Extreme Networks Inc. (NASDAQ: EXTR) stock fell -1.49% on Friday to $23.86 against a previous-day closing price of $24.22. With 5.25 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.16 million shares. During the session, the Communication Equipment company that operates in wider Technology sector, reached to the highest price of $23.93 whereas the lowest price it dropped to was $23.27. The 52-week range on EXTR shows that it touched its highest point at $32.73 and its lowest point at $12.09 during that stretch. It currently has a 1-year price target of $33.29. Beta for the stock currently stands at 2.04.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of EXTR was down-trending over the past week, with a drop of -6.94%, but this was down by -18.20% over a month. Three-month performance dropped to -3.52% while six-month performance rose 34.95%. The stock gained 75.06% in the past year, while it has gained 30.31% so far this year. A look at the trailing 12-month EPS for EXTR yields 0.58 with Next year EPS estimates of 1.99. For the next quarter, that number is 0.31. This implies an EPS growth rate of 76.20% for this year and 27.91% for next year. EPS is expected to grow by 20.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 27.90%.
Float and Shares Shorts:
At present, 128.30 million EXTR shares are outstanding with a float of 126.83 million shares on hand for trading. On Aug 30, 2023, short shares totaled 10.79 million, which was 8.30% higher than short shares on Jul 30, 2023. In addition to Mr. Edward B. Meyercord III as the firm’s Pres, CEO & Exec. Director, Mr. Joseph A. Vitalone serves as its Chief Revenue Officer.
Institutional Ownership:
Through their ownership of 90.69% of EXTR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 45.20% of EXTR, in contrast to 42.13% held by mutual funds. Shares owned by individuals account for 19.10%. As the largest shareholder in EXTR with 12.02% of the stake, BlackRock Fund Advisors holds 15,629,854 shares worth 15,629,854. A second-largest stockholder of EXTR, The Vanguard Group, Inc., holds 10,649,382 shares, controlling over 8.19% of the firm’s shares. Paradigm Capital Management, Inc. is the third largest shareholder in EXTR, holding 5,240,900 shares or 4.03% stake. With a 4.49% stake in EXTR, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 5,838,562 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.10% of EXTR stock, is the second-largest Mutual Fund holder. It holds 4,029,468 shares valued at 110.61 million. iShares Russell 2000 ETF holds 2.17% of the stake in EXTR, owning 2,827,165 shares worth 77.61 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, EXTR reported revenue of $278.20M and operating income of $11.78M. The EBITDA in the recently reported quarter was $21.14M and diluted EPS was $0.04.
Analysts Ratings:
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for EXTR since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With EXTR analysts setting a high price target of $36.00 and a low target of $29.00, the average target price over the next 12 months is $33.29. Based on these targets, EXTR could surge 50.88% to reach the target high and rise by 21.54% to reach the target low. Reaching the average price target will result in a growth of 39.52% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded EXTR stock several times over the past three months with 11 Buys and 12 Sells. In these transactions, 919,261 shares were bought while 371,735 shares were sold. The number of buy transactions has increased to 36 while that of sell transactions has risen to 51 over the past year. The total number of shares bought during that period was 1,347,076 while 1,128,110 shares were sold.
