter, compared to the consensus estimate of $280.32 million. Extreme Networks had a negative net margin of 11.98% and a negative return on equity of 110.86%. Extreme Networks’s revenue for the quarter was up 34.8% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.19) EPS. As a group, equities analysts anticipate that Extreme Networks, Inc. will post 0.31 earnings per share for the current fiscal year.

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

Insider Transactions at Extreme Networks

In other news, CEO Edward Meyercord sold 35,725 shares of the business’s stock in a transaction dated Thursday, May 1st. The shares were sold at an average price of $13.73, for a total value of $490,504.25. Following the sale, the chief executive officer now directly owns 1,510,719 shares in the company, valued at $20,742,171.87. The trade was a 2.31% 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.

Institutional Trading of Extreme Networks

A number of large investors have recently made changes to their positions in EXTR. Sterling Capital Management LLC increased its holdings in shares of Extreme Networks by 603.3% in the 4th 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 during the last quarter. Orion Capital Management LLC bought a new stake in shares of Extreme Networks in the 4th quarter worth about $33,000. Smartleaf Asset Management LLC increased its holdings in shares of Extreme Networks by 385.1% in the 4th quarter. Smartleaf Asset Management LLC now owns 2,183 shares of the technology company’s stock worth $37,000 after buying an additional 1,733 shares during the last quarter. Quarry LP increased its holdings in shares of Extreme Networks by 42.1% in the 4th quarter. Quarry LP now owns 2,426 shares of the technology company’s stock worth $41,000 after buying an additional 719 shares during the last quarter. Finally, GAMMA Investing LLC grew its holdings in Extreme Networks by 105.6% during the 1st quarter. GAMMA Investing LLC now owns 3,170 shares of the technology company’s stock valued at $42,000 after purchasing an additional 1,628 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.