The stock of Extreme Networks Inc. (NASDAQ:EXTR) increased by $0.1 on Tuesday to finish at $24.31, up 0.41 percent. The last five days have seen an average of 3,219,460 shares of common stock traded. 21 times new highs were reached in the current year, with a gain of $6.00. The average number of shares traded over the last 20 days was 2,475,990, while the average volume over the last 50 days totaled 2,202,386.
EXTR stock dropped -13.70% since last month. On 08/25/23, the company’s shares reached a one-month low of $22.86. The stock touched a high of $32.73 on 08/10/23, after rallying from a low of $12.09 in 52 weeks. The price of EXTR stock has risen by 32.77% or $6.00 this year, reaching a new high 21 times. Still, the stock price is down -25.73% from the 52-week high.
Insider Transactions
EXTR stock investors should be aware that Extreme Networks Inc. (EXTR) stock had its last reported insider trading activity 5 days ago on Sep 15. On Sep 15, Chief Revenue Officer Vitalone Joseph A sold 45,090 shares at $23.71 each. This transaction resulted in the insider making $1,068,971. On Aug 09, Khanna Raj sold 10,000 shares at a price of US$30.87. After the transaction, the insider now owns 227,267 shares. PRESIDENT AND CEO MEYERCORD EDWARD had earlier sold 100,000 shares on Jun 07 for $23.05 a share. The transaction was completed for $2,304,910.
Valuation Metrics
Extreme Networks Inc. (EXTR) has a trailing price-to-earnings (P/E) ratio of 41.56. Beta for the stock is 2.05. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 2.44, the price-to-book (PB) ratio of 26.71, and the price-to-cash flow ratio of 13.63.
Financial Health
For the three months ended June 29, Extreme Networks Inc.’s quick ratio was 0.80, 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 1.61, and the total debt to equity ratio is 1.90. As far as profitability goes, gross margin for the trailing twelve months is 57.50% percent. Extreme Networks Inc.’s EBITDA margin for the year ended June 29 was 12.12%, whereas its operating margin stood at 8.20% for the same period. Based on annual data, it had gross profit of $754.72 million and revenue of $1.31 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 7.20%. There was a 27.20% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 75.20%.
Earnings Surprise
According to Extreme Networks Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $363.18 million, while revenues rose by 23.4% to $332.51 million. It was predicted that Extreme Networks Inc.’s quarterly earnings would be $0.33, but it ended up being $0.31, beating the consensus by 6.50%. EBITDA was $49.32 million for the quarter. At the end of Extreme Networks Inc.’s most recent quarter ended June 29, its liabilities totaled 1.02 billion, while its total debt was $264.61 million. Equity owned by shareholders amounts to $130.04 million.
Technical Picture
Here’s a quick look at Extreme Networks Inc.’s (EXTR) price momentum from a technical perspective. As of 19 September, the RSI 9-day stood at 31.54%, suggesting the stock is Neutral, with a 24.43% historical volatility rate.
The stochastic %K and %D were 18.42% and 20.01% respectively, while the average true range (ATR) was 1.02. Based on the 14-day stochastic reading of 22.37%, the RSI (14) reading is 35.27%. On the 9-day MACD Oscillator, the stock is at -0.67, and the 14-day reading is at -1.37.
Analyst Ratings
Extreme Networks Inc. (NASDAQ: EXTR) was downgraded by B. Riley Securities to a a Neutral rating in its latest research report. The stock was previously rated as a a Buy. Analysts have assigned Extreme Networks Inc. (EXTR) an Overweight rating. EXTR is a stock that is recommended for selling by 0 brokerage firms, while 2 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 4 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 $29.00 and $36.00, with a median target price of $35.00. In analyzing these forecasts, the average price target given by analysts for Extreme Networks Inc. (EXTR) is $33.29.
