Extreme Networks’ Rating Upgraded Thanks to Overreaction and Early Position Opening
December 7, 2023
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Extreme Networks ($NASDAQ:EXTR), a publically traded software and hardware networking company, recently had its rating upgraded due to an overreaction on their part. This upgrade was the result of their early positioning in the market, which allowed them to benefit from the upgraded rating. Their portfolio of products includes wireless networking, network security, network access control, and a variety of networking solutions for enterprises. Over the years, Extreme Networks has established itself as a leader in the industry and has been able to maintain its competitive edge. The recent rating upgrade is a testament to their commitment to staying ahead of the curve and adapting to the changing needs of their customers.
As a result of their early positioning, they were able to capitalize on the upgraded rating and benefit from a variety of positive returns. They have also been able to invest in new technologies and expand their customer base. Overall, the upgraded rating for Extreme Networks is a testament to their ability to innovate and stay ahead of the competition. Thanks to their early positioning in the market, they were able to capitalize on the upgrade and reap the rewards.
Stock Price
On Tuesday, Extreme Networks‘ stock opened at $16.3 and closed at $16.1, a decrease of 1.2% from its last closing price of 16.3. This seemingly small drop in price, however, was enough to trigger a major upgrade from investment analysts. The analysts had initially assigned Extreme Networks with a “sell” rating, but their opinion shifted after the stock’s dip caused by an overreaction and early position opening. They now rate the company as “hold”, citing the company’s strong commitment to innovation and customer service as reasons for the shift in opinion.
The upgrade is good news for Extreme Networks, as it indicates that investors may have overreacted to the company’s performance and that the company is still confident that it will be able to deliver strong results in the future. This upgrade should help bolster Extreme Networks’ stock price in the weeks and months to come. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Extreme Networks. More…
| Total Revenues | Net Income | Net Margin |
| 1.37k | 94.17 | 7.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Extreme Networks. More…
| Operations | Investing | Financing |
| 275.11 | -14.97 | -234.12 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Extreme Networks. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.11k | 998.03 | 0.84 |
Key Ratios Snapshot
Some of the financial key ratios for Extreme Networks are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.8% | 17.8% | 9.6% |
| FCF Margin | ROE | ROA |
| 19.0% | 72.6% | 7.4% |
Analysis
GoodWhale has conducted an analysis of Extreme Networks‘ financials and has concluded that it has a high health score of 7/10 due to its impressive cashflows and debt. This indicates that Extreme Networks is capable of sustaining its future operations in times of crisis. In addition, GoodWhale has classified Extreme Networks as a ‘gorilla’ company, defined as a company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Given Extreme Networks’ strong assets, growth, and profitability, it is likely to attract the attention of many investors who are looking for quality investments. However, investors looking for stocks with high dividend yields may be disappointed, as Extreme Networks does not have a particularly high dividend yield. More…
Peers
The company’s products are designed to meet the most demanding networking challenges. Extreme Networks Inc has a strong focus on innovation and customer satisfaction. The company’s products are backed by a team of highly skilled and experienced professionals. Extreme Networks Inc is a publicly traded company on the Nasdaq Stock Market under the ticker symbol EXTR.
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Summary
Extreme Networks is an American networking company that provides software-driven networking solutions to enterprise, data center and service provider customers. Recently, the company has been receiving positive ratings upgrades from analysts, primarily due to its strong market position and innovation in the networking space. Investors have reacted positively to these upgrades, resulting in increased interest in Extreme Networks’ stock.
Analysts have also highlighted the company’s cost-effectiveness, scalability, and security capabilities as key drivers for future growth. These factors, combined with cost-cutting initiatives and continued product innovation, have made Extreme Networks a very attractive investment opportunity for both short-term and long-term investors.
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