Extreme Networks (NASDAQ:EXTR) to Buyback $200.00 million in Outstanding Shares

Extreme Networks (NASDAQ:EXTR - Get Free Report) declared that its Board of Directors has authorized a stock buyback program on Tuesday, February 18th, RTT News reports. The company plans to buyback $200.00 million in outstanding shares. This buyback authorization allows the technology company to purchase up to 9.2% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board of directors believes its shares are undervalued.

Extreme Networks Stock Performance

EXTR traded down $0.63 during trading on Friday, reaching $15.22. 1,264,034 shares of the company's stock were exchanged, compared to its average volume of 1,027,633. The company has a debt-to-equity ratio of 3.34, a current ratio of 0.93 and a quick ratio of 0.68. Extreme Networks has a 1 year low of $10.49 and a 1 year high of $19.24. The company's fifty day simple moving average is $16.70 and its 200-day simple moving average is $15.82. The stock has a market capitalization of $2.02 billion, a P/E ratio of -16.19, a price-to-earnings-growth ratio of 3.10 and a beta of 1.73.

Extreme Networks (NASDAQ:EXTR - Get Free Report) 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, research analysts predict that Extreme Networks will post 0.31 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

EXTR has been the subject of a number of research analyst reports. B. Riley increased their price target on Extreme Networks from $18.00 to $21.00 and gave the company a "buy" rating in a research note on Thursday, October 31st. StockNews.com raised shares of Extreme Networks from a "hold" rating to a "buy" rating in a research report on Thursday, December 19th. Rosenblatt Securities reissued a "buy" rating and set a $22.00 target price on shares of Extreme Networks in a research report on Friday, February 7th. Needham & Company LLC reaffirmed a "buy" rating and issued a $20.00 price target on shares of Extreme Networks in a report on Thursday, January 30th. Finally, Craig Hallum lifted their price objective on shares of Extreme Networks from $17.00 to $22.50 and gave the stock a "buy" rating in a research note on Thursday, October 31st. One equities research analyst has rated the stock with a hold rating and five have given a buy rating to the company. According to MarketBeat, Extreme Networks presently has an average rating of "Moderate Buy" and an average price target of $20.30.

Insider Buying and Selling at Extreme Networks

In other news, Director Charles Carinalli sold 5,000 shares of the firm's stock in a transaction that occurred on Monday, November 25th. The shares were sold at an average price of $16.70, for a total transaction of $83,500.00. Following the sale, the director now owns 366,793 shares of the company's stock, valued at $6,125,443.10. This trade represents a 1.34 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Edward Meyercord sold 35,725 shares of the business's stock in a transaction 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 completion of the transaction, the chief executive officer now owns 1,478,941 shares of the company's stock, valued at approximately $22,760,901.99. This represents a 2.36 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 3.70% 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.