Extreme Networks (NASDAQ:EXTR) Stock Price Down 6.8% - What's Next?

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

Analyst Ratings Changes

Several analysts recently commented on the company. Rosenblatt Securities reaffirmed a "buy" rating and set a $22.00 target price on shares of Extreme Networks in a report on Friday, February 7th. 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. StockNews.com raised shares of Extreme Networks from a "hold" rating to a "buy" rating in a report on Thursday, December 19th. Finally, Lake Street Capital increased their price target 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. One investment analyst has rated the stock with a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $20.30.

Extreme Networks Stock Down 5.1 %

The business has a 50-day moving average price of $15.09 and a 200-day moving average price of $15.84. The stock has a market cap of $1.46 billion, a PE ratio of -11.73, a price-to-earnings-growth ratio of 3.06 and a beta of 1.72. The company has a current ratio of 0.93, a quick ratio of 0.68 and a debt-to-equity ratio of 3.34.

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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 the consensus estimate 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%. As a group, analysts forecast 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 program on Tuesday, February 18th that permits the company to buyback $200.00 million in shares. This buyback authorization permits the technology company to repurchase up to 9.2% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling at Extreme Networks

In related news, CEO Edward Meyercord sold 35,725 shares of the business's stock in a transaction that occurred on Monday, February 3rd. The stock was sold at an average price of $15.39, for a total transaction of $549,807.75. Following the completion of the sale, the chief executive officer now directly owns 1,478,941 shares in the company, 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 document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 3.70% of the company's stock.

Institutional Investors Weigh In On Extreme Networks

A number of large investors have recently modified their holdings of the business. Charles Schwab Investment Management Inc. boosted its position in Extreme Networks by 0.7% during the third quarter. Charles Schwab Investment Management Inc. now owns 1,159,633 shares of the technology company's stock worth $17,429,000 after acquiring an additional 8,169 shares during the last quarter. Verition Fund Management LLC purchased a new position in Extreme Networks in the 3rd quarter worth approximately $2,113,000. Centiva Capital LP acquired a new position in shares of Extreme Networks during the 3rd quarter worth approximately $676,000. Quarry LP acquired a new position in shares of Extreme Networks during the 3rd quarter worth approximately $26,000. Finally, State Street Corp grew its position in shares of Extreme Networks by 1.0% in the third quarter. State Street Corp now owns 5,134,008 shares of the technology company's stock valued at $77,164,000 after purchasing an additional 49,905 shares in the last quarter. Hedge funds and other institutional investors own 91.05% of the company's stock.

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.