Is Extreme Networks Inc. (EXTR) A Solid Choice On The Value Front?


The stock of Extreme Networks Inc. (NASDAQ:EXTR) increased by $0.56 on Monday to $14.77, up 3.98 percent. The last five days have seen an average of 881,605 shares of common stock traded. 1 time new highs were reached in the current year, with a fall of -$1.00. The average number of shares traded over the last 20 days was 1,152,521, while the average volume over the last 50 days totaled 1,208,444.

EXTR stock appreciated 9.56% since last month. On 08/01/22, the company’s shares reached a one-month low of $12.63. The stock touched a high of $16.60 on 01/03/22, after rallying from a low of $8.49 in 52 weeks. The price of EXTR stock has declined by -9.49% or -$1.00 this year, reaching a new high 1 time. Still, the stock price is down -11.02% from the 52-week high.

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Insider Transactions

There have been 28 days since Extreme Networks Inc. (EXTR) last reported insider trading activity on Aug 01. On Aug 01, EVP Chief Financial Officer Thomas Remi sold 10,000 shares at $12.79 each. This transaction resulted in the insider making $127,936. On Aug 01, Vitalone Joseph A sold 46,682 shares at a price of US$12.83. After the transaction, the insider now owns 44,979 shares. EVP Chief Financial Officer Thomas Remi had earlier sold 10,000 shares on Jul 01 for $8.83 a share. The transaction was completed for $88,300.

Valuation Metrics

Extreme Networks Inc. (EXTR) has a trailing price-to-earnings (P/E) ratio of 42.80. Beta for the stock is 2.13. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 1.67, the price-to-book (PB) ratio of 18.70, and the price-to-cash flow ratio of 14.46.

Financial Health

For the three months ended June 29, Extreme Networks Inc.’s quick ratio was 0.90, while its current ratio was 1.00, indicating its inability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 2.81, and the total debt to equity ratio is 3.13. As far as profitability goes, gross margin for the trailing twelve months is 56.60% percent. Extreme Networks Inc.’s operating margin stood at 5.90% for the same period. Based on annual data, it had gross profit of $629.94 million and revenue of $1.11 billion.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. EXTR’s return on assets (ROA) during the last 12 months has been 3.90%. There was a 6.60% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 53.90%.

Earnings Surprise

According to Extreme Networks Inc.’s quarterly financial report for the quarter that ended June 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $285.51 million, while revenues rose by 11.25% to $280.93 million. It was predicted that Extreme Networks Inc.’s quarterly earnings would be $0.15, but it ended up being $0.14, beating the consensus by 7.10%. At the end of Extreme Networks Inc.’s most recent quarter ended June 29, its liabilities totaled 978.17 million, while its total debt was $351.13 million.

Technical Picture

Here’s a quick look at Extreme Networks Inc.’s (EXTR) price momentum from a technical perspective. As of 26 August, the RSI 9-day stood at 68.20%, suggesting the stock is Neutral, with a 53.90% historical volatility rate.

The stochastic %K and %D were 85.57% and 77.87% respectively, while the average true range (ATR) was 0.54. Based on the 14-day stochastic reading of 93.53%, the RSI (14) reading is 67.54%. On the 9-day MACD Oscillator, the stock is at 0.36, and the 14-day reading is at 0.48.

Analyst Ratings

In its analyst report released on July 13, 2022, Rosenblatt began covering Extreme Networks Inc. (NASDAQ: EXTR). The stock was rated as a Buy by the brokerage firm. Analysts have assigned Extreme Networks Inc. (EXTR) an Buy rating. EXTR is a stock that is recommended for selling by 0 brokerage firms, while 1 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 5 others recommend it as a buy.

What is EXTR’s price target for the next 12 months?

The current consensus forecast for the stock is between $13.00 and $19.00, with a median target price of $15.00. In analyzing these forecasts, the average price target given by analysts for Extreme Networks Inc. (EXTR) is $15.75.


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