Extreme Networks (NASDAQ:EXTR) Reaches New 1-Year Low - Should You Sell?

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

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on EXTR shares. Needham & Company LLC restated a "buy" rating and set a $20.00 price target on shares of Extreme Networks in a report on Thursday, January 30th. StockNews.com upgraded shares of Extreme Networks from a "hold" rating to a "buy" rating in a report on Thursday, December 19th. Lake Street Capital boosted their price objective 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. Finally, Rosenblatt Securities reiterated a "buy" rating and set a $22.00 target price on shares of Extreme Networks in a research note on Friday, February 7th. One equities research analyst has rated the stock with a hold rating and five have given a buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $20.30.

Extreme Networks Stock Up 13.3 %

The company has a fifty day moving average of $14.66 and a 200 day moving average of $15.73. 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 market cap of $1.63 billion, a P/E ratio of -13.06, a price-to-earnings-growth ratio of 3.06 and a beta of 1.57.

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Extreme Networks (NASDAQ:EXTR - Get Free Report) last posted its quarterly earnings data on Wednesday, January 29th. The technology company reported $0.11 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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%. On average, research analysts anticipate that Extreme Networks, Inc. will post 0.31 earnings per share for the current fiscal year.

Extreme Networks declared that its board has approved a stock repurchase program on Tuesday, February 18th that authorizes the company to repurchase $200.00 million in outstanding shares. This repurchase authorization authorizes the technology company to buy up to 9.2% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's leadership believes its shares are undervalued.

Insider Activity

In other Extreme Networks news, CEO Edward Meyercord sold 35,725 shares of the firm's stock in a transaction that occurred on Monday, February 3rd. The shares were sold at an average price of $15.39, for a total transaction of $549,807.75. Following the sale, the chief executive officer now owns 1,478,941 shares in the company, valued at approximately $22,760,901.99. This trade represents a 2.36 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 3.70% of the company's stock.

Institutional Trading of Extreme Networks

Hedge funds and other institutional investors have recently modified their holdings of the company. Barrow Hanley Mewhinney & Strauss LLC raised its holdings in Extreme Networks by 397,835.5% during the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 2,276,191 shares of the technology company's stock valued at $38,103,000 after acquiring an additional 2,275,619 shares during the period. LMR Partners LLP bought a new position in Extreme Networks in the 4th quarter worth approximately $16,573,000. JPMorgan Chase & Co. raised its position in shares of Extreme Networks by 312.1% during the fourth quarter. JPMorgan Chase & Co. now owns 1,199,399 shares of the technology company's stock valued at $20,078,000 after buying an additional 908,336 shares during the last quarter. Penn Capital Management Company LLC purchased a new position in shares of Extreme Networks in the fourth quarter worth $14,229,000. Finally, Vanguard Group Inc. boosted its position in shares of Extreme Networks by 4.0% during the fourth quarter. Vanguard Group Inc. now owns 17,919,069 shares of the technology company's stock worth $299,965,000 after acquiring an additional 690,262 shares during the last quarter. 91.05% of the stock is owned by hedge funds and other institutional investors.

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.