Extreme Networks (NASDAQ:EXTR) Hits New 1-Year Low – Time to Sell?

Extreme Networks, Inc. (NASDAQ:EXTR) shares hit a new 52-week low during trading on Friday . The stock traded as low as $10.17 and last traded at $10.62, with a volume of 639651 shares traded. The stock had previously closed at $11.62.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on EXTR. StockNews.com raised Extreme Networks from a “hold” rating to a “buy” rating in a research report on Thursday, December 19th. Needham & Company LLC reiterated a “buy” rating and set a $20.00 price target on shares of Extreme Networks in a research report on Thursday, January 30th. Lake Street Capital lifted their target price on shares of Extreme Networks from $15.00 to $16.00 and gave the stock a “hold” rating in a research report on Thursday, January 30th. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $22.00 price objective on shares of Extreme Networks in a research report on Friday, February 7th. One equities research analyst has rated the stock with a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $20.30.

Extreme Networks Stock Performance

The stock has a market capitalization of $1.46 billion, a price-to-earnings ratio of -11.73, a price-to-earnings-growth ratio of 3.06 and a beta of 1.72. The company has a quick ratio of 0.68, a current ratio of 0.93 and a debt-to-equity ratio of 3.34. The company has a 50 day simple moving average of $14.97 and a 200-day simple moving average of $15.82.

Extreme Networks (NASDAQ:EXTR) last issued its earnings results on Wednesday, January 29th. The technology company reported $0.11 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.07). Extreme Networks had a negative return on equity of 110.86% and a negative net margin of 11.98%. As a group, equities research analysts expect that Extreme Networks, Inc. will post 0.31 EPS for the current fiscal year.

Extreme Networks declared that its Board of Directors has initiated a share repurchase program on Tuesday, February 18th that permits the company to repurchase $200.00 million in outstanding shares. This repurchase authorization permits the technology company to purchase 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 shares are undervalued.

Insider Activity at Extreme Networks

In other news, CEO Edward Meyercord sold 35,725 shares of Extreme Networks 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 trade represents a 2.36 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 3.70% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Extreme Networks

Large investors have recently added to or reduced their stakes in the business. State of Alaska Department of Revenue raised its stake in shares of Extreme Networks by 1.0% in the fourth quarter. State of Alaska Department of Revenue now owns 75,095 shares of the technology company’s stock worth $1,257,000 after purchasing an additional 717 shares during the last quarter. Quarry LP lifted its stake in Extreme Networks by 42.1% during the 4th quarter. Quarry LP now owns 2,426 shares of the technology company’s stock valued at $41,000 after acquiring an additional 719 shares in the last quarter. Pacer Advisors Inc. boosted its holdings in Extreme Networks by 31.4% during the 4th quarter. Pacer Advisors Inc. now owns 3,104 shares of the technology company’s stock worth $52,000 after acquiring an additional 741 shares during the last quarter. Ironwood Investment Management LLC raised its holdings in shares of Extreme Networks by 0.7% in the fourth quarter. Ironwood Investment Management LLC now owns 107,741 shares of the technology company’s stock valued at $1,804,000 after purchasing an additional 782 shares during the last quarter. Finally, Arizona State Retirement System lifted its position in shares of Extreme Networks by 2.4% during the fourth quarter. Arizona State Retirement System now owns 38,299 shares of the technology company’s stock valued at $641,000 after purchasing an additional 881 shares in the last quarter. Institutional investors own 91.05% of the company’s stock.

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.