Extreme Networks Stock Buy Hold or Sell Recommendation
EXTR Stock | USD 11.54 0.03 0.26% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Extreme Networks is 'Cautious Hold'. Macroaxis provides Extreme Networks buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding EXTR positions. The advice algorithm takes into account all of Extreme Networks' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Extreme Networks' buy or sell advice are summarized below:
Real Value 13.04 | Target Price 32.88 | Hype Value 11.54 | Market Value 11.54 | Naive Value 11.12 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Extreme Networks given historical horizon and risk tolerance towards Extreme Networks. When Macroaxis issues a 'buy' or 'sell' recommendation for Extreme Networks, the advice is generated through an automated system that utilizes algorithms and statistical models.
Extreme |
Execute Extreme Networks Buy or Sell Advice
The Extreme recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Extreme Networks. Macroaxis does not own or have any residual interests in Extreme Networks or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Extreme Networks' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Extreme Networks Trading Alerts and Improvement Suggestions
Extreme Networks generated a negative expected return over the last 90 days | |
Extreme Networks is unlikely to experience financial distress in the next 2 years | |
The company currently holds 264.61 M in liabilities with Debt to Equity (D/E) ratio of 3.89, implying the company greatly relies on financing operations through barrowing. Extreme Networks has a current ratio of 0.96, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Extreme Networks until it has trouble settling it off, either with new capital or with free cash flow. So, Extreme Networks' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Extreme Networks sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Extreme to invest in growth at high rates of return. When we think about Extreme Networks' use of debt, we should always consider it together with cash and equity. | |
Over 94.0% of Extreme Networks shares are held by institutions such as insurance companies | |
Latest headline from MacroaxisInsider: Disposition of 31240 shares by Katayoun Motiey of Extreme Networks subject to Rule 16b-3 |
Extreme Networks Returns Distribution Density
The distribution of Extreme Networks' historical returns is an attempt to chart the uncertainty of Extreme Networks' future price movements. The chart of the probability distribution of Extreme Networks daily returns describes the distribution of returns around its average expected value. We use Extreme Networks price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Extreme Networks returns is essential to provide solid investment advice for Extreme Networks.
Mean Return | -0.61 | Value At Risk | -4.69 | Potential Upside | 1.94 | Standard Deviation | 2.88 |
Return Density |
Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Extreme Networks historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Extreme Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Extreme Networks is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Extreme Networks backward and forwards among themselves. Extreme Networks' institutional investor refers to the entity that pools money to purchase Extreme Networks' securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares | Millennium Management Llc | 2023-12-31 | 2.3 M | Voss Capital Llc | 2023-12-31 | 2.2 M | Norges Bank | 2023-12-31 | 1.9 M | Boston Partners Global Investors, Inc | 2023-12-31 | 1.7 M | Nuveen Asset Management, Llc | 2023-12-31 | 1.7 M | Ameriprise Financial Inc | 2023-12-31 | 1.7 M | Jacobs Levy Equity Management, Inc. | 2023-09-30 | 1.7 M | Man Group Plc | 2023-12-31 | 1.6 M | Congress Asset Management Company, Llp | 2023-12-31 | 1.4 M | Blackrock Inc | 2023-12-31 | 18.3 M | Vanguard Group Inc | 2023-12-31 | 13 M |
Extreme Networks Cash Flow Accounts
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Change To Inventory | 20.0M | 22.7M | (16.7M) | (41.8M) | (48.1M) | (45.7M) | |
Change In Cash | 24.3M | 53.0M | (52.4M) | 40.3M | 46.3M | 48.7M | |
Free Cash Flow | 20.6M | 127.4M | 112.7M | 235.4M | 270.7M | 284.3M | |
Depreciation | 63.8M | 55.3M | 40.2M | 34.9M | 40.1M | 32.1M | |
Other Non Cash Items | 29.2M | 25.6M | 19.8M | 5.8M | 5.2M | 5.0M | |
Capital Expenditures | 15.3M | 17.2M | 15.4M | 13.8M | 12.4M | 13.2M | |
Net Income | (126.8M) | 1.9M | 44.3M | 78.1M | 89.8M | 94.3M | |
End Period Cash Flow | 193.9M | 246.9M | 194.5M | 234.8M | 270.0M | 283.6M | |
Change To Netincome | 52.4M | 50.3M | 63.9M | 57.4M | 66.0M | 69.3M | |
Investments | 45.2M | (17.2M) | (85.0M) | (13.8M) | (12.4M) | (13.0M) | |
Net Borrowings | 220.0M | (74M) | (38.1M) | (86.8M) | (78.1M) | (74.2M) |
Extreme Networks Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Extreme Networks or Communications Equipment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Extreme Networks' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Extreme stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.94 | |
β | Beta against NYSE Composite | 2.57 | |
σ | Overall volatility | 2.98 | |
Ir | Information ratio | -0.26 |
Extreme Networks Volatility Alert
Extreme Networks exhibits very low volatility with skewness of -4.13 and kurtosis of 24.6. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Extreme Networks' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Extreme Networks' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Extreme Networks Fundamentals Vs Peers
Comparing Extreme Networks' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Extreme Networks' direct or indirect competition across all of the common fundamentals between Extreme Networks and the related equities. This way, we can detect undervalued stocks with similar characteristics as Extreme Networks or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Extreme Networks' fundamental indicators could also be used in its relative valuation, which is a method of valuing Extreme Networks by comparing valuation metrics with those of similar companies.
