Zacks Investment Research Lowers Extreme Networks (EXTR) to Sell

Extreme Networks (NASDAQ:EXTR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.

According to Zacks, “Extreme Networks, Inc. is a leading provider of a next generation of switching solutions that meet the increasing needs of enterprise local area networks internet service providers and content providers. The key advantages of its Layer 3 switching solutions are increased performance, the ability to easily grow in size as customer needs change, flexible allocation of network resources, ease of use and lower cost of ownership. These advantages are obtained through the use of custom semiconductors, known as ASICs, in its products and through hardware and software designs. “

Other equities research analysts have also issued reports about the stock. DA Davidson decreased their price target on shares of Extreme Networks to $13.00 and set a “buy” rating on the stock in a report on Thursday, August 9th. BidaskClub raised shares of Extreme Networks from a “hold” rating to a “buy” rating in a report on Wednesday, June 13th. Needham & Company LLC lowered shares of Extreme Networks from a “buy” rating to a “hold” rating in a report on Wednesday, August 8th. ValuEngine raised shares of Extreme Networks from a “sell” rating to a “hold” rating in a report on Thursday, August 2nd. Finally, JMP Securities decreased their price target on shares of Extreme Networks from $12.00 to $9.00 and set a “market outperform” rating on the stock in a report on Thursday, August 9th. Two investment analysts have rated the stock with a sell rating, three have issued a hold rating and three have issued a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and an average target price of $11.75.



Shares of Extreme Networks stock traded up $0.04 during midday trading on Tuesday, hitting $6.39. 2,427,200 shares of the company traded hands, compared to its average volume of 2,414,957. The firm has a market capitalization of $748.67 million, a PE ratio of 14.52, a price-to-earnings-growth ratio of 0.40 and a beta of 1.39. The company has a current ratio of 1.19, a quick ratio of 1.01 and a debt-to-equity ratio of 1.67. Extreme Networks has a 12 month low of $5.35 and a 12 month high of $15.55.

Extreme Networks (NASDAQ:EXTR) last announced its quarterly earnings results on Wednesday, August 8th. The technology company reported $0.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.19 by $0.01. The company had revenue of $278.30 million for the quarter, compared to analyst estimates of $279.22 million. Extreme Networks had a negative net margin of 4.76% and a positive return on equity of 43.70%. The firm’s revenue was up 55.6% on a year-over-year basis. During the same period in the previous year, the firm posted $0.17 EPS. research analysts anticipate that Extreme Networks will post 0.96 earnings per share for the current year.

In other Extreme Networks news, Director Raj Khanna bought 10,000 shares of Extreme Networks stock in a transaction on Thursday, May 24th. The shares were purchased at an average cost of $8.96 per share, with a total value of $89,600.00. Following the acquisition, the director now directly owns 109,523 shares of the company’s stock, valued at approximately $981,326.08. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Edward H. Kennedy bought 50,000 shares of Extreme Networks stock in a transaction on Friday, May 18th. The shares were acquired at an average cost of $9.03 per share, for a total transaction of $451,500.00. The disclosure for this purchase can be found here. Insiders have purchased a total of 110,000 shares of company stock worth $972,100 over the last ninety days. 1.90% of the stock is currently owned by insiders.

Institutional investors and hedge funds have recently bought and sold shares of the business. Raymond James Trust N.A. bought a new stake in Extreme Networks during the 2nd quarter worth approximately $141,000. Royal Bank of Canada grew its holdings in Extreme Networks by 29.3% during the 1st quarter. Royal Bank of Canada now owns 74,044 shares of the technology company’s stock worth $820,000 after acquiring an additional 16,790 shares during the last quarter. NJ State Employees Deferred Compensation Plan bought a new stake in Extreme Networks during the 2nd quarter worth approximately $796,000. Allianz Asset Management GmbH grew its holdings in Extreme Networks by 31.0% during the 1st quarter. Allianz Asset Management GmbH now owns 1,222,780 shares of the technology company’s stock worth $13,537,000 after acquiring an additional 289,570 shares during the last quarter. Finally, Wexford Capital LP bought a new stake in Extreme Networks during the 1st quarter worth approximately $2,214,000. 85.62% of the stock is currently owned by hedge funds and other institutional investors.

Extreme Networks Company Profile

Extreme Networks, Inc provides software-driven networking solutions for enterprise customers worldwide. 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.

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