Extreme Networks (EXTR) Shares Gap Up on Earnings Beat

Shares of Extreme Networks, Inc (NASDAQ:EXTR) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $5.61, but opened at $5.87. Extreme Networks shares last traded at $6.54, with a volume of 4345100 shares.

The technology company reported $0.08 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.03 by $0.05. Extreme Networks had a positive return on equity of 43.70% and a negative net margin of 4.76%. The company had revenue of $239.89 million for the quarter, compared to analyst estimates of $233.36 million. During the same quarter last year, the firm earned $0.16 EPS. Extreme Networks’s revenue for the quarter was up 13.3% compared to the same quarter last year.

Several analysts have recently weighed in on EXTR shares. ValuEngine raised Extreme Networks from a “strong sell” rating to a “sell” rating in a report on Friday, October 19th. Cowen lowered Extreme Networks from an “outperform” rating to a “market perform” rating and decreased their price objective for the stock from $16.00 to $6.50 in a report on Thursday, August 9th. Zacks Investment Research lowered Extreme Networks from a “hold” rating to a “sell” rating in a report on Tuesday, August 14th. JMP Securities decreased their price target on Extreme Networks from $12.00 to $9.00 and set a “market outperform” rating on the stock in a research note on Thursday, August 9th. Finally, BidaskClub lowered Extreme Networks from a “hold” rating to a “sell” rating in a research note on Friday, September 14th. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating and three have assigned a buy rating to the stock. Extreme Networks presently has an average rating of “Hold” and an average target price of $11.75.

A number of hedge funds have recently made changes to their positions in the stock. BlackRock Inc. boosted its stake in Extreme Networks by 5.7% in the 2nd quarter. BlackRock Inc. now owns 15,963,564 shares of the technology company’s stock valued at $127,071,000 after buying an additional 855,965 shares in the last quarter. Paradigm Capital Management Inc. NY acquired a new stake in Extreme Networks in the 2nd quarter valued at $47,680,000. FMR LLC boosted its stake in Extreme Networks by 925.2% in the 2nd quarter. FMR LLC now owns 3,381,200 shares of the technology company’s stock valued at $26,914,000 after buying an additional 3,051,400 shares in the last quarter. State of New Jersey Common Pension Fund D acquired a new stake in Extreme Networks in the 3rd quarter valued at $8,768,000. Finally, Royce & Associates LP boosted its stake in Extreme Networks by 68.7% in the 2nd quarter. Royce & Associates LP now owns 1,577,861 shares of the technology company’s stock valued at $12,560,000 after buying an additional 642,600 shares in the last quarter. 81.60% of the stock is currently owned by institutional investors and hedge funds.

The company has a quick ratio of 1.01, a current ratio of 1.19 and a debt-to-equity ratio of 1.67. The company has a market cap of $604.62 million, a P/E ratio of 14.88, a price-to-earnings-growth ratio of 1.01 and a beta of 1.01.

Extreme Networks Company Profile (NASDAQ:EXTR)

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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