Extreme Networks (NASDAQ:EXTR) Stock Price Down 6.8% – Here’s What Happened

Shares of Extreme Networks, Inc. (NASDAQ:EXTR) dropped 6.8% during trading on Monday . The stock traded as low as $12.98 and last traded at $12.95. Approximately 226,462 shares were traded during trading, a decline of 84% from the average daily volume of 1,458,775 shares. The stock had previously closed at $13.90.

Wall Street Analyst Weigh In

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

Extreme Networks Stock Down 8.3 %

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 firm has a fifty day simple moving average of $15.45 and a 200-day simple moving average of $15.91. The firm has a market cap of $1.69 billion, a price-to-earnings ratio of -13.52, a P/E/G ratio of 3.06 and a beta of 1.72.

Extreme Networks (NASDAQ:EXTR) last announced its earnings results on Wednesday, January 29th. The technology company reported $0.11 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, sell-side analysts expect that Extreme Networks, Inc. will post 0.31 EPS for the current year.

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

Insider Buying and Selling at Extreme Networks

In other news, CEO Edward Meyercord sold 35,725 shares of the business’s stock in a transaction dated Monday, February 3rd. The shares were sold at an average price of $15.39, for a total value of $549,807.75. Following the completion of the sale, the chief executive officer now owns 1,478,941 shares of the company’s stock, valued at approximately $22,760,901.99. The trade was a 2.36 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 3.70% of the company’s stock.

Hedge Funds Weigh In On Extreme Networks

A number of hedge funds have recently bought and sold shares of EXTR. Barrow Hanley Mewhinney & Strauss LLC grew its holdings in shares of Extreme Networks by 397,835.5% during the 4th quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 2,276,191 shares of the technology company’s stock worth $38,103,000 after purchasing an additional 2,275,619 shares in the last quarter. LMR Partners LLP bought a new stake in Extreme Networks during the fourth quarter worth about $16,573,000. JPMorgan Chase & Co. lifted its position in Extreme Networks by 312.1% during the fourth quarter. JPMorgan Chase & Co. now owns 1,199,399 shares of the technology company’s stock worth $20,078,000 after purchasing an additional 908,336 shares during the period. Penn Capital Management Company LLC acquired a new stake in Extreme Networks during the fourth quarter worth about $14,229,000. Finally, Portolan Capital Management LLC increased 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 buying an additional 700,724 shares during the period. 91.05% of the stock is 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.