As of Wednesday close, Extreme Networks Inc.’s (NASDAQ:EXTR) stock was up $0.2, moving up 0.76 percent to $26.35. The average number of shares traded per day over the past five days has been 3,468,140 shares. 1 time new highs have been achieved over the past 5 days, with a -$1.75 fall in that time frame. In the last twenty days, the average volume was 2,361,205, while in the previous 50 days, it was 2,200,276.
Since last month, EXTR stock retreated -5.39%. Shares of the company fell to $22.86 on 08/25/23, the lowest level in the past month. A 52-week high of $32.73 was reached on 08/10/23 after having rallying from a 52-week low of $12.09. Since the beginning of this year, EXTR’s stock price has risen by 43.91% or $8.04, and marked a new high 21 times. However, the stock has declined by -19.49% since its 52-week high.
EXTR stock investors should be aware that Extreme Networks Inc. (EXTR) stock had its last reported insider trading activity 22 days ago on Aug 09. Khanna Raj, the Director of the company, disposed of 10,000 shares for $30.87 on Aug 09. It resulted in a $308,678 divestment by the insider. MEYERCORD EDWARD sold 100,000 shares at an average price of $23.05 on Jun 07. The insider now owns 610,385 shares following the transaction. On Jun 02, PRESIDENT AND CEO MEYERCORD EDWARD sold 167,587 shares at $21.18 apiece. The transaction was valued at $3,548,860.
Valuation Metrics
Right now, Extreme Networks Inc. (EXTR) has a P/E ratio of about 44.97. The stock’s beta is 2.05. Besides these, the trailing price-to-sales (P/S) ratio of 2.82, the price-to-book (PB) ratio of 32.94, and the price-to-cash flow ratio of 21.67 may also be considered.
Financial Health
In the three months ended June 29, Extreme Networks Inc.’s quick ratio stood at 0.80, while its current ratio was 1.00, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 1.92, and the total debt-to-equity ratio was 2.27. On the profitability front, the trailing twelve-month gross margin is 57.50% percent. In the year ended June 29, EBITDA margin amounted to 12.12%, whereas operating margins totaled 5.20%. Based on annual data, EXTR earned $754.72 million in gross profit and brought in $1.31 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 14.30%. Return on equity (ROE) for the past 12 months was 50.20%.
In Extreme Networks Inc.’s quarter-end financial report for June 29, it reported total debt of $187.59 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. EXTR’s revenue rose 23.4% to $332.51 million during the quarter, while net income inched up to $363.18 million. While analysts expected Extreme Networks Inc. to report $0.31 quarterly earnings, the actual figure was $0.33 per share, beating the consensus estimate by 6.50%. During the quarter, the company generated $49.32 million in EBITDA. The liabilities of Extreme Networks Inc. were 1.02 billion at the end of its most recent quarter ended June 29, and its total debt was $264.61 million. The value of shareholders’ equity is $130.04 million.
Technical Picture
This quick technical analysis looks at Extreme Networks Inc.’s (EXTR) price momentum. With a historical volatility rate of 54.25%, the RSI 9-day stood at 36.85% on 30 August.
With respect to its five-day moving average, the current Extreme Networks Inc. price is down by -6.23% percent or -$1.75. At present, EXTR shares trade -12.81% below its 20-day simple moving average and +39.79% percent above its 100-day simple moving average. However, the stock is currently trading approximately +7.11% above its SMA50 and +43.83% above its SMA200.
Stochastic coefficient K was 31.29% and Stochastic coefficient D was 25.85%, while ATR was 1.39. Given the Stochastic reading of 35.91% for the 14-day period, the RSI (14) reading has been calculated as 41.12%. As of today, the MACD Oscillator reading stands at -1.07, while the 14-day reading stands at -2.37.
Analyst Ratings
Extreme Networks Inc. downgraded its rating on Extreme Networks Inc. (NASDAQ: EXTR) to a Neutral in a note to investors on August 03, 2023. The analysts firm previously had a Buy rating on the stock.Extreme Networks Inc. (EXTR) has been rated Overweight by analysts. According to 0 brokerage firms, EXTR is a sell, and 2 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Extreme Networks Inc. stock as buy, with 5 recommending it as overweight.
With a median target price of $35.00, the current consensus forecast for the stock is $29.00 – $36.00. Based on these forecasts, analysts predict Extreme Networks Inc. (EXTR) will achieve an average price target of $33.29.
