Extreme Networks (NASDAQ:EXTR) Downgraded to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of Extreme Networks (NASDAQ:EXTR) from a strong-buy rating to a hold rating in a research report sent to investors on Wednesday, Zacks.com reports.

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. “

Several other brokerages also recently weighed in on EXTR. ValuEngine downgraded Extreme Networks from a buy rating to a hold rating in a research report on Thursday, August 1st. BidaskClub cut Extreme Networks from a buy rating to a hold rating in a research report on Friday, September 20th. Finally, Lake Street Capital assumed coverage on Extreme Networks in a research report on Monday, July 29th. They set a buy rating and a $9.00 target price on the stock. Three equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. The stock has a consensus rating of Hold and a consensus target price of $10.33.

Shares of NASDAQ EXTR traded up $0.35 during mid-day trading on Wednesday, hitting $7.30. The stock had a trading volume of 1,676,798 shares, compared to its average volume of 1,291,903. The company has a debt-to-equity ratio of 1.46, a quick ratio of 1.06 and a current ratio of 1.24. The company has a 50 day moving average of $7.17 and a two-hundred day moving average of $6.96. Extreme Networks has a twelve month low of $4.81 and a twelve month high of $8.59. The firm has a market cap of $886.01 million, a PE ratio of 56.15 and a beta of 1.62.

Extreme Networks (NASDAQ:EXTR) last announced its quarterly earnings results on Wednesday, July 31st. The technology company reported ($0.01) earnings per share for the quarter, topping the consensus estimate of ($0.02) by $0.01. The company had revenue of $252.40 million for the quarter, compared to the consensus estimate of $244.72 million. Extreme Networks had a positive return on equity of 10.98% and a negative net margin of 2.60%. The firm’s revenue for the quarter was down 9.3% compared to the same quarter last year. During the same period last year, the firm earned $0.20 EPS. Equities research analysts predict that Extreme Networks will post 0.43 EPS for the current fiscal year.

In other Extreme Networks news, CRO Robert J. Gault sold 39,584 shares of the firm’s stock in a transaction that occurred on Monday, September 16th. The shares were sold at an average price of $7.73, for a total value of $305,984.32. Following the transaction, the executive now directly owns 294,797 shares of the company’s stock, valued at approximately $2,278,780.81. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Edward Meyercord sold 100,000 shares of the firm’s stock in a transaction that occurred on Friday, August 2nd. The stock was sold at an average price of $8.22, for a total transaction of $822,000.00. Following the completion of the transaction, the insider now directly owns 482,416 shares in the company, valued at $3,965,459.52. The disclosure for this sale can be found here. Company insiders own 2.62% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. increased its holdings in shares of Extreme Networks by 1.9% during the 2nd quarter. BlackRock Inc. now owns 16,403,080 shares of the technology company’s stock worth $106,129,000 after buying an additional 301,442 shares during the last quarter. Vanguard Group Inc. increased its holdings in Extreme Networks by 6.1% in the 2nd quarter. Vanguard Group Inc. now owns 8,623,647 shares of the technology company’s stock valued at $55,794,000 after purchasing an additional 498,962 shares during the last quarter. Paradigm Capital Management Inc. NY increased its holdings in Extreme Networks by 0.6% in the 2nd quarter. Paradigm Capital Management Inc. NY now owns 6,778,800 shares of the technology company’s stock valued at $43,859,000 after purchasing an additional 38,500 shares during the last quarter. D. E. Shaw & Co. Inc. increased its holdings in Extreme Networks by 44.7% in the 2nd quarter. D. E. Shaw & Co. Inc. now owns 4,754,084 shares of the technology company’s stock valued at $30,759,000 after purchasing an additional 1,468,606 shares during the last quarter. Finally, FMR LLC increased its holdings in Extreme Networks by 7.6% in the 1st quarter. FMR LLC now owns 3,623,714 shares of the technology company’s stock valued at $27,142,000 after purchasing an additional 255,096 shares during the last quarter. Institutional investors and hedge funds own 80.27% of the company’s stock.

Extreme Networks Company Profile

Extreme Networks, Inc provides software-driven networking solutions for enterprise customers worldwide. It designs, develops, and manufactures wired and wireless network infrastructure equipment; and develops the software for network management, policy, analytics, security, and access controls. The company offers edge/access Ethernet switching systems that deliver Ethernet connectivity for edge of the network; aggregation/core Ethernet switching systems for aggregation, top-of-rack, and campus core environments; data center switching systems for enterprises and cloud data centers; and wireless access point products, as well as distributed Wi-Fi networks.

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