Extreme Networks (NASDAQ:EXTR) to Repurchase $200.00 million in Outstanding Stock

Extreme Networks (NASDAQ:EXTR) announced that its board has approved a share repurchase plan on Tuesday, February 18th, RTT News reports. The company plans to buyback $200.00 million in shares. This buyback authorization permits the technology company to reacquire up to 9.2% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on EXTR. Craig Hallum raised their target price on Extreme Networks from $17.00 to $22.50 and gave the stock a “buy” rating in a research report on Thursday, October 31st. StockNews.com upgraded shares of Extreme Networks from a “hold” rating to a “buy” rating in a research report on Thursday, December 19th. B. Riley boosted their price objective on shares of Extreme Networks from $18.00 to $21.00 and gave the company a “buy” rating in a research report on Thursday, October 31st. Lake Street Capital upped their price objective on Extreme Networks from $15.00 to $16.00 and gave the stock a “hold” rating in a research note on Thursday, January 30th. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $22.00 target price on shares of Extreme Networks in a research report on Friday, February 7th. One investment analyst has rated the stock with a hold rating and five have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $20.30.

Extreme Networks Stock Performance

EXTR opened at $15.85 on Friday. The firm has a market cap of $2.10 billion, a P/E ratio of -16.86, a PEG ratio of 3.15 and a beta of 1.73. Extreme Networks has a 1-year low of $10.49 and a 1-year high of $19.24. The company has a 50 day simple moving average of $16.76 and a two-hundred day simple moving average of $15.80. The company has a debt-to-equity ratio of 3.34, a current ratio of 0.93 and a quick ratio of 0.68.

Extreme Networks (NASDAQ:EXTR) last issued its earnings results on Wednesday, January 29th. The technology company reported $0.11 earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.07). Extreme Networks had a negative return on equity of 110.86% and a negative net margin of 11.98%. Equities analysts forecast that Extreme Networks will post 0.31 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Charles Carinalli sold 5,000 shares of Extreme Networks stock in a transaction dated Monday, November 25th. The stock was sold at an average price of $16.70, for a total value of $83,500.00. Following the sale, the director now directly owns 366,793 shares of the company’s stock, valued at approximately $6,125,443.10. The trade was a 1.34 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Edward Meyercord sold 35,725 shares of the stock in a transaction that occurred on Monday, February 3rd. The shares were sold at an average price of $15.39, for a total value of $549,807.75. Following the transaction, the chief executive officer now directly owns 1,478,941 shares of the company’s stock, valued at approximately $22,760,901.99. The trade was a 2.36 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 3.70% of the stock is currently owned by company insiders.

Extreme Networks Company Profile

Extreme Networks, Inc delivers cloud-driven networking solutions that leverage the powers of machine learning, artificial intelligence, analytics, and automation.
The company designs, develops, and manufactures wired and wireless network infrastructure equipment and develops the software for network management, policy, analytics, security, and access controls.