Better Than Average | Worse Than Average | Compare Extreme Networks to competition |
Fundamentals | Extreme Networks | Peer Average |
Return On Equity | 0.83 | -0.31 |
Return On Asset | 0.0723 | -0.14 |
Profit Margin | 0.06 % | (1.27) % |
Operating Margin | 0.07 % | (5.51) % |
Current Valuation | 1.51 B | 16.62 B |
Shares Outstanding | 128.73 M | 571.82 M |
Shares Owned By Insiders | 2.64 % | 10.09 % |
Shares Owned By Institutions | 93.66 % | 39.21 % |
Number Of Shares Shorted | 11.34 M | 4.71 M |
Price To Earning | 57.61 X | 28.72 X |
Price To Book | 13.77 X | 9.51 X |
Price To Sales | 1.11 X | 11.42 X |
Revenue | 1.31 B | 9.43 B |
Gross Profit | 629.94 M | 27.38 B |
EBITDA | 149.62 M | 3.9 B |
Net Income | 78.07 M | 570.98 M |
Cash And Equivalents | 194.52 M | 2.7 B |
Cash Per Share | 1.48 X | 5.01 X |
Total Debt | 264.61 M | 5.32 B |
Debt To Equity | 3.89 % | 48.70 % |
Current Ratio | 0.98 X | 2.16 X |
Book Value Per Share | 0.84 X | 1.93 K |
Cash Flow From Operations | 249.21 M | 971.22 M |
Short Ratio | 4.90 X | 4.00 X |
Earnings Per Share | 0.60 X | 3.12 X |
Price To Earnings To Growth | 0.85 X | 4.89 X |
Target Price | 14.58 | |
Number Of Employees | 2.85 K | 18.84 K |
Beta | 1.91 | -0.15 |
Market Capitalization | 1.49 B | 19.03 B |
Total Asset | 1.14 B | 29.47 B |
Retained Earnings | (856 M) | 9.33 B |
Working Capital | 657 K | 1.48 B |
Note: Disposition of 31240 shares by Katayoun Motiey of Extreme Networks subject to Rule 16b-3 [view details]
Extreme Networks Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Extreme . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution | 37942.57 | |||
Daily Balance Of Power | (0.12) | |||
Rate Of Daily Change | 1.0 | |||
Day Median Price | 11.64 | |||
Day Typical Price | 11.61 | |||
Price Action Indicator | (0.12) | |||
Period Momentum Indicator | (0.03) |
About Extreme Networks Buy or Sell Advice
When is the right time to buy or sell Extreme Networks? Buying financial instruments such as Extreme Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 351.1M | 264.6M | 304.3M | 187.4M | Total Assets | 1.1B | 1.1B | 1.3B | 1.4B |
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In addition to having Extreme Networks in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Extreme Networks Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. To learn how to invest in Extreme Stock, please use our How to Invest in Extreme Networks guide.You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Complementary Tools for Extreme Stock analysis
When running Extreme Networks' price analysis, check to measure Extreme Networks' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Extreme Networks is operating at the current time. Most of Extreme Networks' value examination focuses on studying past and present price action to predict the probability of Extreme Networks' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Extreme Networks' price. Additionally, you may evaluate how the addition of Extreme Networks to your portfolios can decrease your overall portfolio volatility.
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Is Extreme Networks' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Extreme Networks. If investors know Extreme will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Extreme Networks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.77) | Earnings Share 0.6 | Revenue Per Share 10.456 | Quarterly Revenue Growth (0.07) | Return On Assets 0.0723 |
The market value of Extreme Networks is measured differently than its book value, which is the value of Extreme that is recorded on the company's balance sheet. Investors also form their own opinion of Extreme Networks' value that differs from its market value or its book value, called intrinsic value, which is Extreme Networks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Extreme Networks' market value can be influenced by many factors that don't directly affect Extreme Networks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Extreme Networks' value and its price as these two are different measures arrived at by different means. Investors typically determine if Extreme Networks is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Extreme Networks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.